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Promoting Good Governance in Public Institutions Essay

All over the world there is a realization that the Internal Audit activity has the potential to provide hitherto unparalleled services to managemet in the conduct of their duties. This potential has been turned into a challenge and embodied in the new definition of Internal Auditing from the Institute of Internal Auditors (the IIA).

The Government of the Republic of india by the Internal Audit Agency Act, 2003 (Act 658)established the Internal Audit Agency “as an apex oversight body to co-ordinate, facilitate and provide quality assurance for Internal Audit activities within the public sector” (Section 16 of Act658). The Internal Auditor’s value lies in how well he has been able to contribute to the achievement of the overall organisational objective. The Internal Auditor should constantly seek to make himself relevant to his organisation by providing information that will makemanagement take decisions that impact positively on their ability to achieve the organisational goals. However, according to research and surveys much of the work of Internal Audit has been very restrictive in terms of scope. This needs to be addressed if the required return on investment in the Internal Audit activity is to be attained.

Public sector managers do not support Internal Audit. The Internal Audit function in the indian public sector faces a perception and, to some extent, a credibility problem as a value-adding unit of the organisation. The Internal Audit Agency (2006) believes that the importance of Internal Audit is “shrouded in obscurity”. This unfortunate background continues to playdown the importance of Internal Audit as a key function that can strengthen the oversight responsibility of the governing body. This reflects in the management attitude towards the Internal Auditor. Most often than not the budget of the Internal Audit Unit, if any exist at all, is woefully inadequate to enable them meet the resource requirements of their annual audit plans. Internal Auditors are seen more as fault finders rather than solution providers and partners in the Government’s strive for organisational excellence.

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.

Significant:

The significance of the study will be to:

1.Improve public understanding of the role of the Internal Auditor in the achievement of organisational objectives. 2.Improve literature on public sector Internal Auditing.

Hypothesis:

There is no relationship between the quality service Internal Auditors provide for their organisations and the attitude of managers towards the Internal Audit function.

Research design;

The study will involve the evaluating the role of Internal Auditors in the good governance of the organisations in the public sector. Consequently, the research will be designed to achieve the objectives set out by the researcher.

Population:

The public sector of Ghana is the biggest employer of Internal Auditors and involves several organisations including Ministries, Departments and Agencies.

Study design:

The responses to the structured close-ended questions will be rated in percentages. The percentage of respondents for each alternative will be given and analysed. The data collected will be analysed using the computer software known as Statistical Package for Service Solution(SPSS)

Sampling:

In total, a sample of 185 elements will be selected from a targeted population of 300. Data collection:

The Focus of study is on attitudes and perception and the importance of primary data cannot be over-emphasised. However, Secondary data will also be collected to augment the studies. Before the actual data collect the researcher will collect introductory letter from the school of Business of the University of Cape Coast to the sampled institutions. The initial visit to the selected institutions will therefore be to introduce himself, familiarize himself with thoseinstitutions as well as seek their consent for the study. Data collection instrument:

The researcher will collect data by administering a questionnaire. The questionnaire will use structured questions, consisting of approximately 20 questions divided into three sections ‘A’,‘B’, and ‘C’.

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