Factors influencing effectiveness of internal audit in the Commercial Banking Sector the case of Commercial Bank of Ethiopia
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Date
2019-05
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Addis Ababa University
Abstract
Generally, internal audit has become an essential management tool for achieving effective control in an organization. The main purpose of this study is to identify the factors that influence internal audit effectiveness in the Commercial Bank of Ethiopia (management support, management’s perception of internal audit values, organizational independence of internal auditors, placement of adequate and competent internal audit staff, and the presence of approved internal audit charter) and to show the influences of the same on the effectiveness of internal audit activities. To address this purpose, the study required to answer the research question: To what extent these factors influence effectiveness of internal audit and which of them is the most important for internal audit effectiveness. The study adopted quantitative research methods and internal auditors of the CBE are the source for the required data to the researcher through the questionnaires administered and analyzed using SPSS. Census method was used to conduct the research.
According to the research finding Organizational independence, the management support and management perceptions of internal Audit value highly affect the internal audit effectiveness. Whereas, availability of adequate and competent internal audit staff and the presence of approved internal audit charter were not significant impact on the effectiveness of internal audit. All of these five independent variables are making 85 % of the contributions for internal audit effectiveness. The Commercial Bank of Ethiopia should understand that the contributions of these variables were collectively significant to identify any noncompliance activities in their office and to add values for the IAE.
Description
A thesis submitted to addis ababa university, faculty of business & economics department of public administration and development management in partial fulfillment of the
Requirements for the award of a master’s degree in
Public management & policy
Keywords
Competence, Independence, Internal Audit, Management Support