Abstract: In the
wake of the 2007 financial crises on the corporate lessons from the financial
crises OECD (2009) concluded that the crises were largely the result of
failures and weaknesses in corporate governance arrangements. This study is
investigated the impact of audit practices on the financial performance of
listed banks in Ghana. Data was gathered from eight (8) listed banks on the
Ghana Stock Exchange (GSE). Secondary data was collected from annual reports,
financial statements, and corporate governance disclosures of the banks over a
period of ten (10) years between 2013 and 2022. The findings reveal that the
audit practices of the banks showed considerable developments throughout the
period under review. Over the years, the banks continuously improved their
audit practices, as evidenced by the scores reported in 2022, where the minimum
score among the banks rose to 90%, with some achieving a perfect score of 100%.
The correlation and regression results demonstrated a weak yet significant
positive relationship between audit practices and the financial performance of
the listed banks. This suggests that improvements in audit practices, guided by
directives from the SEC, are associated with enhanced financial performance, as
reflected in better ROA and ROE. The study recommends that future research
should extend the time frame of studies to provide a more comprehensive view of
how corporate governance and audit practices impact financial performance over
longer periods.
Keywords: Audit
Performance; Financial Performance; Ghana Stock Exchange