SAMPLE RESEARCH PROPOSAL

PROMOTING GOOD GOVERNANCE IN PUBLICINSTITUTIONS OF GHANA: THE

ROLE OF THEINTERNAL AUDITOR

03/22/2011

SCHOOL OF BUSINESS, UNIVERSITY OF CAPE COAST, GHANA

ISHMEAL OFORI AMPONSAH (STUDENT)

Table of Contents

Introduction…………………………………….. 3
Background of the study……………………....3
Problem Statement……………….…………... 4
Research Questions…………………………4
Hypothesis………………………………….. 4
Objectives……………………………………… 5
Significance of Study………………………. 5
Literature review……………………………….. 6
Definition of internal audit……………………6
Role in the internal auditor in governance…..7
Methodology……………………………………..8
Research Design……………………………….8
Population……………………………………...8
Sampling and sampling technique……………8
Data collection…………………………………9
Data collection instrument……………………9
Data Analysis…………………………………12
Timescale……………………………………...12
Limitations……………………………………...12
References………………………………………13
Promoting Good Governance in Public Institutions
of Ghana: The Role of the Internal Auditor
Introduction

All over the world there is a realization that the Internal Audit activity has the potential to

provide hitherto unparalleled services to management 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).

Background of the Study

The Government of the Republic of Ghana by the Internal Audit Agency A ct, 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 make management take decisions that impact positively on their ability to achieve

the organisational goals.

However, according to research and surveys conducted by Deloitte & Touche (2004) and the

Internal Audit Agency of Ghana (2006), 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.

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Problem Statement

Public sector managers do not support Internal Audit. The Internal Audit function in the

Ghanaian 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 play down 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.

Management Question:
Why do public sector managers fail to support the Internal
Audit function and what can be done to curb it?
Research Questions:
1.What account for the low support for Internal Audit by public sector managers?
2.What actions are necessary to get the support of management of internal auditing in the
public sector?
3.Is there a link between the quality of service the Internal Auditor provides for his
organisation and the attitude of managers towards the Internal Audit function?
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.
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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 achievement of

organisational objectives.

2.Improve literature on public sector Internal Auditing in Ghana.

3.Fulfill the MBA requirement.

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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 has formulated three strategies which it

is currently 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 for

use by the Internal Audit function such the Internal Audit Regulations, Internal Auditing

Standards, Audit Programmes Internal Audit Charter and Annual Audit Planning templates.

2.Human Resource Development which seeks to facilitate the recruitment, training and

development of internal auditors to be proficient in applying internal audit standards,

procedures and techniques in performing engagements.

3.Quality Assurance and Improvement which 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 systematic,

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disciplined 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 the years. Modern internal audit covers (or should cover) all activities of the

organisation. 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 organisation to demonstrate its commitment

to quality and excellence. They reflect the strategic thinking and orientation of the Board and

Management to achieve the objectives of the organisation. However, every decision and

programme carries with it an element of risk of non-achievement, due to uncertainties

associated with the implementation of programs. Some of the risks are reputation, 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 to achieve those same objectives .i.e. an integrated risk
management framework that is embedded in the planning process of the organisations.

Internal Auditors are experts in creating and

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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
the
research 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

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 (MDAs).The public sector

also includes Metropolitan, Municipal and District Assemblies MMDAs).The targeted

population for 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 Departments (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

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target population will be used for the study. In total, a sample of 185 elements will be
selected
from 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 elements. First, the

population will be divided into MDAs and MMDAs.Next, the MDAs will be grouped into

Ministries, Departments and Agencies and the MMDAs into Metropolitan, Municipal and

Districts. This will ensure a fair representation of each group of institutions since their

operations are significantly different.

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 those

institutions 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’,
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‘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

whereas Section ‘C’ will consist of questions to test the hypothesis and also answer the third

research question.
Sample investigative questions:
Table 1 below provides samples of the investigative
Questions

‘B’, and ‘C’.Section ‘A’ will consist of seven questions seeking to answer the first

researchquestion.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 research question.

Sample investigative questions:
Table 1 below provides samples of the investigative
questions.
Table 1: Sample Investigative Questions
Section Research Question
Investigative Questions
‘A’
•
What account for the low
support f