Internal Audit Practices of State Owned Enterprise in Ethiopia
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Date
2021-03
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A.A.U
Abstract
The purpose of this study is to assess the internal audit practices of state-owned enterprises in Ethiopia using the International Professional Practices framework (IPPF) as a benchmark. The study employs a mixed research approach combining survey design, in-depth interviews, and documentary reviews. The survey design, in turn, uses purposive sampling and selects 5 SOE’s from a total of 22 in the population. A self-administered questionnaire (122 in total) was distributed to all internal auditors of the 5 SOEs namely, Ethio-telecom, Ethiopian Airlines, Commercial Bank of Ethiopia, Berhan ena Selam Printing Enterprise & Ethiopian Postal Service Enterprise. 105 Completed questionnaires were collected from respondents; this represents a response rate of 86.06 %. The major findings reveals that detailed audit work program is prepared, audit plan is properly implemented, internal audit report are prepared as per the standards, and also the finding discloses quality assurance and improvement program, independence & objectivity of internal audit activities of SOEs were aligned with the IPPF. However gaps were sated regarding due professional care and development there is lack of certification at the level in which the professions demands to be, staff shortages and there is lack of development training programs. In light of the findings, the researcher recommended proper attention needs to be given by top managers for internal audit department, continuous professional developments, and the SOEs need to develop training policy to encourage effective performance.
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Keywords
Internal Audit; Mandatory Guidance Elements, Internal Auditing