Assessment of Internal Audit Practice in the Cases of Ethiopian Airlines Group
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Date
2022-03-22
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A.A.U
Abstract
Internal audit maintains for a business enterprise in the global business environment that can
ensure the safeguarding of the enterprise's assets. Aside from the previously conducted research,
this paper would examine the internal auditing practices of Ethiopian Airlines group. The overall
goal of this study was to evaluate internal audit practices in the airline industry using Ethiopian
Airlines as an example. Specific objectives of this study were to evaluate the overall structure of the
internal audit system, the obstacles that the internal audit encountered, the autonomy of the
internal audit from management, and the actual practice's compliance with standards of the
organization. This study used a descriptive research method with a judgmental or purposive
sampling technique. The target population for the study was employees of Ethiopian Airlines
located at Head Office, Internal audit division. The sample size for this study was 50 from all
employees in the internal audit department and 92% of the target sample was attained through
questionnaires sent. The analysis shows that there is strong internal audit structure and adequacy
across the company and there is independence of the audit section from the company line structure.
This audit report also revealed that there is no freedom of auditors to disclose any audit findings
without prior approval of the management. Finally, a conclusion and recommendation have been
made based on the study`s findings.