Objectives

The objectives of the research project are to:

1. Examine the factors responsible for the low support for the Internal Audit Activity
by managers of public institutions.
2. Identify specific actions required to secure support of managers for the Internal
Audit Activity.
3. Establish the relationship between quality of service and support of managers for Internal Audit.

Significance of Study

The significance of the study will be to:

1. Improve public understanding of the role of the Internal Auditor in the
a c h i e v e m e n t o f   organizational objectives.
2. Improve literature on public sect or Internal Auditing in Ghana.3 . F u l f i l l t h e
MBA requirement

Literature Review
The Government of Ghana has taken a proactive step in establishing the Internal Audit
Agency(The Agency) by an Act of Parliament in 2003. The IAA is mandated to co-
ordinate, facilitate and provide quality assurance for internal audit activities within the public sector
institutions (the IAA Act 2003, Act 658). The Agency
h a s   f o r m u l a t e d   t h r e e   s t r a t e g i e s   w h i c h   i t i s   c u r r e n t l y  pursuing to improve the image
of the Internal Audit function in the public sector. These are as follows:1.Professional
Practice Framework which aims at developing key documents and templates f o r u s e b y
the Internal Audit function such the Internal Audit Regulations, Internal
Auditing Standards, Audit Programmes Internal Audit Charter and Annual Audit
Planningtemplates.2 . H u m a n   R e s o u r c e   D e v e l o p m e n t w h i c h s e e k s t o   f a c i l i t a t e   t h e
r e c r u i t m e n t , t r a i n i n g a n d development of internal auditors to be proficient in applying
internal audit standards,  procedures and techniques in performing engagements.3.Quality
Assurance and Improvement whi ch addresses the issue of continues improvement in the
performance of the internal audit activity.

Definition of Internal Audit

According to the Institute of Internal Auditors, “internal auditing is an independent,
objective
assurance and consulting activity designed to add value and improve 
an organization’s
operations. It helps an organization accomplish its objectives by bringing a sy
s t e m a t i c d isciplined approach to evaluate and improve the effectiveness of risk management, control,
and governance processes” (March 2007).This definition actually seeks to demonstrate the depth and
breadth of the internal audit activity within an institution as against the previous orientation of reviewing
payment transactions
over t h e   y e a r s .   M o d e r n   i n t e r n a l   a u d i t   c o v e r s   ( o r   s h o u l d   c o v e r )   a l l   a c t i v i t i e s   o f  
t h e   o r g a n i z a t i o n . Therefore the scope of internal audit is no longer restricted to the
processes and systems in the accounts and finance function.

