The Impact of Auditing In Controlling Financial Misstatement

Abstract

A key aspect of an internal auditor's job description now includes working closely with management as a consultant, supervisor and partner. With this change in emphasis, internal auditors are now expected to help covered organizations with misstatement prevention, detection and reduction. Aiming to detect, prevent, and mitigate misstatements at covered organizations, this study investigated the functions of internal auditors in Ghana's Upper West Region. Individuals working as internal auditors for businesses in Ghana are the subjects of this research. Using descriptive statistics, the characteristics of the respondents were examined. It was discovered that systems of internal control, risk management and governance, laws, regulations, standards, processes, and procedures, as well as reporting suspected misstatement or misuse of public funds to the appropriate authorities, had an impact on internal auditors' capacity to identify, prevent, and minimize misstatements. Indicators of misstatements such as corrupt practices, fraudulent expense reimbursement and cash on hand misstatement has increased in covered entities over the last three years, according to the study. In contrast, fraudulent billing, cheque tempering and payroll fraud have decreased. The frequency of false claims, non-cash misstatements, fraudulent registered disbursements, cash theft, and skimming has not changed significantly over the past three years.According to the research's professionals, it is essential for the management and internal auditors of covered organizations to collaborate in order to proactively avoid financial misstatements.