The Internal Audit Agency (IAA) is advocating for a significant legislative overhaul to gain greater control and oversight over internal auditors within public institutions. This push comes as a response to ongoing challenges in ensuring accountability, transparency, and efficiency in the use of public resources.
The IAA seeks enhanced authority to ensure that internal auditors in public institutions are held accountable for their roles in overseeing financial management and operations. The proposed legislative changes aim to bolster the independence of internal auditors, allowing them to perform their duties without undue influence from the institutions they audit. This is seen as crucial for uncovering and addressing financial irregularities and corruption.
Additionally, the IAA wants to streamline the auditing process within public institutions by setting standardized procedures and practices across all public sector entities. There have been concerns about some internal auditors not fully complying with existing regulations and standards, and the IAA believes that a legislative overhaul could provide the necessary authority to enforce compliance more rigorously.
If granted expanded powers, the IAA would be able to hire, fire, and supervise internal auditors across public institutions, ensuring adherence to best practices and effective performance. The proposed legislation could also impose stricter reporting requirements, compelling internal auditors to report directly to the IAA, rather than solely to the management of the institutions they audit.
At a recent media training workshop organized by the Ghana Anti-Corruption Coalition (GACC) in Accra, Dr. Eric Oduro Osae, Director-General of the IAA, emphasized that the current framework, which places internal auditors under the direct influence of their institutional superiors, undermines their ability to perform their duties effectively. Dr. Osae argued that without such reform, the endemic irregularities that plague public institutions will persist.
He called on the government to prioritise amending the IAA Act, which would reposition internal auditors as independent entities with the necessary resources and autonomy to act as effective gatekeepers against financial mismanagement and corruption in public institutions. Dr. Osae stressed that a robust internal audit system is essential for maintaining the country’s fiscal discipline and ensuring that public funds are used effectively.
The GACC training workshop also aimed to enhance journalists’ understanding of the Auditor-General’s reports, which have consistently revealed significant irregularities in areas such as cash management, procurement, and contract execution, leading to the misappropriation of billions of cedis.