Role of the Internal Auditor in governance

The value of the modern day internal auditor lies in his ability to help management to achieve its’
objectives. According to a research jointly conducted by Deloitte & Touche and the Institute of Internal
Auditors, U.K., (2004) “improved attitudes toward internal audit are built on a belief that internal audit
functions are creating greater value for their organisations”.Governance refers to all the strategic plans of
the organization to demonstrate its commitment toq u a l i t y a n d e x c e l l e n c e . T h e y r e f l e c t t h e
strategic thinking and orientation of the Board and Ma nagement to achieve
t h e   o b j e c t i v e s o f   t h e o r g a n i z a t i o n .   H o w e v e r ,   e v e r y d e c i s i o n   a n d  programmed
carries with it an element of risk of non-achievement, due to uncertainties associatedwith the
implementation of programs. Some of the risks are reputational, financial, operational,and information
technology related. It would therefore be appropriate to have a structured way of identifying events that
would impact negatively on the ability of management to achieve their  objectives and also to
take advantage of opportunities and other events that could be leveraged toachieve those same
objectives. i.e. an integrated risk management framework that is
embeddedi n   t h e   p l a n n i n g   p r o c e s s   o f   t h e   o r g a n i s a t i o n s .   I n t e r n a l
A u d i t o r s   a r e   e x p e r t s   i n   c r e a t i n g   a n d promoting a risk management culture that is necessary to
the effective implementation of the risk management framework. They can also assist in monitoring the
framework.
Methodology
This section presents an overview of the methods to used in the study. Areas covered include theresearch
design, population, sample and sampling techniques, data collection and analysis.
Research Design
The study will involve the evaluating the role of Internal Auditors in the good governance of
theorganisations in the public sector. Consequently, the research will be designed
to achieve theobjectives set out by the researcher.
Population
The public sector of Ghana is the biggest employer of Internal Auditors and involves
severalorganisations including Ministries, Departments and Agencies (MDAs). The public sector
alsoincludes Metropolitan, Municipal and District Assemblies MMDAs). The targeted
populationfor the study thus includes the following:
1.
Chief Directors and Directors of all MDAs.
2.
Coordinating Directors, Finance Officers and other staff of MMDAs.
3.
Heads and staff of internal Audit Depar 
tments (IADs) of MDAs and MMDAs.
Sampling and Sampling Technique
It obvious from the definition of the population above that a census is not feasible in this
study.Accordingly, the researcher will adopt the survey type of research in which a sample from the target
population will be used for the study. In total, a sample of 185 elements will be selectedfrom a targeted
population of 300. Details of the sample are as follows:
•
15 Chief Directors and 30 Directors of MDAs.
•
20 Coordinating Directors, 20 Finance Officers and 20 other staff of MMDAs.
•
40 Heads of IDAs and 40 Internal Auditors of MDAs and MMDs.The study will adopt a multistage
stratified sampling method to select element s. First, the population will be divi ded into
MDAs and MMDAs. Next, the MDAs will be grouped into M i n i s t r i e s ,   D e p a r t m e n t s   a n d
Agencies and the MMDAs into Metropolitan, Municipal andDistricts. This will 
e n s u r e a   f a i r   r e p r e s e n t a t i o n   o f   e a c h g r o u p o f   i n s t i t u t i o n s s i n c e t h e i r   operations
are significantly different.
Data Collection
The focus of study is on attitudes and perception and the importance of primary data
cannot beo v e r - e m p h a s i s e d .   H o w e v e r ,   s e c o n d a r y d a t a   w i l l   a l s o   b e   c o l l e c t e d
t o   a u g m e n t t h e   s t u d i e s . Before the actual data collect the researcher will collect
introductory letter from the School of  Business of the Universi ty of Cape Coast to the
sampled institutions. The initial visit to
thes e l e c t e d   i n s t i t u t i o n s   w i l l   t h e r e f o r e   b e   t o   i n t r o d u c e   h i m s e l f ,   f a m i l i a r i z e   h i m s
e l f   w i t h   t h o s e institutions as well as seek their consent for the study.
Data collection instrument
The research er will collect data by administer ing a questionnaire. The questionnaire will
usestructured questions, consisting of approximately 20 questions divided into three
sections ‘A’‘B’, and ‘C’.  Section ‘A’ will consist of seven questions seeking to answer the
first research question. Section ‘B’ will consist of six questions covering the second research question
whereasSection ‘C’ will consist of questions to test the hypothesis and also answer the third
researchquestion.
Sample investigative questions:
T a b l e   1   b e l o w   p r o v i d e s   s a m p l e s   o f   t h e   i n v e s t i g a t i v e questions.
Table1:
 
