Determinants of Internal Audit Quality: Evidence from Selected Ethiopian Commercial Banks
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Date
2019-06
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Addis Ababa University
Abstract
Internal audit is an important part of the corporate governance structure within an organization. The main objective of this study is to look at the factors that determine internal audit quality in selected Ethiopian commercial banks. The study used purposive sampling method and covered the head office internal auditors of selected Ethiopian commercial banks. Quantitative research method was adopted in the study. Data were collected by self-administered questionnaire to 128 internal audit department staff of the banks. These questionnaires were constructed in 5-point likert scale, distributed to internal auditors of selected Ethiopian commercial banks. Multiple Regression (OLS) has been employed to regress the data obtained via a questionnaire of a 5-point Likert scale. The result of this study show that adherence to code of ethics, quality assurance practice of IA and management cooperation and trust were strong and has statistically significant effect on internal audit quality. As the regression results shows audit follow-up practices of IA, independence of internal auditors and tight audit time have insignificance effect on internal audit quality. The study recommends that Ethiopian commercial banks must work to ensure the availability of the key factors to achieve the quality of internal audit function. The study also opens avenues for upcoming studies to delve into the similar topic for more in-depth information in Ethiopian commercial banks.
Description
A thesis submitted to the department of accounting and finance, in partial fulfillment of the requirements for the master of science degree in Accounting and Finance
Keywords
Adherence to code of ethics, Audit follow up, Ethiopian commercial Banks, Internal audit quality