Effectiveness of Internal Audit Practices: The Case of Ethiopian Insurance Corporation
No Thumbnail Available
Date
2025-06-27
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
AAU
Abstract
This study aims to evaluate the internal audit practices of the Ethiopian Insurance Corporation
(EIC) by using the International Professional Practices Framework (IPPF) as a standard. The
research adopts a mixed-methods approach, combining surveys, in-depth interviews, and
document analysis. For the survey, purposive sampling was applied to select five key districts
from the organization’s entire population. A total of 37 self-administered questionnaires were
distributed to internal auditors and senior managers across these districts: Central, Northern,
Western, Southern, and Eastern Addis Ababa. Of these, 32 questionnaires were completed and
returned, resulting in an 86.49% response rate. The main findings indicate that EIC prepares
comprehensive audit work programs, effectively implements audit plans, and produces internal
audit reports that comply with established standards. Additionally, the study found that quality
assurance and improvement initiatives, as well as the independence and objectivity of the
internal audit activities, align with IPPF guidelines. However, some shortcomings were
identified, including insufficient professional care, a lack of certification at the required
professional levels, staffing shortages, and inadequate training and development programs.
Based on these results, the researcher recommends that senior management give more focused
attention to the internal audit department, support ongoing professional development, and
establish formal training policies to foster better performance within the EIC