Browsing by Author "Solomon Dessye"

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    Internal Audit Practice and its Effect on Company Performance: Case Study in Ethiopian Shipping and Logistics Service Enterprise
    (Addis Ababa University, 2019-03) Solomon Dessye; Habtamu Berhanu
    Theoverall objective of this study was to assess internal audit practice and its effect on company performance with focus to Ethiopian Shipping and Logistics Service Enterprise. The specific objective includes examining the effect of risk management practice and assessing the effect of internal control system in enterprise performance as well as describing the internal audit practice of the enterprise. The research used both explanatory and exploratoryresearch methods. The primary data was collected using likert scale questionnaires distributed to management members and internal audit department staffs and secondary data through document review of internal audit policy and charter and internal audit report. The dependent variable was company performance measured in terms of profitability and the predictor or independent variables were risk management process, internal control system and internal audit practice. The target population was 90both from management and internal audit staffs. The researcher utilized purposive sampling techniques to select the participants. The descriptive statistics was used to analyze the internal audit practice of the enterprise and inferential analysis (multiple regression analysis) to determine the cause and effect relationship between internal audit activity and organizational performance and to test typothesis.According to the regression output the internal audit practices affect the company performance significantly and positively. The remaining two variableswere positively related with company performance but their contribution was statistically insignificant. All these three independent variables are making 41.98%of the contribution for company performance. Thus, the researcher recommended that the enterprise managements and board of directors should work closely with the internal audit department,provide ppropriateinformation and facilitating all the necessary short and long term trainings indifferent disciplines that would enable the internal audit staffs to perform the value adding activity within the enterprise. The internal audit department should alsoapply the standards available in the internal audit policy and charter such as performing risk assessments annually and their scope of workshould be extended to enterpriserisk management process. Moreover,the activity of internal audit should be assessed externallyby an independent reviewer as per the company policy.