17320747 sample research proposal

SAMPLE RESEARCH PROPOSALPROMOTING GOOD GOVERNANCE IN PUBLIC INSTITUTIONS OF GHANA: THE ROLE OF THE INTERNAL AUDITOR

5/5/2009 SCHOOL OF BUSINESS, UNIVERSITY OF CAPE COAST, GHANA ISHMEAL OFORI AMPONSAH (STUDENT)

Table of ContentsIntroduction.................................................................................................................................................1

Background of the Study.........................................................................................................................1

Problem Statement.................................................................................................................................2

Management Question:.......................................................................................................................2

Research Questions:............................................................................................................................2

Hypothesis:..........................................................................................................................................2

Objectives................................................................................................................................................3

Significance of Study................................................................................................................................3

Literature Review........................................................................................................................................4

Definition of Internal Audit..................................................................................................................4

Role of the Internal Auditor in governance.........................................................................................5

Methodology...............................................................................................................................................6

Research Design..................................................................................................................................6

Population...........................................................................................................................................6

Sampling and Sampling Technique......................................................................................................6

Data Collection....................................................................................................................................7

Data collection instrument..................................................................................................................7

Data Analysis.......................................................................................................................................9

Timescale.............................................................................................................................................9

Limitations...................................................................................................................................................9

References.................................................................................................................................................10

Research proposal – SB/MAC/08/0005 Page 1

Promoting Good Governance in Public Institutions of Ghana: The Role of the Internal Auditor

Introduction

All over the world there is a realization that the Internal Audit activity has the potential to

provide hitherto unparalleled services to management in the conduct of their duties. This

potential has been turned into a challenge and embodied in the new definition of Internal

Auditing from the Institute of Internal Auditors (the IIA).

Background of the Study

The Government of the Republic of Ghana by the Internal Audit Agency A ct, 2003 (Act 658)

established the Internal Audit Agency “as an apex oversight body to co-ordinate, facilitate and

provide quality assurance for Internal Audit activities within the public sector” (Section 16 of

Act 658). The Internal Auditor’s value lies in how well he has been able to contribute to the

achievement of the overall organisational objective. The Internal Auditor should constantly seek

to make himself relevant to his organisation by providing information that will make

management take decisions that impact positively on their ability to achieve the organisational

goals.

However, according to research and surveys conducted by Deloitte & Touche (2004) and the

Internal Audit Agency of Ghana (2006), much of the work of Internal Audit has been very

restrictive in terms of scope. This needs to be addressed if the required return on investment in

the Internal Audit activity is to be attained.


Problem Statement

Public sector managers do not support Internal Audit. The Internal Audit function in the

Ghanaian public sector faces a perception and, to some extent, a credibility problem as a value-

adding unit of the organisation. The Internal Audit Agency (2006) believes that the importance

of Internal Audit is "shrouded in obscurity”. This unfortunate background continues to play

down the importance of Internal Audit as a key function that can strengthen the oversight

responsibility of the governing body. This reflects in the management attitude towards the

Internal Auditor. Most often than not the budget of the Internal Audit Unit, if any exist at all, is

woefully inadequate to enable them meet the resource requirements of their annual audit plans.

Internal Auditors are seen more as fault finders rather than solution providers and partners in the

Government’s strive for organisational excellence.

Management Question: Why do public sector managers fail to support the Internal Audit

function and what can be done to curb it?

Research Questions:

1. What account for the low support for Internal Audit by public sector managers?

2. What actions are necessary to get the support of management of internal auditing in the

public sector?

3. Is there a link between the quality of service the Internal Auditor provides for his

organisation and the attitude of managers towards the Internal Audit function?

Hypothesis:

There is no relationship between the quality service Internal Auditors provide for their

organisations and the attitude of managers towards the Internal Audit function.


Objectives

The objectives of the research project are to:

1. Examine the factors responsible for the low support for the Internal Audit Activity by

managers of public institutions.

2. Identify specific actions required to secure support of managers for the Internal Audit

Activity.

3. Establish the relationship between quality of service and support of managers for Internal

Audit.

Significance of Study

The significance of the study will be to:

1. Improve public understanding of the role of the Internal Auditor in the achievement of

organisational objectives.

