Determining the Effectiveness of Internal Auditing in Our Churches. Case Study: The Presbyterian Church of Ghana, Christ the King Congregation

ABSTRACT

Just the word "audit" makes shivers go up your spine and your heart race faster. However, a church audit is a process that provides reasonable assurance that good stewardship is being used in handling and accounting for the funds and other assets of your organization and since contributions are the life blood of your organization….why wouldn't you want to ensure their proper handling?

Audit comes from a Latin word “audire” meaning to hear. Auditing started way back in the 19th century. Auditing means an independent examination and expression of opinion on the financial statements of an enterprise by an appointed auditor in pursuance of his appointment and in compliance with the relevant statutory obligations.

The main objectives of the study was to find the effectiveness of internal audit committee in our churches and also to find the strength and weakness of the internal auditing structure of the Presbyterian church of Ghana Christ the king congregation and also to give out the necessary recommendations to help improve the church in general.

In coming out with the research both primary and secondary data was used. In getting access to both data questionnaires were administered to a number of 30 people of which 24 were returned to the church consisting of the members, auditing committee members, and some session members of the church.

Prior to the findings of the study and analysis of the data derived from the questionnaires administered, the study took an in-depth look at:

I. The definition of Audit, the types of audit and their differences, the Audit Process, internal control, internal audit,

II. Further, the study analysed the method employed in gathering data for the research. These included choice of the population and sample for the study, research instrument, and the research design that was used.

III. The research brought to light that majority of the members are very much aware of the church internal auditing committee and their independence they have, issuing of audit report and their benefit to the church,

The study also recommends that workshop on auditing should be organised for the members and the audit committee to help improve the internal auditing and its effectiveness in the church.