The Internal Audit Roles and Financial Discipline of the Technical Universities in Ghana: The Moderating Role of Effective Leadership

Abstract

This study examined the relationship between internal audit roles and financial discipline, with effective leadership as a moderating factor, in Ghana’s technical universities. Using an explanatory research design, data were collected from 127 key officeholders across the Technical Universities in Ghana. The findings show that internal auditors play a pivotal role in promoting financial discipline through strategic advisory services, operational efficiency, risk management, reporting, and compliance enforcement. More importantly, the results demonstrate that effective leadership practices centred on integrity, transparency, accountability, strategic vision, and sound financial decisions significantly strengthen the positive effects of internal auditing on financial discipline. The financial discipline remains a significant challenge, as evidenced by ongoing issues such as fund misallocation, procurement manipulation, weak budgeting practices, ineffective debt management, and the neglect of internal audit recommendations. The study recommends that technical universities complement national policies and legal frameworks with internally developed financial discipline policies tailored to their specific contexts. Central to this should be the establishment of a comprehensive Code of Ethics for Financial Discipline, with explicit provisions requiring strict adherence by leaders and senior officials and enforcing stringent penalties for breaches. Such context-specific policies, aligned with national directives, will reinforce ethical conduct, strengthen financial integrity, and promote sustainable accountability in technical universities.