An Examination of the Challenges Influencing Internal Audit Effectiveness in Selected Ethiopian Commercial Banks in Mekelle District Offices
DOI:
https://doi.org/10.55829/xb06hk32Keywords:
Challenges, Internal Audit, Commercial banks, and Effectiveness of Internal AuditAbstract
Internal audit has an important role in aiding a firm to achieve its objective when it is implemented, operated, and managed effectively. Business organizations which effectively implemented, operated and managed internal auditing were better able to identify their business risks and system inefficiencies for the sake of taking corrective actions and improvement in the process. The study used purposive sampling method and covered the three district offices of commercial banks found at Mekelle city and some branches under supervision of same. The study adopted mixed research method by employing quantitative and qualitative research methods. The quantitative research method used through 60 usable self-administered questionnaires and 6 interviews for management bodies. These questionnaires were constructed and distributed to internal auditors and control officers of the district and branch offices, and analyzed using STATA statistical software. The qualitative research method used through personal interview with Heads/supervisors of internal audit and administrative bodies. Competence of the respondents generally perceive internal auditors as having adequate professional knowledge and educational backgrounds; quality of the internal audit function's independence is in good way; management support is perceived as moderate; and Senior management usually backs internal audit functions, but there are clear gaps in staffing, training, and resources. Banks should prioritize recruiting internal auditors with backgrounds in accounting and finance or ensure that auditors from other disciplines receive intensive auditing and accounting training. This will improve technical competence and audit quality.
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