Impact of internal control systems on financial irregularities in local governments
insights from the developing world
DOI:
https://doi.org/10.23925/2179-3565.2023v15i2p16-32Keywords:
Internal Controls, Local Governments, Financial Irregularities, Public SectorAbstract
This study investigates the impact of internal control systems on financial irregularities in 11 municipalities spread across 7 regions in Ghana. Using a descriptive research design and a quantitative approach, data was collected through a structured questionnaire. The study established challenges hindering the implementation of internal control systems as; inadequate resource allocation, unsatisfactory staff rewards, unnoticed misconduct, and collusion among staff. The findings provide valuable insights for management and policymakers in the public sector, offering recommendations to enhance operations by strengthening internal control systems.
Recommendations include adopting best practices, providing additional resources and training, integrating internal controls with risk management, conducting regular staff performance audits, and enacting laws and regulations to enforce internal control implementation and report financial irregularities. The study depends hugely on self-reported quantitative information, audit reports, local government reports, and literature. Future studies should consider mixed methods approach to the study. This will offer an opportunity to collect qualitative data to explain the observed patterns.
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