Assessment of Effective Internal Audit Practice: The Case of Local Construction Companies in Addis Ababa
| dc.contributor.advisor | Sewale, Abate (Phd) | |
| dc.contributor.author | Tsegaye, Hagos | |
| dc.date.accessioned | 2020-10-14T12:38:13Z | |
| dc.date.accessioned | 2023-11-04T07:57:50Z | |
| dc.date.available | 2020-10-14T12:38:13Z | |
| dc.date.available | 2023-11-04T07:57:50Z | |
| dc.date.issued | 2020-03 | |
| dc.description | A thesis submitted to the School of Graduate Studies of Addis Ababa University In partial fulfillment of the requirements for the Degree of Masters of Science in Accounting and Finance | en_US |
| dc.description.abstract | The purpose of the study was to investigate determinants of internal auditing effectiveness in selected private construction companies. It was delimited to Yotek, Sunshine, Yencomad and Sur Construction Companies. descriptive research design was employed to conduct the study. Both random and non-random sampling techniques were used to select sample respondents out of the target population. With these techniques, the companies’ executives, department heads, internal auditors and administration personnel of the companies were selected. The total sample size of the study was 72. Primary and secondary source of data were used in the study. Data for the study was collected by making use of questionnaire, interview and document analysis. Both qualitative and quantitative methods of data analysis were employed to analyze the data. As the result, the study concludes that the major qualities of the companies auditing to be independence of auditors and they conducted the audits objectively as well as the audits were conducted in line with the working laws and in ways that conform to the established policies, regulations and procedures. It also concludes that the audits were effective in the fact that it enabled the companies meet their objectives and goals, as well as enabled them monitor their major business activities, transactions and inventories, and maintained safe and efficient cash handling. The key role players to the effectiveness of the audits performed in the companies were 6 the audit staffs and top managements. The presence of quality internal audits and the auditors’ competence in performing the audits were factors that contributed to the auditing effectiveness. The presence of moderately effective internal auditing had brought about positive impacts to the companies. The major impacts include that it helped the companies improve their operations, the effectiveness of risk management and examine the extent to which financial and material resources were effectively utilized. Moreover, the study concludes that absence of regular follow ups by audit staff and failure to give immediate responses towards audit findings by top management and the fact that audit reviews not conducted on due time were the major problems observed in the companies. As the result, it recommends that in order to enhance the effectiveness of internal audit functions, companies need to work to have quality internal audits which cover all aspects organizational issues. Besides, business firms need to establish appropriate organizational culture which is helpful to accomplish its objectives by bringing a systemic, disciplined approach to improve the effectiveness of risk management, control and governance process. For the maintenance of a sound and effective auditing, top management need to cooperate and provide supports to the firm’s internal auditors in different aspects they may find to be helpful to conduct their auditing activities. Moreover, they need to support the auditors by providing trainings so that they would update and improve their skills, as well as introduce themselves with new technologies of the time. | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/22739 | |
| dc.language.iso | en | en_US |
| dc.publisher | A.A.U | en_US |
| dc.subject | Internal audit | en_US |
| dc.subject | Internal Audit effectiveness | en_US |
| dc.title | Assessment of Effective Internal Audit Practice: The Case of Local Construction Companies in Addis Ababa | en_US |
| dc.type | Thesis | en_US |