EXPLORING THE ROLE OF INTERNAL AUDIT UNIT AT KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY

Abstract

Internal Audit Function is an independent, objective assurance and consulting activity designed to add value and improve an organisation’s operations. It helps an organization accomplish its objectives by bringing a systematic, discipline approach to evaluate and improve the effectiveness of risk management, control, and governance processes. The role of Internal Audit Unit in an organisation cannot therefore be over emphasized. This research explores the role of Internal Audit Unit in KNUST. The research takes a single case study approach to present an in-depth analysis of the role of Internal Audit Unit in the case study institution. Questionnaire and interview guides were the main tools used in the data collection. The data were interpreted using SPSS and Microsoft Excel with tables and charts to boost clarity and comprehension. The places visited include the Finance Office, Accounts Offices of Colleges, Halls of Residence, both KNUST Basic and Senior High Schools, Institute of Distance Learning, Hospital and the Internal Audit Department of KNUST. The findings revealed that Internal Audit Unit plays an important role in KNUST. The study identified the internal controls that exist in KNUST and they include: approval and control of document; checking the arithmetical accuracy of records; maintaining and receiving control accounts and trial balance; reconciliation; segregation of duties; and internal audit. The Internal Audit Department evaluates the effectiveness of these Internal Controls through their activities and this, as a matter of fact, goes a long way to contribute to the achievement of the objectives of KNUST. The study recommends that, there should be enough Internal Audit staff and these staff should be provided with attractive motivational packages to boost their morale, thereby making them more objective in their duties. The study should have covered all public tertiary institutions in Ghana with respect to the role of Internal Audit Unit. Nevertheless, KNUST was taken as the case study because of time constraints and limited resources for the study.