External Auditors' Impact on Corporate Governance of Unlisted Firms: A Developing Country Perspective

Abstract

Purpose: The purpose of this study is to examine the impact of external auditors on the corporate governance of unlisted firms in Ghana.Design/Methodology: The study adopts a quantitative research survey design approach. Closed-ended questionnaires were distributed to 485 respondents using the purposive and convenience sampling method. Inferential statistics were conducted on the data collected using IBM SPSS Statistic v23.Findings: The study found that the presence of boards, familiarity with corporate governance codes, and adherence to the code of conduct are prevalent in unlisted firms in Ghana. Also, the study found that the role external auditors play in unlisted firms in Ghana has a positive and significant impact on corporate governance.Practical Implications to Business or key stakeholders: The findings of the study highlight the importance of establishing effective boards, adhering to corporate governance codes, and actively engaging external auditors to strengthen governance practices. Stakeholder engagement, training, risk management, and policy enhancements are also crucial in fostering transparency, accountability, and sustainable business growth. Implementing these implications can enhance corporate governance, build stakeholder trust, and promote long-term organizational success.