You are here
The interplay between internal control, auditing practices, and financial performance in metropolitan assemblies in Ghana
Internal controls and internal audit play crucial roles in enhancing an organisation’s financial performance by ensuring the accuracy, reliability, and integrity of financial information, safeguarding assets, and promoting financial efficiency. The study examines the interplay between internal controls, auditing practices, and financial performance in Ghanaian metropolitan assemblies, emphasising their roles in fostering accountability, transparency, and operational efficiency. Utilising a descriptive cross-sectional research design, data were collected from 138 respondents across various departments through structured questionnaires. The findings revealed that robust internal controls are critical to ensuring reliable financial reporting and the timely settlement of payables, thereby contributing significantly to transparency and accountability. These controls not only improve financial discipline but also significantly enhance transparency and foster organisational accountability. Similarly, the study highlights the importance of effective auditing practices, characterised by adherence to professional standards and collaborative relationships between auditors and management, which were identified as pivotal in enhancing financial performance. These auditing practices were found to be pivotal factors in improving the overall financial performance of the assemblies, enabling early detection and correction of financial irregularities. However, gaps in regulatory compliance and financial transparency emerged, highlighting areas for improvement. These shortcomings point to specific areas where improvements are crucial to strengthen the overall governance framework. The study indicated that both internal controls and auditing practices significantly impact financial performance. By aligning with global best practices, the study offers practical recommendations for policymakers and administrators. These include strengthening regulatory enforcement, fostering auditor independence, and integrating technology to enhance financial sustainability. It provides a valuable conceptual and practical framework for advancing financial management in public institutions, underscoring holistic systemic strategies to address the identified weaknesses and improve governance outcomes in metropolitan assemblies.
Keywords: Internal controls, auditing practices, financial performance, transparency, and accountability controls, auditing practices, financial performance, transparency, accountability
https://orcid.org/0009-0008-5494-27021. Adegbite, E., Amaeshi, K., & Nakajima, C. (2020). Corporate governance and responsibility in African organizations. International Journal of Business Governance and Ethics. Vol. 14(2), Pp. 124–140. DOI: https://doi.org/10.1504/ IJBGE.2020.10024371
2. Aikins, S. K. (2011). An examination of government internal audits: The case of Ghana. African Journal of Accounting, Auditing, and Finance. Vol. 2(3), Pp. 245–263. DOI: https://doi.org/10.1504/AJAAF.2011.040612
3. Aikins, S. K. (2019). An examination of government internal audits: The case of Ghana. African Journal of Accounting, Auditing, and Finance. Vol. 8(3). Pp. 245–263. DOI: https://doi.org/10.1504/AJAAF.2019.10026789
4. Alzeban, A., & Gwilliam, D. (2014). Factors affecting the internal audit effectiveness: A survey of the Saudi public sector. Journal of International Accounting, Auditing, and Taxation. Vol. 23(2). Pp. 74–86. DOI: https://doi.org/10.1016/j.intaccaudtax.2014.03.004
5. Appiah, A., & Chizor, A. (2021). Internal controls and financial sustainability in Ghanaian public sector organizations. Journal of Public Administration and Policy Research. Vol. 13(1), Pp. 22–34. DOI: https://doi.org/10.5897/ JPAPR2021.0417
6. Bananuka, J., Kaawaase, T. K., & Namusobya, Z. (2019). The adoption of financial management systems in developing economies. Journal of Accounting in Emerging Economies. Vol. 9(4), Pp. 553–574. DOI: https://doi.org/10.1108/JAEE-09- 2018-0107
7. Chenhall, R. H. (2003). Management control systems design within its organizational context: Findings from contingency-based research and directions for the future. Accounting, Organizations and Society. Vol. 28(2–3), Pp. 127–168. DOI: https:// doi.org/10.1016/S0361-3682(01)00027-7
8. COSO. (2013). Internal control‑ Integrated framework: Executive summary. Committee of Sponsoring Organizations of the Treadway Commission. DOI: https://doi.org/10.2139/ ssrn.2495579
9. Goodwin-Stewart, J., & Kent, P. (2006). The use of internal audit by Australian companies. Managerial Auditing Journal. Vol. 21(1), Pp. 81–101. DOI: https://doi.org/10.1108/02686900610634787
10. Kewo, C. L. (2017). The influence of internal audit and internal control on the accountability of public sector organizations. Asian Journal of Accounting Research. Vol. 2(2), Pp. 7–14. DOI: https://doi.org/10.1108/AJAR-2017-0102
11. Lenz, R., & Hahn, U. (2015). A synthesis of empirical internal audit effectiveness literature. European Accounting Review. Vol. 24(1), Pp. 79– 114. DOI: https://doi.org/10.1080/09638180.2014.9 30693
12. Mihret, D. G., & Woldeyohannis, G. Z. (2008). Value-added role of internal audit: An Ethiopian case study. Managerial Auditing Journal. Vol. 23(6), Pp. 567–595. DOI: https://doi.org/10.1108/02686900810882110
13. Prawitt, D. F., Smith, J. L., & Wood, D. A. (2009). Internal audit quality and earnings management. The Accounting Review. Vol. 84(4), Pp. 1255–1280. DOI: https://doi.org/10.2308/accr.2009.84.4.1255
14. Sagoe, A. A., Ashun, A. K., & McMurtrey, M. (2025). The synergy between internal control mechanisms and audit functions for optimal financial outcomes. Journal of Accounting and Finance. Vol. 25(3). URL: https://articlegateway.com/index.php/JAF/article/view/7898
15. Sagoe, A. A., & Ashun, A. K. (2025). “Influences of Credit Risk Management on Financial Resilience of SMEs in Ghana”. Asian Journal of Economics, Business and Accounting. Vol. 25 (11). Pp. 506–525. DOI: https://doi.org/10.9734/ajeba/2025/v25i112068.
16. Sarens, G., & De Beelde, I. (2016). Internal auditors’ perception about their role in risk management. Managerial Auditing 156 Економіка та управління АПК, 2026, № 1 econommeneg.btsau.edu.ua Journal. Vol. 21(1), Pp. 63–80. DOI: https://doi.org/10.1108/02686900610634766
17. Tumwine, S., Akisimire, R., & Kamukama, N. (2020). Financial management systems and accountability in local governments. African Development Review, Vol. 32(2), Pp. 141–155. DOI: https://doi.org/10.1111/1467-8268.12411
| Attachment | Size |
|---|---|
 ekon_1-2026-143-156.pdf | 568.79 KB |