AN ASSESSMENT OF INTERNAL AUDIT PRACTICE IN CASE OF UNITED BANK S.C

Abstract

Internal audit has an important role in helping a firm to achieve its objective when it is implemented, operated, and managed effectively. The overall objective of the study is to assess the internal audit practice in the United Bank S.C. The study used both quantitative and qualitative data analysis methods were used. Data collected through the questionnaires were analyzed with descriptive statistics and qualitative method of analysis is employed for feedbacks obtained using open-ended questionnaire and data reviewed from documents were reviewed by referring most recent information from authorized documents and different reports. Annual reports, internal audit charters and other documents related to internal auditing practices. Purposive sampling method used from the selected model city branches’ and head office those are supervisor and branch internal auditors and the sample for this study focused on fifty (50) respondents comprising, forty (40) branch internal auditors and ten (10) supervisors. Then 50 questionnaires were distributed to the respondents. Out of these 44 returned and analyzed using SPSS statistical software. According to the results of questionnaires response, the purpose and authority of internal audit is clearly defined, internal audit manual and internal audit charter of IA in the bank positive impact in the activity of internal audit but purpose and authority of internal audit is not in line with “Standard for the Professional Practice” formulated by IIAs. The banks for hiring and training, level of experience as internal auditors, and professional certification of internal auditors were in good performance; and consequently, contribution to the effectiveness of internal audit practice. Internal auditor of the bank properly used the new technology and review internal audit activities by supported CSA questionnaire but the bank Control Self- Assessment team not properly attend on joint review meeting. In terms of independences and objectivity study was found internal audit is not free from intervention in performing it duties and internal auditors are not feel free to include any finding in to their audit report. The bank internal auditors’ follow-up implementation of corrective actions concerning audit findings was good but management of bank didn’t afford adequate attention to IAs recommendations. Management of the banks need to take corrective action to audit recommendations and have to afford adequate attention to the proficiency of internal auditors to better equip an internal audit practice quality. This finding indicated that extensive research should be taken in the quality of internal audit practice.