The study seeks to ascertain the practices of the audit committee and internal audit improving corporate governance among companies in Ghana, with specific attention to analysing the audit committee's impact on improving internal audit operations, identifying the relationship between the internal audit unit and the audit committee members. Moreover, the author analyzes the impact of the internal audit department and audit committee members on the risk management strategy of companies.
The author aims to exam the relationship that exists among the audit committee, internal audit, and its part in the corporate governance system. A critical analysis of the circumstances leading to the collapse of businesses shows that the majority of these corporate failures could be avoided if effective audit committees and internal audit departments are in place to check management activities, especially concerning financial reporting and other accounting practices.
The study results were obtained by using data gathered from the internal auditors and audit committee members through the questionnaire survey method.
Table of Contents
1 INTRODUCTION
2 LITERATURE REVIEW
2.1 THEORETICAL REVIEW
2.2 EMPIRICAL REVIEW
2.3 Summary of Literature Review
3 RESEARCH METHODOLOGY
3.1 Study Design
3.2 The Population Size, Sample and Sampling Technique
3.3 Research Collection and Validity of the Research Instrument
4 RESULTS AND DISCUSSION
4.1 Demographic Characteristics
5 Conclusion
5.1 Recommendation
Research Objectives and Themes
This study aims to evaluate the influence of the audit committee on the effectiveness of the internal audit department within the corporate governance systems of companies in Ghana, specifically exploring how this collaboration impacts risk management and organizational accountability.
- The impact of audit committees on improving internal audit operations.
- The nature of the relationship between internal audit units and audit committees.
- The influence of internal audit and audit committee collaboration on risk management strategies.
- Corporate governance structures and practices within the Ghanaian business environment.
Excerpt from the Book
1 INTRODUCTION
Corporate governance consists of laws, practices and processes governing and controlling businesses. Corporate governance has become a significant problem in developing countries in the past couple of decades. Managers, owners, and corporate executives have begun to understand that a good corporate governance structure can give advantages to their businesses (Carcello, 2019).
Good corporate governance enables raise in share prices and makes capital acquisition easier. When things are achieved illegally, when corporate governance is not respected and when cohesive measures are not taken, shareholder value is lost. Corporate governance communication is the main element in the relationship between society and the business, the majority of businesses aim for the best level of business administration.
The Board of Directors are the main immediate to stakeholders that influence corporate governance, they are voted by shareholders or other associates of the board and stand-in for the company's shareholders. The Board is responsible for making significant choices such as appointments of corporate officers, audit committee members, executive compensation and dividend policy. Corporate governance is improved both in the private division and in the public division by the presence and appropriate functioning of the Audit Committee (Cadbury Report, 1992). An audit committee is unique of the main working committees of a board of directors in charge of the control of financial reporting and disclosure. An audit committee is a group of managers responsible not for managing the company, but for supervising how the company is regulated, recorded and carried on (Arthur, 1998).
Summary of Chapters
1 INTRODUCTION: Outlines the significance of corporate governance and the specific roles of the Board of Directors, Audit Committees, and internal auditors in modern business structures.
2 LITERATURE REVIEW: Examines theoretical frameworks like Agency and Stewardship theories, alongside previous empirical studies regarding audit committee performance and internal auditing.
3 RESEARCH METHODOLOGY: Details the descriptive research approach, the selection of the target population (internal auditors and audit committee members), and the data collection process via questionnaires.
4 RESULTS AND DISCUSSION: Presents an analysis of the survey data, focusing on demographic characteristics and the impact of the audit committee on internal audit operations and risk management.
5 Conclusion: Summarizes the study's findings, affirming the positive impact of audit committee and internal audit cooperation on corporate governance, and provides strategic recommendations for improvement.
Keywords
corporate governance system, internal audit unit, audit committee members, risk management, business administration, Ghana, agency theory, stewardship theory, audit quality, internal control, financial reporting, accountability, corporate failure, survey methodology, strategic business unit.
Frequently Asked Questions
What is the primary focus of this research paper?
The research examines the relationship and influence between the audit committee and the internal audit department within the broader corporate governance system of companies in Ghana.
What are the central themes addressed in this work?
The key themes include audit committee effectiveness, internal audit operational quality, corporate risk management strategies, and the improvement of corporate governance in developing economies.
What is the main objective or research question?
The study aims to determine how the audit committee impacts internal audit operations and whether their collaboration significantly enhances a company's corporate governance structure.
Which scientific methodology is applied in this study?
The author uses a descriptive research approach, gathering primary data from internal auditors and audit committee members in Ghana through structured questionnaires, followed by quantitative analysis.
What topics are discussed in the main body of the work?
The main body covers theoretical reviews of Agency and Stewardship theories, literature on corporate governance, the study's methodology, and detailed statistical analysis of the survey responses.
Which keywords best characterize this academic work?
The work is characterized by terms such as corporate governance system, internal audit unit, audit committee, risk management, and organizational accountability.
How does the author interpret the relationship between internal audit and the audit committee?
The author finds that effective communication and collaboration between these two entities are essential for achieving high-quality internal audit results and reinforcing firm accountability.
What does the study suggest regarding audit committees in Ghana?
The study concludes that while audit committees perform several roles, many of the investigated committees were found to be lacking in overall effectiveness, prompting recommendations for better staffing and integration.
- Quote paper
- Wiredu Richard (Author), 2020, The Influence of the Audit Committee on the Internal Audit Department in the System of Corporate Governance in Ghana, Munich, GRIN Verlag, https://www.grin.com/document/536616
