The Role of an Internal Auditing in Achievement of Organizational Objectives in the Case of Commercial Bank of Ethiopia
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Date
2025-06-05
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A.A.U
Abstract
This study was examined the role of internal auditing in achievement of organizational goals,
in the case of the Commercial Bank of Ethiopia. This study focuses research questions
related to the responsibilities of auditing, their contribution to risk management, corporate
governance, and internal control processes, the effect of auditing independence on audit
quality and organizational objectives, and the challenges faced in carrying out auditing their
duties. The project research uses a descriptive research design, merging qualitative and
quantitative approaches. The primary source of data collection was through questionnaires
to employees of the Commercial Bank of Ethiopia, and from secondary sources such as
current documents and reports. The sample size consists of 70 employees, determined using
Israel’s formula. Both open-ended and close-ended questions, is questionnaires from primary
data collection method. STATA was used to analyze the collected data, using descriptive
analysis techniques. Internal auditing helps to identify the actual and potential risk, helps to
fill the process of decision making and policy development etc. Respondent express their
response from neutral to strongly agreed for role of internal auditing if there is internal
auditing independence, overall internal control process, overall corporate governance and
risk management process. This implies internal auditing have higher role for achievement of
organizational objective of commercial bank of Ethiopia if there is internal auditing
independence, overall internal control process, overall corporate governance and risk
management process. Internal auditing is expected to find creative ways to cope up with
dynamic environment that will add value to the organization. This is achieved mainly when
there is internal auditing independence, overall internal control process, overall corporate
governance, and Risk management process. Internal auditing have better role for
achievement of organizational objective if there is internal auditing independence, overall
internal control process, overall corporate governance and risk management process.
Internal auditing independence has better value for achievement of organizational objectives
in the case of the Commercial Bank of Ethiopia. Auditing in dependency helps to avoid
misstatement, subjectivity of audit report, biased, conflict of interest, hide of important fact,
deny of information and records etc. so commercial bank of Ethiopia should protect the
in dependency of auditing to achieve organizational objective and improve their role.
Commercial bank of Ethiopia should also improve internal control process of internal
auditing, overall corporate governance and risk management process of internal auditing.