Evaluating The Internal Audit Practices Of The Commercial Bank Of Ethiopia (CBE) Using The International Professional Practices Framework (IPPF) As A Benchmark
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Date
2023-06-11
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AAU
Abstract
Conformity with the International Internal Audit Standards (IIASs) is an essential part of
internal audit to ensure that the Internal Audit Functions (IAF) effectiveness, the reliability of
the audit reports and to enhance and protect organizational value by providing risk-based
and objective assurance. Hence, this study aims at evaluating the internal audit practices of
the Commercial Bank of Ethiopia (CBE) using the International Professional Practices
Framework (IPPF) as a benchmark. The study utilized a mixed research approach both
qualitative and quantitative research. Data were collected from primary and secondary
sources which includes; a self-administrated questionnaire, semi-structured in-depth
interviews, and documentary review. The survey design, in turn, uses purposive sampling and
the target populations of the study were internal auditors of CBE at the head office. The
collected data were analyzed by descriptive statistics with the support of SPSS and presented
by using tables. Based on the research results, the current practices of internal audit in CBE
through taking the Mandatory Guidance requirements of IPPF as a benchmark could be
summarized into four groups: standards that are adequately, fairly, inadequately, and poorly
complied. The major findings revealed that in CBE; a detailed audit work program is
prepared, an audit plan is properly implemented, internal audit reports are prepared
adequately as per the standards, Internal Audit Activities (IAAs) have an approved internal
audit charter, and also the findings disclosed independence & objectivity of internal audit
activities were aligned with the IPPF. More the code of ethics adequately complied and
govern both the behavior of individuals and the bank. However, gaps were stated regarding
the internal audit staff proficiency and due professional care and quality assurance and
improvement program (QAIP) standards inadequately and poorly complied respectively.
However, the mandatory guidance requirements conformance level in CBE fairly complied
with the IIASs. Finally, CBE should pay much attention to raising the application of IIASs
where attribute standards principally need much attention relative to performance standards.
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Keywords
Commercial Bank Of Ethiopia (CBE), International Professional Practices Framework (IPPF), Attribute Standards, Performance Standards, Code Of Ethics.