Assessing the Effectiveness of Internal control systems in Ghana’s Energy Sector: a Study on the Electricity Company of Ghana

The study aimed to assess the effectiveness of internal control systems in the Electricity Company of Ghana (ECG). The study adopted a qualitative design, and an interview guide was used to collect data from 15 respondents in ECG. Thematic analysis was used to analyze data, and this allowed for an in-depth scrutiny of operational, financial, and compliance dimensions of ECG’s internal control systems. The study also revealed that ECG’s internal controls significantly enhance operational efficiency, financial stability, and regulatory compliance by allowing workflow streamlining, optimizing resource allocation, and enhancing accountability through segregation of duties and regular audits. Further, technological innovation was confirmed to have a significant impact on the effectiveness of ECG’s internal controls, with automation enhancing efficiency and financial transparency, while regulatory changes ensured compliance. However, the study also found that there are significant challenges such as fragmented technological integration, resistance to change, and resource constraints that compromise ECG’s control effectiveness. Therefore, the study recommended that ECG needs to prioritize the full integration of digital systems to allow real-time monitoring, financial reporting accuracy, and streamlining of control activities, thereby enhancing governance, operational efficiency, and regulatory compliance.