2. Improve literature on public sector Internal Auditing in Ghana.

3. Fulfill the MBA requirement.


Literature Review

The Government of Ghana has taken a proactive step in establishing the Internal Audit Agency

(The Agency) by an Act of Parliament in 2003. The IAA is mandated to co-ordinate, facilitate

and provide quality assurance for internal audit activities within the public sector institutions (the

IAA Act 2003, Act 658). The Agency has formulated three strategies which it is currently

pursuing to improve the image of the Internal Audit function in the public sector. These are as

follows:

1. Professional Practice Framework which aims at developing key documents and templates

for use by the Internal Audit function such the Internal Audit Regulations, Internal

Auditing Standards, Audit Programmes Internal Audit Charter and Annual Audit

Planning templates.

2. Human Resource Development which seeks to facilitate the recruitment, training and

development of internal auditors to be proficient in applying internal audit standards,

procedures and techniques in performing engagements.

3. Quality Assurance and Improvement which addresses the issue of continues improvement

in the performance of the internal audit activity.

Definition of Internal Audit

According to the Institute of Internal Auditors, “internal auditing is an independent, objective

assurance and consulting activity designed to add value and improve an organization’s

operations. It helps an organization accomplish its objectives by bringing a systematic,


disciplined approach to evaluate and improve the effectiveness of risk management, control, and

governance processes” (March 2007).

This definition actually seeks to demonstrate the depth and breadth of the internal audit activity

within an institution as against the previous orientation of reviewing payment transactions over

the years. Modern internal audit covers (or should cover) all activities of the organisation.

Therefore the scope of internal audit is no longer restricted to the processes and systems in the

accounts and finance function.

Role of the Internal Auditor in governance

The value of the modern day internal auditor lies in his ability to help management to achieve

its’ objectives. According to a research jointly conducted by Deloitte & Touche and the Institute

of Internal Auditors, U.K., (2004) “improved attitudes toward internal audit are built on a belief

that internal audit functions are creating greater value for their organisations”.

Governance refers to all the strategic plans of the organisation to demonstrate its commitment to

quality and excellence. They reflect the strategic thinking and orientation of the Board and

Management to achieve the objectives of the organisation. However, every decision and

programme carries with it an element of risk of non-achievement, due to uncertainties associated

with the implementation of programs. Some of the risks are reputational, financial, operational,

and information technology related. It would therefore be appropriate to have a structured way of

identifying events that would impact negatively on the ability of management to achieve their

objectives and also to take advantage of opportunities and other events that could be leveraged to

achieve those same objectives. i.e. an integrated risk management framework that is embedded

in the planning process of the organisations. Internal Auditors are experts in creating and


promoting a risk management culture that is necessary to the effective implementation of the risk

management framework. They can also assist in monitoring the framework.

Methodology

This section presents an overview of the methods to used in the study. Areas covered include the

research design, population, sample and sampling techniques, data collection and analysis.

Research Design

The study will involve the evaluating the role of Internal Auditors in the good governance of the

organisations in the public sector. Consequently, the research will be designed to achieve the

objectives set out by the researcher.

Population

The public sector of Ghana is the biggest employer of Internal Auditors and involves several

organisations including Ministries, Departments and Agencies (MDAs). The public sector also

includes Metropolitan, Municipal and District Assemblies MMDAs). The targeted population

for the study thus includes the following:

1. Chief Directors and Directors of all MDAs.

2. Coordinating Directors, Finance Officers and other staff of MMDAs.

3. Heads and staff of internal Audit Departments (IADs) of MDAs and MMDAs.

Sampling and Sampling Technique

It obvious from the definition of the population above that a census is not feasible in this study.

Accordingly, the researcher will adopt the survey type of research in which a sample from the


target population will be used for the study. In total, a sample of 185 elements will be selected

from a targeted population of 300. Details of the sample are as follows:

15 Chief Directors and 30 Directors of MDAs.

20 Coordinating Directors, 20 Finance Officers and 20 other staff of MMDAs.

40 Heads of IDAs and 40 Internal Auditors of MDAs and MMDs.

The study will adopt a multistage stratified sampling method to select elements. First, the

population will be divided into MDAs and MMDAs. Next, the MDAs will be grouped into

Ministries, Departments and Agencies and the MMDAs into Metropolitan, Municipal and

Districts. This will ensure a fair representation of each group of institutions since their

operations are significantly different.

