Assessing The Practice of Internal Auditing In the Case of Ethiopian Electric Utility (EEU)
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Date
2024-02-02
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AAU
Abstract
The objective of this study was to assess the internal audit practices in Ethiopian Electric Utility
(EEU) head office and the four district offices in Addis Ababa. This study employed a descriptive
design with mixed research approach. The primary data was collected from 41 respondents
Ethiopian Electric Utility (EEU) head office and the four district offices in Addis Ababa. Then,
descriptive statistics analysis was done through SPSS version 26. The results of the study showed
that the practice regarding the performance of the internal audit work, internal audit charter
and auditors’ level of proficiency and due professional care was high. The practice of internal
audit independence and objectivity and scope of the internal audit work was moderate. However,
the practice of EEU regarding management support for internal audit was poor. The results of
the study also showed that the use of ERP system contributes for the good practice of internal
auditing. Based on the findings of the study, it was recommended that the organization must
prioritize and foster a culture that values objectivity and independence in internal audit through
the establishment of clear policies, appropriate training, unrestricted rights of access to all
information and records to support the internal audit function. The organization has to facilitate
the internal audit works by allocating sufficient budget, recruiting more adequate and competent
internal auditors and invest in the right technology that are easy to use, secure and compatible
with existing systems to strengthen the internal audit practice.