Government injects legislative, policy reforms into internal auditing

Dr Eric Oduro Osae, the Director-General of the Internal Audit Agency (IAA), said the Government has initiated major legislative and policy reforms to restructure internal auditing and inject fiscal discipline into the management of public funds.

The enactment of the IAA Act, 2003 (ACT 658) and a Public Financial Management (PFM) Act 2016 (ACT 921) are to strengthen the position and practice of internal audit in the country.

Dr Osae made this disclosure in a speech read on his behalf at the opening of a two-day training in Ho on Monday for Public Institutions on the National Adoption of the 2024 Global Internal Audit Standards (GIAS).

Also for national adoption are the International Auditing Public Sector Accounting Standards-based Financial Statements and Application of the (PFM) Commitment Control Checklist system.

He announced that work was progressing steadily to finalise the Internal Audit Restructuring process and the IAA Amendment Bill, 2024, expected to rationalise conditions of service and provide the framework for professional effectiveness.

The Government had made commitments to implementing some interventions in the 2024 Economic Policy and Budget Statement to improve accountability and transparency in the management of public funds, he said.

These include verification and validation of arrears identified as of December 2022 before payments are made, undertake expenditure and procurement control measures, enforce sanctions under the PFM ACT and strengthen internal audit functions.

Others are the use of GIFMIS in all transactions to prevent unbudgeted expenditure, alignment of quarterly budget allotments with cash flow forecast, revision of cash plans for quarterly basis and all ministries, departments and agencies to use GHANEPS for procurement among others.

He commended Internal Auditors in the public sector for their hard work and professionalism to keep the economy running despite the difficulties.

Dr Osae said auditors had performed creditably in the first quarter of 2024 compared to same period in 2023, with majority submitting their 2024 Risk-based Internal Audit Work-plans on time.

A total of 157 work-plans were in default as against over 200 submitted at the close of deadline in the same period of 2023, which captured four Ministries, 59 Departments and Agencies, 32 State Owned Enterprises or SIGA institutions, and 44 GTEC/tertiary institutions and 21 metropolitan, municipal and district assemblies.

He entreated internal auditors to support external auditors, management of institutions and audit committees to ensure adherence to sound management practices.

Key of the reforms was the set-up of statutory audit committees for over 99 per cent public sector institutions and review in 2023 of new guidelines for effective functioning of committees.

Dr Osae said the national adoption of the new International Professional Practices Framework (IPPF) of GIAS issued by the IAA Global and the move from conventional pre-auditing to full scale risk-based audit system was another leg.

On National Adoption of Global Internal Audit standards in Ghana, Mr Benjamin Adjetey, Director, Training, Research, Monitoring and Evaluation, IAA, said the Global Internal Audit Standards or the new International Professional Practices Framework adopted was to guide public sector internal audit practice was in line with Global standards.

The module objective was to provide a roadmap for adoption of the Global Internal Audit Standards by IAA for public sector internal audit in accordance with the Internal Audit Agency Act, 2003 (ACT 658) effective January, 2025.

He urged internal auditors not to compromise ethical professional standards governing their work.

Participants include heads of public institutions, directors and staff of the various audit units, principal spending officers and account holders as well as audit committee members.