Determinants for the Effectiveness of Risk based Internal Audit in Ethio Telecom
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Date
2020-03
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A.A.U
Abstract
The main purpose of this study was to establish the determinants for the effectiveness of risk based internal audit in Ethio telecom. The research used explanatory research design to conduct the study. It also adopted a mix of qualitative and quantitative research methods to collect and analyze both primary and secondary data. The primary data was collected using likert scale questionnaires distributed to internal auditors, risk analysts, and senior managers of Ethio telecom while the secondary data was gathered through documentary reviews. From the results of the study, it was discovered that 55.17% of the variation in the effectiveness of risk based internal audit accounted due to changes on the role of an internal audit function, the risk maturity level of a company, risk analysis and IT competency of internal auditors, risk based audit planning of an internal audit function, and the implementation of ERP in a company. The findings of the study confirmed most of the research hypotheses (H1, H2, and H4). The result demonstrated that all the independent variables are positively associated with effectiveness of risk based internal audit. Based on the magnitudes of the coefficients, the highest and least contribution for the effectiveness of risk based internal audit come from the role of internal audit function and the risk and IT competency of internal auditors respectively. It has been recommended that the Board and the management of Ethio telecom to take additional measures by understanding the combined impact of the variables that add values significantly for the effectiveness of the risk based internal audit in Ethio telecom. It is also advised to them to capitalize the big effect of the role of the internal audit division through the elimination of the weaknesses observed in this regard
Description
A thesis Submitted to the Department of Accounting and Finance in Partial Fulfillment of the Requirements for the Degree of Master of Science in Accounting and Finance
Keywords
Effectiveness of internal audit, Risk based internal audit