Assessment of Internal Audit Practice in Commercial Banks in Ethiopia: The Case of United Bank S.C

No Thumbnail Available



Journal Title

Journal ISSN

Volume Title




Internal auditing plays a critical role in the governance and operation of an organization. When effectively implemented, operated and managed, it is an important element in helping an organization to achieve its objectives. Organizations that effectively use internal auditing are better able to identify business risks, process and system inefficiencies, take appropriate corrective action and ultimately support continuous improvement (Institute of Internal Audit, 2010). Therefore it needs effective implementation and administration. This study therefore sought to investigate the internal audit practice in commercial banks in Ethiopia. Specifically, how the internal audit was functioning in line with the audit work quality, scope of the audit work, the level of independence of the internal audit function and adequacy of competent internal audit staff. The data were collected through questionnaire. To answer the research questions questionnaires were distributed to those who were working in the internal audit department. The study was conducted in city branches of United Bank S.C. The respondents were selected using both probability and non-probability sampling method. The collected data were analyzed by using quantitative method. Commercial banks in Ethiopia have adequate and competent audit staff however, there is a weakness in providing trainings as a result it lacks professionals. The audit work quality of commercial banks is effective in terms of communication of audit findings with little weakness in the follow-up to correct the findings. Commercial banks have to provide continuous training to its employees to cope up with the growing business environment


A Thesis Submitted To The Department Of Accounting And Finance, College Of Business And Economics, Addis Ababa University, In Partial Fulfillment Of The Requirement Of Master Of Science (Msc) In Accounting And Finance March


Adequacy of Competent Internal Audit Staff, Audit Work Quality, Level of Independence, Internal Audit Practices