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Main Article Content
Assessing the determinants and challenges of external auditors’ reliance on internal audit work in Ghana
Redruph Nyaaba Ayimpoya
Abstract
This study investigates the determinants and challenges of external auditors’ reliance on internal audit work in Ghana, using Agency Theory and Resource Dependence Theory as theoretical frameworks. A quantitative research design was adopted, employing a descriptive survey approach to collect data from 127 respondents drawn from the Ghana Audit Service, internal audit units of Municipal and District Assemblies (MMDAs), and other public institutions within the Savanna Region. The target population comprised staff directly involved in internal and external audit processes, and the sample size was determined using a formula for finite populations, with simple random sampling and purposive sampling techniques employed. Data collection was conducted through structured questionnaires divided into demographic information and Likert-scale items measuring the degree of external auditors’ reliance, influencing factors, and associated challenges. Data were analyzed using descriptive statistics (frequencies, percentages), correlation analysis, and hypothesis testing through regression and t-tests, all performed using SPSS. The findings reveal a strong positive relationship between the performance of internal auditors, particularly in their roles as systems consultants, and the extent to which external auditors rely on their work. Organizational status was found to be less significant as a barrier compared to other challenges faced by external auditors. The study concludes that the collaboration between internal and external auditors can be significantly enhanced by improving the skills and performance of internal auditors, particularly in areas related to modern auditing systems and value-added consulting roles. Challenges such as inadequate resources and limited training opportunities remain barriers to effective reliance. It is recommended that organizations invest in continuous professional development for internal auditors, particularly in contemporary computerized auditing systems, and adopt policies that promote effective collaboration between internal and external audit teams. Future research should explore the role of emerging technologies in reshaping the relationship between internal and external auditors.
