Assessing the Balance Score Card of the Internal Audit Performance-Value Addition or Destruction: An Empirical Study of Firms in Sekondi-Takoradi, Ghana

Abstract

The internal audit function is expected to serve as the “moral conscience” and “resource protector” of organisations. The question is are they? The profession have been facing a lot of criticisms especially in the mist of spectacular collapses of some major global brands due to fraudulent practices, financial irregularities and creative accounting practices. More also the rapid and drastic transformation of the business environment necessitates an investigation as to whether the performance of the internal audit function is coping with these changes and also adding value to organisations. This study aims to critically analyse and assess the value-added performance of the internal audit function through the use of the balance score card methodology in the mist of the turbulence and volatile business landscape confronting the internal audit profession. The study employed the survey method where a forty questions well-structured questionnaire was designed based on the balance score card approach. These questionnaires were sent to internal auditors and non-internal auditors in nine organisations in Sekondi-Takoradi Metropolis in Western Region, Ghana. The study revealed that most respondents do not perceive the internal audit function as providing value-addition services to their organisations based on IIA’s internal audit performance assessment criteria.

Keywords: Internal Audit, Institute of Internal Auditors (IIA), Balanced Score Card, Value-Addition, Performance Assessment. Sekondi-Takoradi.