European Journal of Accounting, Auditing and Finance Research (EJAAFR)

EA Journals


Factors Influencing the Effectiveness of Internal Control Systems: A Case Study of Commercial Banks in Ghana (Published)

Citation: Divine Vulley (2022) Factors Influencing the Effectiveness of Internal Control Systems: A Case Study of Commercial Banks in Ghana, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 4, pp.63-75

This study examines the factors influencing the effectiveness of internal control systems in the banking industry in Ghana. The study adopted the quantitative approach using the survey design to obtain data from 130 participants from selected Commercial banks in Ghana. For data analysis, Statistical Package for the Social Sciences (SPSS version 24) was utilized. A number of descriptive statistical tests and in a combination of Exploration Factor Analysis (EFA) and Confirmation Factor Analysis (CFA) was used. The statistical tools used include mean, standard deviation, frequency and Ordinary Least squares (OLS) regression. The study found critical factors driving Internal Control system (ICS) within the banking sector in Ghana to include the environment control, risk assessment, control activities, information communication technology (ICT), and monitoring activities. The study discovered that some of the ways required to improve ICS include consistent revision of policies and procedures as well as provision of adequate training and communication on ICS to staff. It is also recommended that employees should be involved in the development of control mechanisms to make them own the system which will promote its enforcement to influence operational efficiency. 

Keywords: Commercial Banks, Effectiveness, Ghana, Internal Control System

International Financial Reporting Standard (IFRS) Adoption and Revenue Generation: A Descriptive Study of Nigeria and Ghana (Published)

Years after the inception of International Financial Reporting Standards (IFRS), most countries of the world now permit its utilization in their countries including West Africa countries such as Nigeria and Ghana. However, some countries of the world still have not subscribed to the IFRS situation. It is thus necessary to examine the situation of things with the countries that have adopted to know if the adoption has contributed to their growth favourably or adversely. This study adopted expost facto research design to examine how IFRS has influence Revenue base of the selected countries (Nigeria and Ghana). The study concludes that it is in the best interest of developing countries to adopt IFRS. The IFRS ship is already making its way around the world as a single set of high quality global accounting standards and also facilitating revenue flow into the country. Therefore, the earlier other countries come on board, the better for them.

Keywords: Adoption, Ghana, International Financial Reporting standard, Nigeria, Revenue Generation, descriptive study

Ensuring the Effectiveness of Internal Audit Units in Public Sector Institutions in Ghana- MDAs/MMDAs in Perspective (Published)

The article identified and analysed generally accepted factors or best practices that ensure or indicate the effectiveness of an Internal Audit Unit in public and private sector organizations. The aim was to use those factors identified from literature to design a model (conceptual framework) that can be used by public sector organisations in Ghana for measuring and ensuring the effectiveness of Internal Audit Units. The method used, which was only qualitative, was to search through empirical, legal and regulatory and professional literature for those factors that were known to ensure the effectiveness of IAUs. Eight important factors that became the parameters of a new model were identified.  It was concluded that there are sufficient provisions that create the desired efficiency of Internal Audit Units in Ghana given the legal and professional environment. It was recommended that MMDAs and the Internal Audit Agency should adopt the model developed here to measure the effectiveness of Internal Audit Units in their organisations.


Keywords: Ghana, Internal Audit Unit; effectiveness; MMDAs

Determinants of Agribusiness entities loan default in the Tamale Metropolis of Ghana (Published)

This paper explores determinants of loan default by Agribusiness entities in the Tamale Metropolis of Ghana. Data to examine the causes of loan default was obtained from owners through structured questionnaire and descriptive statistics, Kendall coefficient of concordance and logistic binary regression was used to analyse the data. Financial variables were more significant than demographic characteristics of agribusiness entities to cause loan default. This suggests financial institutions must apply appropriate adjustments to financial variables in order to minimize loan default risk considering the agricultural sector.

Keywords: Credit Constraints, Ghana, Loan Default, Tamale, agribusiness, logit model


Communal market system of mobilizing resources or funding has been with the indigenous people in the past. In Africa, particularly in Ghana it has been with the traditional people up to today. As we find it had to move the economy as a whole up, the indigenous people through this means are making it up in life. The problem has been with the impulsion of the western capitalism, which thrives on greed and individualism. This article gives reasons why Ghana should introduce a second financial market with traditional flavor. It recommends the modification of the old land marks, nnoboa, with modern technology which thrived through trust, communality and reciprocity that worked before the invasion of the land by the west to force us into capitalism

Keywords: Capitalism, Development, Ghana, Market, Nnoboa, synergy


Micro and small scale enterprises have been accepted worldwide as instrument of economic growth and development. No wonder that government, particularly in the developing countries has made tremendous efforts and establish policies to enhance the capacity of micro and small scale enterprises (MSEs). However, despite government institutional and policies support to enhancing the capacity of small and medium scale enterprises, small and medium scale enterprises has fallen short of expectations. This, then, generated serious concern and skepticism on whether SMEs can bring about economic growth and national developments in Ghana. SMEs are faced with significant challenges that compromise their ability to function and to contribute optimally to the economy. Most business enterprises in Ghana by classification are grouped under micro and small scale enterprises, hence, the scope of study. The phenomenal growth of small and medium enterprise in Ghana is mainly due to the people’s quest to be self-employed and not because it is easy to establish or manage. Financial constraints and lack of management skill hamper the efficient performance of micro and small scale enterprises in Ghana. In view of this, we recommend that government and other non-governmental organization should regularly organize seminars for potential and actual small and medium enterprise operators on how to plan, organize, direct and control their businesses, and that micro, small and medium enterprises operators’ should device effective marketing strategies and good management customers relations at all times.

Keywords: Development, Ghana, MSE, Problems, Prospect


This empirical study is to find out whether the yield curve for government debt securities with maturities of one year or less contains significant information about future changes in real interest rates. At the various spreads isolated, there is overwhelming evidence that the yield curve wields significant explanatory power in future real interest rate-changes. These results from Ghana show that the yield curve could serve as a powerful forecasting tool in monetary policymaking as well as asset pricing by central bankers and portfolio managers

Keywords: Ghana, Government, Real Interest Rate, Yield Curve


The purpose of this research is to examine the degree to which banks in Ghana use risk management practices and corporate governance in dealing with different types of risk. A modified questionnaire, divided into two parts was developed and administered to the selected banks’ board of directors, senior risk management officers and selected staff. The first part of the questionnaire covered five aspects: understanding risk and risk management, risk identification, risk assessment and analysis, risk monitoring, and corporate governance and risk management practices. This part included 32 closed-ended questions based on an interval scale. The second part consisted of two closed-ended questions based on an ordinal scale dealing with two topics: methods of risk identification, and risks facing the sampled banks. The result of the study indicated that, Board of Directors, senior staffs and not all staff are actively involved in risk management and the most important types of risk facing the sampled banks are credit risk, operating risk, solvency risk, interest rate risk, and liquidity risk. The study also found out that the sampled banks are efficient in managing risk

Keywords: Commercial Banks, Corporate Governance, Ghana, Management, Risk

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