Frank Kofi Asare
Internal Auditor | Akatsi College of Education
Email: frankas211@yahoo.com
Abstract
The Internal Audit unit in the MDAs basically forms an integral part of the internal control mechanism of the assembly. The internal audit unit provides reasonable assurance to the assembly that financial and non-financial controls are effectively in place, policies, regulations and laws are adequate, and are complied with through independent reviews of various activities (Internal Audit Act, 2003). To ensure effective financial administrations at the assembly, the Internal Audit unit is to review all payments to be made by the assembly, review all revenues receipted before and after they are paid into the bank. The unit also inspects and verifies all items received into stores as against specification and established standards and other personal related issues (Financial Administration Act, 2003). The internal audit unit is supposed to ensure strong control over collection and recording of Internally Generated Fund (IGF); regular banking of revenue daily; ensure correct statement of revenue; prepare bank reconciliation statements monthly; inspect payment vouchers adequately acquitted and properly filed, etc. (Financial Administrations Act, 2003). Unfortunately, these seem not happening; even the Public Accounts Committee (PAC) sitting in Volta Region in 2012 revealed that 48.4 million Ghana cedis was lost by the state from the statutory funds, including the district assemblies common fund, through the MDAs across the country during the 2010, 2011 and 2012 financial years. This basically showed financial irregularities in almost all the MDAs in Ghana. What makes it even more alarming is the fact that the internal audit unit is supposed to clean up the system before the external auditors come in. However, few research works have been conducted in the public sector, including Woodworth and Player (2003). There is a gap created because no one has researched into this area. This has motivated the researcher to find out the operations of internal audit units in ensuring effective and efficient financial administration in some selected MDAs in Volta region.
Keywords: Keywords: Audit Operation, Internal Audit Units, Financial Administration, Auditing Practices