Assessment on Determinants of Internal Audit Effectiveness in Business Leadership the Case of Commercial Bank of Ethiopia

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Addis Ababa University


Internal audit is used to strengthen the corporate governance of the organization and it is also a branch of financial management. Both corporate governance and financial management are the main aspects of business leadership. An effective internal audit needs effective leadership. The objective of this study was to assess the determinant factors of internal audit effectiveness in business leadership in the case of the commercial bank of Ethiopia.The study is based on questionnaires and sample respondents from the Commercial Bank of Ethiopia's internal audit section. The data was collected by distributing 108 five-point Likert scale self-administrated questionnaires to the respondents. The data is analyzed using SPSS version 20 and the results are presented by using descriptive statistics, frequencies, correlation, and linear regression analysis. The study included four independent variables. The regression result of the model shows that management support, organizational independence, and management perception affect internal audit effectiveness positively. whereas the competence of the internal audit affects negatively, but significantly, the internal audit effectiveness. Based on the findings, the study concludes and recommends that the internal audit sector of CBE emphasizes internal audit function effectiveness by studying the mentioned variables and giving more attention to the development of internal auditors through continuous training and by arranging professional qualification opportunities for its staff to enhance the level of internal audit effectiveness and, as a result, strengthen the corporate governance structure of CBE



Internal Audit Effectiveness, Internal Audit, Corporate Governance