ASSEESMENT OF INTERNAL CONTROL EFFECTIVNESS: CASE OF ETHIOPIAN INSURANCE CORPORATION.

Abstract

This study assessed the Ethiopian Insurance Corporation's internal control effectiveness. Through questionnaires, interviews and documentary review, both primary and secondary data sources were used. The research used descriptive types of research with a qualitative and quantitative approach to research. A total of 52 questionnaires, of which 77% were collected, were distributed to executives, senior staff assistants and staff assistants. An in-depth interview with key informants was held. The questionnaire data was analyzed using descriptive statistics such as frequency and mean percentages. In the EIC, the product of that internal control is not successful. This finding suggests that the internal control component of risk assessment is not practiced in the EIC. While monitoring is better in the EIC, there is in the company adequate control environment, control activities and insufficient flow of information and communication. The EIC needs to strengthen in its internal control system. A clear line of accountability should be established, an asset register and sufficient documentation should be maintained, a good flow of information and communication lines should be maintained, and the efficacy of the control system should be evaluated against clearly defined criteria to require remedial controls rehashed deficiency of the system.