Internal Audit Function and Corporate Governance: In Commercial Banks
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Date
2011-06
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Publisher
A.A.U
Abstract
This research paper examined the role of IAF in corporate governance effectiveness in the
case of 13 purposely sampled commercial banks by adopting concurrent mixed research
approach. Quantitative method s were used through survey of internal auditors, and
interviews and documentary sources taken under the qualitative methods. From the total
of 105 questionnaires were distributed to internal auditors, 78 had collected an d 8
interviews were conducted with vice-presidents of 8 banks.
Tile main findings of the study were that the rates of implementation to audit
recommendation by management, attributes of IAF (or the policy for hiring and training,
. ,
Experience and professional certification of internal. Auditors), and use of IAF working
papers by external auditors in tile banks were low. Thus, an IAF of the banks don 't
Possess quality and its positive impact on corporate governance effectiveness is
Questionable, though IA practices were maintaining independence and it is value-added
Activity;. Management of tile banks need to take corrective action to audit
Recommendation s and have to afford adequate attention to the proficiency of internal
auditors to better equip an IAF quality and its role in corporate governance effectiveness.
This finding indicated that extensive re search should be taken in the
quality of IAF and
its role in corporate governance mechanisms and their interrelationships.
Description
Keywords
Illternal audit; internal audit junctioll; qualitl} illtemal audit junction; corporate govemance; commercial banks