ASSESSMENT OF INTERNAL AUDIT EFFECTIVENESS IN ETHIOPIAN SHIPPING AND LOGISTICS SERVICE ENTERPRISE

Abstract

The study aims to analyze assessment of internal audit effectiveness in Ethiopian shipping and logistics service enterprise. Specifically it investigate and assess the effectiveness of internal audit, independence of internal auditor, quality of work audit and management support have been investigated and used as a variables to assess internal audit effectiveness. The study were included both primary and secondary data. The target populations were internal auditors and employees in Ethiopian shipping and logistics enterprise. Descriptive statistic and descriptive research design was used to provide details regarding the demographic question and assessment of internal audit effectiveness. The data analysis part were done using SPSS version 21 (Statistical Package for the Social Science).Percentages mean and standard deviation which enhanced a meaningful description. Descriptive statistical analysis result indicated that internal audit effectiveness in Ethiopian shipping and logistics service enterprise found good. The Internal Audit effectiveness of the organization will be augmented when there were the existence of quality of audit work, competency of internal auditors, more supports from the management, have independence of internal auditor and the commitment of the management should be improved as it is evaluated and needed to be above the average range. The study is significant for researchers as it helps to improve the understanding of factors influencing internal audit effectiveness. Additionally, managers can use the finding of the study to solve the practical problems facing the internal audit effectiveness specifically in Ethiopian shipping and logistics service enterprise. Finally future study could be undertaken to explore the perception of other parties such as external auditors on the internal audits effectiveness.