Abstract:
The increasing rate of fraud and corruptions of accounting professionals in recent times calls for institutions and national concerns about the situation. This research sought to analyze the costs and benefits of internal audit in organizations.
The purpose was to assess the independent of internal audit department, undertake evaluation of the costs and benefits of internal audit department in some organizations, and to recommend organizations that do have internal audit unit to establish. The research was conducted on internal audit department of Volta River Authority in Accra, and Garden City University College in Kumasi and information gathered through administration of structured questionnaires and interviews.
Description:
“The need to improve corporate governance came to prominence in the UK in the 1980s, following the high profile collapse of a number of large companies including Maxwell, Polly Pecks, and BCCI etc” (Boynton, Johnson and Kell, 2001). Poor standards of corporate governance also led to insufficient controls being in place to prevent wrongdoing in the US in the 1990s, as demonstrated by the collapses of Enron and World Com.
Corporate governance is about ensuring that companies are run well in the interest of all stakeholders. The two factors, which contribute strongly to good corporate governance, are:
the way the board is structured
Mechanisms to ensure that management is subject to checks and balances which ensure that management’s actions are reviewed by either a supervisory board orNon-executive directors acting through board sub-committees.
