Launch of Independence and Accountability in Governance Report: Strengthening Internal Audit for Improved Public Financial Management

Internal Audit Agency Director General Calls for Strengthening of Internal Audit Systems in Public Institutions

The Director General of the Internal Audit Agency (IAA), Dr. Oduro Osae, has emphasized the importance of strengthening internal audit systems in various public institutions to address challenges facing the country’s public financial systems. Speaking at the launch of the Independence and Accountability in Governance Report in Accra, Dr. Osae highlighted the role of internal audit as a preventive approach that reduces the pressure on the Auditor General.

The Independence and Accountability in Governance assessment, conducted as part of the World Bank’s Advisory Services and Analytics on Accountability Institutions in Ghana, focused on the independence of the Ghana Audit Service and the review of the audit recommendation follow-up process. The Ghana Audit Service, responsible for overseeing how public funds are spent, plays a crucial role in ensuring accountability and transparency in financial management.

Dr. Osae acknowledged the efforts by the government to adequately fund the Audit Service but stressed the need to equally support internal audit systems. He pointed out that a controlled environment is essential for the Audit Service to effectively carry out its mandate, and strengthening internal audit systems would expedite their work and improve public financial management.

The Director General also highlighted the importance of streamlining the disallowance and surcharging regime to ensure accountability in public institutions. He called for the revised Internal Audit Agency Act to be passed by Parliament to streamline the structures of the internal audit system and bring internal auditors under the control and management of the Internal Audit Agency.

The launch of the report brought together representatives from the World Bank Country Office in Ghana, a Deputy Finance Minister, Ghana’s Auditor General, Auditor Generals from Liberia and Sierra Leone, and representatives of various civil society organizations. The assessment made several recommendations to enhance the independence and accountability of the Ghana Audit Service.

Overall, Dr. Osae’s call for strengthening internal audit systems in public institutions highlights the importance of proactive measures to improve public financial management and prevent a ‘rotten’ system. As efforts are made to support the Audit Service, equal attention should be given to enhancing internal audit systems to ensure transparency and accountability in the management of public funds.