The Effect of Enterprise Resource Planning System Implementation on Internal Audit Effectiveness: The Case of Commercial Bank of Ethiopia

No Thumbnail Available

Date

2019-02

Journal Title

Journal ISSN

Volume Title

Publisher

Addis Ababa University

Abstract

Enterprise Resource Planning (ERP) systems appear to have significant effect on the auditing function, internal control procedures and auditors’ role. The traditional Internal Auditing Function which looks only for errors is insufficient and challenged after ERP systems implementation. The main purpose of this study is to investigate the effect of ERP on internal auditing effectiveness in Commercial Bank of Ethiopia (CBE). In addition, the finding of this study is to show the direct effects of management support, organizational independence of internal auditors, adequate and competent internal auditor’s staff and the internal auditors’ role and responsibilities in assessing and managing risks and with the internal audit effectiveness in ERP environment. Explanatory research design was used for the study, with a quantitative study approach to analyze internal audit effectiveness in an institution that implements ERP. The target population was 112 Human resource Personnel out of which census was used to select as population size is 112. Data was collected by using questionnaire at office levels of the organization. The data collected was analyzed using statistical Package for Social Sciences SPSS 25. According to the regression output the management support, the existence of adequate and competent Internal Audit staff and the cost associated with risk assessment and management significantly and positively contributed for the internal audit effectiveness in CBE. The remaining two variable; risk assessment and manage for the Internal Audit value and the organizational independent of internal auditors were statistically not significance. All of these five independent variables are making 43 % of the contributions for internal audit effectiveness in CBE. The bank and other concerned institutions should understand that the contributions of these variables were collectively significant to identify any Internal Audit activities in their office and to add values for the Effective internal Audit in banking sector specifically in CBE.

Description

A thesis submitted to the Department of Accounting and Finance of Addis Ababa University in partial fulfillment of the requirements for the Degree of Masters in accounting and finance.

Keywords

Commercial Bank of Ethiopia, Effective Internal Audit, Enterprise Resource Planning

Citation