Title: Independence, objectivity and integrity compliance by public sector internal auditors in Ghana: evidence from Ashanti Region

Authors: Felix Kwame Aveh; Dadson Awunyo-Vitor; Richard Owusu Afriyie

Addresses: Department of Accounting, Finance, Economics and Research, Ghana Institute of Management and Public Administration (GIMPA), Achimota, Accra, Ghana ' Department of Agricultural Economics, Agribusiness and Extension, Faculty of Agriculture, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana ' Department of Accounting and Finance, School of Business, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana

Abstract: This study seeks to assess factors that influence public internal auditors' compliance with the principles of independence, objectivity and integrity. Data was collected from 180 sampled internal auditors in public institutions in the Ashanti Region of Ghana. A questionnaire was used to solicit information and data from the respondents. Descriptive statistics and logit regression model were used to analyse the data. The results revealed that not all the respondents understand their roles with regards to ensuring information security and regulatory compliance of their organisations. One major threat to code of ethic compliance is the auditing of departments that take decisions on internal auditor's salary. Based on the logit regression, knowledge and perceived severity of penalty as well as top management support have a positive effect on compliance decisions. Thus to ensure that internal auditors' compliance with the principles of independence, objectivity and integrity the internal auditors need to be educated on their roles and responsibilities, as well as the penalty for non-compliance. Organisations should appoint an independent entity to review the work of internal auditors, and the top management should be encouraged to support the internal audit department in performance of their duties.

Keywords: internal audit; independence compliance; objectivity compliance; integrity compliance; public institutions; Ashanti Region; Ghana; public sector; internal auditors; information security; regulatory compliance; ethical compliance; ethics; auditor roles; auditor responsibilities; non-compliance penalties; top management support.

DOI: 10.1504/IJCA.2016.10002496

International Journal of Critical Accounting, 2016 Vol.8 No.5/6, pp.444 - 462

Received: 18 Jun 2016
Accepted: 20 Jun 2016

Published online: 18 Jan 2017 *

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