ASSESSMENT OF THE EFFECTIVENESS OF THE INTERNAL AUDIT SYSTEM IN HOSPITALS: THE CASE OF ST. JOSEPH HOSPITAL IN THE UPPER WEST REGION OF GHANA

Abstract

In many government establishments, internal auditing is being used as a means of ensuring effective and efficient management of resources (human, material and financial) and to better manage risk. In hospitals such as St. Joseph Hospital, internal auditing has been embraced as a means of internal control. The study assesses internal audit system at St. Joseph Hospital of the Upper West Region of Ghana. The general objective of this study is to investigate the effectiveness of the internal audit system in St. Joseph Hospital. The study adopted the qualitative approach but leaned against the quantitative approach to better understand and espouse and analyze the challenges that are likely to hinder effective internal audit system at St. Joseph Hospital. It was revealed that there is no permanent Internal Auditor at St. Joseph Hospital. The study concludes that the Internal Auditor criticizes on issues of non-compliance and makes recommendations to management. With regard to management support for internal audit effectiveness, the study asserts that even though management provided inadequate logistics, it however, created the enabling environment for the Internal Auditor to perform his duties since he is allowed access to records and information. It is further established that the under listed are among the factors militating against the effectiveness of the internal audit system at Joseph Hospital: lack of permanent internal auditor, inadequate logistics, indifferent attitude of some management staff and disregard for accounting standards and practices. It concluded that the function of the internal audit department lacks the full implementation of the audit function, policies and does not wholly comply with the function of audit department. The study concludes by recommending the establishment of an audit unit, recruitment of a permanent internal auditor, provision of adequate logistics, orientation of staff on the importance of internal audit and the application of internal auditing standards and principles in the preparation of report.