Data Collection

The focus of study is on attitudes and perception and the importance of primary data cannot be

over-emphasised. However, secondary data will also be collected to augment the studies.

Before the actual data collect the researcher will collect introductory letter from the School of

Business of the University of Cape Coast to the sampled institutions. The initial visit to the

selected institutions will therefore be to introduce himself, familiarize himself with those

institutions as well as seek their consent for the study.

Data collection instrument

The researcher will collect data by administering a questionnaire. The questionnaire will use

structured questions, consisting of approximately 20 questions divided into three sections ‘A’,

‘B’, and ‘C’. Section ‘A’ will consist of seven questions seeking to answer the first research


question. Section ‘B’ will consist of six questions covering the second research question

whereas Section ‘C’ will consist of questions to test the hypothesis and also answer the third

research question.

Sample investigative questions: Table 1 below provides samples of the investigative

questions.

Table 1: Sample Investigative Questions

Section Research Question Investigative Questions

‘A’ What account for the low

support for Internal Audit by public sector managers?

Are you aware of the role of the Internal Auditor in you organisation?

How important do you think is the role of the Internal Auditor to your organisation?

In your view, is the Head of Internal Audit placed appropriately on the organisational chart?

‘B’

What actions are necessary to get the support of management of internal auditing in the public sector?

Generally, how will you rank the relevance of Internal Audit in your organisation?

What reasons account for your answer above?

What do you consider the three most important actions needed to promote Internal Auditing in the public sector?

‘C’

Is there a link between the quality of service the Internal Auditor provides for his organisation and the attitude of managers towards the Internal Audit function?

What do you consider to be the highest achieve of your internal audit department?

Would agree to the statement that one’s perception of the Internal Auditor is influenced by how they perceive his role in the company?

Will your attitude towards Internal Audit be different if they help you achieve your objectives?


Most of the structured questions will be the close-ended type and respondents will be asked to mark the appropriate box matching the correct answer. Other questions, however, will require respondents to give opinions.


Data Analysis

The responses to the structured close-ended questions will be rated in percentages. The percentage of respondents for each alternative will be given and analysed. The data collected will be analysed using the computer software known as Statistical Package for Service Solution (SPSS).

Timescale

June – July 2009: review of literature

August 2009: draft literature review

September 2009: agree research strategy with supervisor

October 2009: agree formal access to organisations for collection of primary data

November 2009: compile, pilot and review questionnaire

December 2009 - January 2010: administer questionnaire

February 2010: final collection of questionnaire

March 2010: data analysis

April – May 2010: final writing of project report.

Limitations

The researcher cannot cover all the ten regions of Ghana. The research will therefore be restricted to five

out of the ten regions.


References

The Institute of Internal Auditors (the IIA). (2007), The Professional Practices Framework. Florida, U.S.: The IIA Research Foundation.

Spencer, P. K. H. (2003), The Internal Auditing Handbook. U.K. City University Press.

Deloitte & Touche Enterprise Risk Services & Institute of Internal Auditors – UK and Ireland

(2004), The Value Agenda. Available at www.iia.org.uk, (Accessed on 14 April 2009).

Internal Audit Agency, Republic of Ghana. (2007), Annual Report to the Office of the President. Accra: the IAA

Internal Audit Agency, Republic of Ghana. (2006), Championing Excellence in Universities of Ghana: The Role of the Internal Auditor. A paper presented to the Association of the Internal Auditors of the Universities of Ghana at their annual congress in 2006. Accra: Ransford Agyei, Deputy Director-General.

Saunders, M., Lewis, P., & Thornhill, A. (2007), Research Methods for Business Students (4th ed.) Harlow, England: FT Prentice Hall

Blumberg, B., Cooper, D.R., and Schindler, P.S. (2005) Business Research Methods, Maidenhead, McGraw-Hill


http://www.iia.org.uk/

17320747 sample research proposal

Documents

research proposal sb mac 08 0005

internal audit activity

internal audit function

internal audit agency

internal audit activities

provide quality assurance

promoting good governance

sample investigative questions