The Effect of Internal Audit on Organizational Value Adding: The Case of Nib International Bank
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Date
2021-09
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Addis Ababa University
Abstract
The main objective of this study was to assess the effect of internal audit on organizational value adding in the context of Nib International Bank. The study employed a descriptive research design to address the research objectives. A mixed research approach was also employed that enabled the researcher to substantiate and validate the finding from different data sources. The target population in this study incorporated 3 of the Bank’s Board audit sub-committee members, 6 of the top management members and 34 staff of the Bank’s Internal Audit Department. The study used census to incorporate all of the Internal Audit Department staff. In the meantime, the researcher employed purposive sampling technique to identify the Bank’s Board and top management members. Both primary and secondary data were used for the study. Primary data were collected through questionnaire and key informants’ interview while secondary data was gathered from various journals, articles and books related to the study topic. Given the nature of the data, both quantitative and qualitative data analysis were used. For the quantitative data, frequencies, means and standard deviations were applied while in-depth discussions and expositions were used for the qualitative data. The findings of the study suggested that internal audit function adds value to the Bank by enabling it to achieve its organizational goals. More so, it was found out that internal audit quality, organizational setting and adoption of the risk-based audit approach positively affect the value addition role of the Bank’s Internal Audit Department. In this manner, it was recommended that Management of the Bank should place undue attention to the Internal Audit Department taking note of its importance in adding value to the Bank to achieve its organizational goals
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Keywords
Internal audit, Management, internal audit quality