A Critical Examination of Internal Control Systems in the Public Sector , A Tool for Alleviating Financial Irregularities: Evidence from Ghana

This paper examined the existence of internal control systems in four (4) government departments located in the central business district of Accra, Ghana. The internal control elements examined included Control environment, Communication and information, Risk Assessment, Monitoring, Control Activities and the functions of the Internal Audit unit, as an agent of good governance, accountability and commitment to ensuring reliable financial reporting.  Structured questionnaires were administered to a non-probability sample of 100 respondents from the Administrative department, Finance, Internal Audit, Human resources and other departments. Internal control system was measured using the six elements of the COSO internal control framework developed in 2002. Secondary data was captured from the Auditor General’s report on public accounts and analysed using the Statistical Package for Social Scientist (SPSS) and STATA to establish the relationship between the dependent and independent variables based on the research hypothesis. The statistical techniques deployed were regression and correlation. The study concluded that indeed there are significant relationships between internal control systems and effective public sector financial management. The study recommended an independent private audit of all public accounts to supplement the effort of government appointed Auditor General in order to guarantee assurance and transparency. Departments and ministries must practice inter-departmental monitoring to ensure due diligence and reward for outstanding performance. Keywords: Transparency, COSO Internal Control framework, Compliance, Financial irregularities, Public Sector Efficiency

An Empirical Study of External Auditor’s Independence and Contribution to Assurance ,Transparency of Public Sector Accounting Systems and Controls: A Case of the Ministry of Finance, Ghana

This paper investigates a number of critical determinants of auditor’s independence in handling public sector accounts and the necessity to act in a professional fashion to guarantee transparency of public sector accounting. The study contribute to knowledge regarding the increasing financial irregularities and lack of due diligence in the application of public resources, critical evaluation of the link between internal control systems and independent auditing for the sake of objectivity and good governance. The study employed the Chi-square goodness of fit test with the help of SPSS and STATA software to determine the degree of association, correlation coefficient and the degree of independence between the dependent and independent variables selected for the analyses. A total of 200 participants were purposively drawn from the Ministry of Finance of Ghana for the study. Measuring the variables for association, the Pearson Chi-Square test confirmed significant relationships at a level of {P<0.000<0.05}, statistically implies that the alternate hypothesis be accepted with further justification from the high Ch-Square test values for each independent variable measured . There is a high possibility that certified and qualified auditors can act in a professional fashion without external influence as implied by; [   (184.856), p-value <0.05, df: 1]. Public Scrutiny can ensure due diligence by auditors as indicated in  = 179.541 at a significant level of p< 0.001. The role of internal audit is critical is ensuring transparency at =193.430 and a significant level of p<0.002<0.05. The contribution by the board is equally significant at p<0.000 indicating the relevance of their existence in every organisation. The study therefore came to a conclusion that sensitive information regarding the public sector be made known to stakeholders for scrutiny particularly issues with long and short term financial implications . In order to ensure transparency and objectivity the internal audit must be equipped to the standard of the external auditors, while the board consist of people with expert knowledge in a particular ministry or department. Auditors with long standing reputation and certification by a professional body are suitable to handle public accounts to reduce the tendency of being influenced by incompetent management as a basic requirement for sound internal control systems across the public sector of Ghana. Keywords: Independent auditing, Assurance, Public confidence, Transparency, Internal Control systems

Importance of Organizational Tacit Knowledge: Barriers to Knowledge Sharing

This chapter incorporates the relevance of tacit knowledge and highlights some major barriers to knowledge sharing. Knowledge transfer is action through which; information, skills, expertise and experience is exchanged among people in an organization and it is a valuable and tangible asset for creating sustainability, performance and competitive advantage. From what is currently known, knowledge sharing activities occur generally with the support of knowledge systems designed by the board and knowledge managers. It is suggested that technology is one of the tools that support knowledge sharing, though other factors exist, such as organizational culture, trust, leadership and management philosophy, incentives and internal control systems. In this study, the researchers explore possible knowledge sharing opportunities and associated barriers, starting from top management to employees. The main purpose of this chapter is to look at how tacit knowledge affects organizational success. The chapter also covers ways to promote knowledge transfer in order to improve organizational performance and innovation. The discussion elaborated on the significance of tacit knowledge in a way that previous literature does not. It is emphasized that, from a resource-based view, businesses gain competitive advantage when they value and retain their existing tacit knowledge, as explicit knowledge is already known to everyone. According to the study, important variables such as corporate culture, individual employees, technology, and organizational internal factors are potential hurdles that must be examined to minimize the impact on organizational learning

The Value of Public Sector Risk Management: An Empirical Assessment of Ghana

This study investigates risk management practices in public entities in the Ghana. We relied on the popular framework designed by the Committee of Sponsoring Organizations of the Treadway Commission—COSO, to advocate for possible ways to minimize the occurrence and effects of risk in public organizations. The internal control elements used include: control environment, commitment to ethics, segregation of duties, review and information and communication. These constitute the explanatory variables used in performing multivariate data analysis to determine the dimensionality of the data set and possible outcomes. The exploratory research followed a quantitative approach using the survey method and a structured equation model. We established that, due to globalization and increases in the scale of operations, it is practically impossible for management through the help of auditors and those in charge of governance to validate the entire operations of the public sector to ensure strict compliance to internal control principles, in order to minimize the detrimental impacts of risk. However, an alternative sustainability depends on the prominence of quality financial reporting, compliance, commitment to ethical values and consistency in pursuit of the strategic and operational objectives based on good corporate governance. On the other hand, the implications of risks should be embedded in the minds of public servants as part of the organizational culture that will complement existing tools and techniques of internal control