ASSESMENTOF INTERNAL AUDIT PRACTICES IN PRIVATE COMMERCIAL BANKS IN ETHIOPIA: THE CASE OF SELECTED PRIVATE BANKS

Abstract

The purpose of this research is to assess internal Audit Practices on selected private commercial banks of Ethiopian using all Mandatory Guidance Elements together with the code of ethics were taken as a benchmark for the study which is newly revised international Auditing Standards IAS as effective January 2017 and issued framework that guiding how internal audit activities should be conducted through using IPPF. This study employed a descriptive research designed. The study used purposive sampling method and covered only focused on five private banks at head office internal auditors. The primary means of data collection, self-administered questionnaires were constructed in Likert scale; questionnaire was employed and distributed to the respective internal auditors (officers, supervisors & Chief Audit Executives). Data collected from questionnaires was coded and analyzed with the aid of the Statistical Package for Social Sciences (SPSS) version 20 for descriptive statistics. According to the results of the study mandatory Guidance, code of ethics of current practices of internal audit in Private Commercial Banks of Ethiopia conformance level were well conformance, inadequate and poor IAS. In general, the mandatory guidance requirements conformance level within the selected Private Commercial Banks of Ethiopia it was poor/below the expectation/ conformance, the Quality Assurance and Improvements Program (QAIP) standard; should be carried out properly by all Private Commercial Banks of Ethiopia were the given ways to curve all unsatisfactory conformances of the mandatory guidance requirements by private commercial banks of Ethiopia. To address these findings, the study recommends; give attention on the Quality Assurance and Improvements Program (QAIP) should be develop QAIP both internal and external assessment and communicate the result of the quality to senior management and the board regularly.