Determinant of Effectiveness of Internal Audit in Commercial Banks of Ethiopia: The Case Study of Wegagen Bank Share Company
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Date
2019-12
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A.A.U
Abstract
As internal audit plays a vital role in internal control, risk management and corporate governance of organizations, it is important to study factors that enhance effectiveness of internal audit. The main objective this study is to identify the determinants of effectiveness of internal audit in Commercial banks of Ethiopia. Therefore, it investigates the relationship between effectiveness and contributing factors. This research was conducted on Wegagen bank Share Company by collecting primary and secondary data. Questionnaires were constructed using likert scale and distributed to 190 internal auditors of Wegagen bank and analyzed using Stata statistical software. Moreover, interview with the bank’s internal audit director and documents review was made. Accordingly, the result of this study proved that competence of internal auditors, independence of internal audit activity, board and management support as well as methodology/process of internal audit have plays a vital role for effectiveness internal audit in Commercial banks of Ethiopia. The research recommended that Commercial banks of Ethiopia should give more attention to the factors mentioned above to enhance their internal audit department efficiency and effectiveness so as to play value adding role in risk management, strengthening internal control and corporate governance. The researcher also recommend further research to be carried out on other factors that could contribute a value for effectiveness of internal audit function of banking industry in Ethiopia
Description
A thesis: submitted to the department of accounting and finance, college of business and economics, Addis Ababa university, in partial fulfillment of the requirement of master of science in Accounting and Finance
Keywords
Commercial banks of Ethiopia, Determinants of internal audit effectiveness, Internal audit