Sample Investigative Questions
S e c t i o n R e s e a r c h   Q u e s t i o n I n v e s t i g a t
i v e   Q u e s t i o n s
‘A’
•
W h a t   a c c o u n t   f o r   t h e   l o w support for Internal Audit by public sector managers?
•
Are you aware of the role of the Internal Auditor  in you organisation?
•
H o w i m p o r t a n t d o y o u t h i n k i s t h e r o l e o f t h e Internal Auditor to your organisation?
•
In your view, is the Head of Internal Audit placedappropriately on the organisational chart?‘B’
•
What actions are necessary
tog e t   t h e   s u p p o r t   o f   m a n a g e m e n t   o f   i
n t e r n a l auditing in the public sector?
•
G e n e r a l l y , h o w w i l l y o u r a n k t h e r e l e v a n c e o f   Internal Audit in your organisation?
•
What reasons account for your answer above?
•
What do you consider the three most important a c t i o n s n e e d e d t o p r o m o t e I n t e r n a l
A u d i t i n g i n the public sector?‘C’
•
I s t h e r e   a   l i n k   b e t w e e n   t h e quality of service the
InternalA u d i t o r   p r o v i d e s   f o r   h i s organisation and the
attitudeo f   m a n a g e r s   t o w a r d s   t h e Internal Audit function?
•
What do you consider to be the highest achieve of your internal audit department?
•
W o u l d   a g r e e   t o   t h e   s t a t e m e n t   t h a t   o n e ’ s  perception of the
Internal Auditor is influenced byhow they perceive his role in the company?
•
W i l l   y o u r   a t t i t u d e   t o w a r d s   I n t e r n a l   A u d i t   b e different if they help you achieve your
objectives?

Research proposal – SB/MAC/08/0005

Page 10

S e c t i o n R e s e a r c h   Q u e s t i o n I n v e s t i g a t
i v e   Q u e s t i o n s
‘A’
•
W h a t   a c c o u n t   f o r   t h e   l o w support for Internal Audit by public sector managers?
•
Are you aware of the role of the Internal Auditor  in you organisation?
•
H o w i m p o r t a n t d o y o u t h i n k i s t h e r o l e o f t h e Internal Auditor to your organisation?
•
In your view, is the Head of Internal Audit placedappropriately on the organisational chart?‘B’
•
What actions are necessary
tog e t   t h e   s u p p o r t   o f   m a n a g e m e n t   o f   i
n t e r n a l auditing in the public sector?
•
G e n e r a l l y , h o w w i l l y o u r a n k t h e r e l e v a n c e o f   Internal Audit in your organisation?
•
What reasons account for your answer above?
•
What do you consider the three most important a c t i o n s n e e d e d t o p r o m o t e I n t e r n a l
A u d i t i n g i n the public sector?‘C’
•
I s t h e r e   a   l i n k   b e t w e e n   t h e quality of service the
InternalA u d i t o r   p r o v i d e s   f o r   h i s organisation and the
attitudeo f   m a n a g e r s   t o w a r d s   t h e Internal Audit function?
•
What do you consider to be the highest achieve of your internal audit department?
•
W o u l d   a g r e e   t o   t h e   s t a t e m e n t   t h a t   o n e ’ s  perception of the
Internal Auditor is influenced byhow they perceive his role in the company?
•
W i l l   y o u r   a t t i t u d e   t o w a r d s   I n t e r n a l   A u d i t   b e different if they help you achieve your
objectives?

 
Most of the structured questions will be the close-ended type and respondents willbe asked to mark the
appropriate box matching the correct answer. Otherquestions, however, will require respondents to give opinions

Data Analysis
The responses to the structured close-ended questions will be rated in
p e r c e n t a g e s .   T h e  percentage of respondents for each alternative will be given and
analysed. The data collectedwill be analysed using the computer software known as Statistical
Package for Service Solution(SPSS).
Timescale
June – July 2009:
review of literature
August 2009:
draft literature review
September 2009:
agree research strategy with supervisor 
October 2009:
agree formal access to organisations for collection of primary data
November 2009:
compile, pilot and review questionnaire
December 2009 - January 2010:
administer questionnaire
February 2010:
final collection of questionnaire
March 2010:
data analysis
April – May 2010:
final writing of project report.
Limitations
The researcher cannot cover all the ten regions of Ghana. The research will therefore be restricted to
fiveout of the ten regions