Internal Audit, Corporate Governance and Financial Control System in Kenema Government Hospital, Sierra Leone

Internal audit plays a vital role in the corporate governance process. The perceived poor internal audit practices, mainly caused by a lack of independence, have resulted in sound corporate governance practices evading the company; thereby leading to the abysmal performance of the majority of companies. The study, therefore, seeks to ascertain the practices of internal audit and corporate governance at Kenema Government Hospital with a specific focus on ascertaining the existence of internal financial control systems, assessing the level of compliance with financial management regulations and identifying the consequences for non-compliance with such regulations. The study adopted the purposive sampling technique, a sample size of twenty-five (25) respondents comprising accounting, auditing, and health and administration staff. Interview guides were used as the main instrument for the collection of data. The findings of the study revealed that effective internal audit practices and a sound corporate governance framework enhanced the hospital’s systematic, comprehensive approach to internal control, which was consistently documented, understood at the management level and communicated at all levels of the hospital. Nevertheless, there still existed some inconsistencies concerning how internal controls were implemented and enforced and all responsibilities were not clearly defined. Again, the independence of internal auditors in the hospital was greatly compromised since, most of the time, they are considered employees of management. Hence, the views of internal auditors reporting to the board are merely a formality to satisfy corporate governance requirements.