Temesgen Worku(PhD)Berhanu Retta2025-08-062025-08-062025-06-07https://etd.aau.edu.et/handle/123456789/6125This study examines the role of internal audit function in promoting effective corporate governance in the case of the National Bank of Ethiopia. Aware that sound governance mechanisms help ensure stability and accountability in financial institutions, the study examines how the prominent characteristics of the internal audit function, including independence, competence, auditing methodology, professional ethics, and support from management, impact governance effectiveness. Using a framework approach, the study applied a mixed-method approach, combining quantitative data gathered through structured questionnaires with qualitative information gathered through key informant interviews. The target population consisted of auditors, senior managers, and executive managers in the Bank. 72 usable questionnaires were received for analysis. Data were processed using SPSS 25, applying descriptive and inferential statistical methods, including linear regression analysis, to determine the relationship between internal audit characteristics and the outcomes of corporate governance. The findings indicate that support from management, auditor competence, and conformity with professional ethics significantly contribute towards the effectiveness of the internal audit function in augmenting sound governance practices. In addition, audit independence and the use of internationally accepted auditing methods emerge as the determinants for sound oversight and accountability. The study contributes to the academic literature through the provision of empirical insights drawn from the central banking scenario and the provision of pragmatic tips for the reinforcement of the internal auditing function in regulatory agencies. It highlights the need for the internal audit practices in the country to conform to international standards for it to be firm in ensuring sound governance and institutional integrity.enThesis