The Nexus of Internal Audit System, Cultural Complexity, and Corruption Control in Ghana’s SOEs

This study investigates the interplay of internal audit system, cultural complexity and corruption control in Ghana’s state-owned enterprises (SOEs), examining how these factors influence anti-corruption efforts. Employing a quantitative and cross-sectional survey design, we gather data from 1150 internal auditors and use EFA, descriptive statistics and macro-process modeling for analysis. The results show that internal audit effectiveness, quality, independence, and resources are all positively related to corruption control (prevention, detection and response), with internal audit independence having the greatest effect on corruption control. Power distance culture (PDC) moderates these relationships, but the direction and significance of the moderation vary across the different aspects of corruption control. This study highlights the importance of strengthening internal audit system and addressing cultural barriers to enhance corruption control in SOEs, informing governance strategies in emerging economies. It has demonstrated that PDC plays a complex role in shaping the effectiveness of internal audit system in controlling corruption. Thus, this research contributes to the limited literature on the intersection of internal audit, PDC and corruption control in a developing country context, offering insights for policymakers and practitioners.