THE EFFECTIVENESS OF INTERNAL AUDIT FUNCTION AS A CONTROL MECHANISM FOR GOVERNMENT SPENDING IN LOCAL GOVERNMENT A CASE STUDY OF EJISU-JUABEN MUNICIPAL ASSEMBLY (EJMA)

Abstract

ABSTRACT Government spending as a means for government to fulfil their objectives has been a significant public and regulators attention in today’s global world and the internal audit has been identified as the most effective control mechanism for government spending in local government. This study, therefore, investigated into the effectiveness of the internal audit function as a control mechanism for government in the local government. It reviewed literature of internal audit, government spending, internal control and factors that contribute to the effectiveness of internal audit. Quantitative research method was employed. Simple random sampling and census procedures were used to obtain data from 123 staff in the assembly and a sample size of 120 in the Ejisu-Juaben Municipal Assembly. Tools used were questionnaires, mean, standard deviation and percentages. The study revealed that the internal auditors receive great management support and the audit committees in the assemblies are very effective. It is also evident that majority of the internal auditors have requisite skills and experience. The units also experienced adequate resources allocation. This suggests that the internal audit units in the assembly are effective. Therefore, to control government spending, the internal audit units should enhance government spending, appropriate governance structure, sufficient and appropriate resources and competent personnel.