ASSESMENT OF INTERNAL AUDIT PRACTICES: THE CASE OF ETHIOPIAN TRADING BUSINESS CORPORATION

Abstract

The aim of this study was to access the internal audit practices in the case of Ethiopian Trading Business Corporation. The study adopted a case study and research questions prepared to assess the internal audit practice in the corporation considering the internal audit quality, management support, organizational setting and auditee attributes as a factors. The questionnaire data were analyzed using descriptive statistics and data from document review were interpreting qualitatively. The result shows that all the four factors have an impact in the internal audit practice of the corporation. The major findings related to the internal audit department of the corporation are inconsistence management support, lack of up-to-date training, lack of team spirit, insufficient corporation of auditee towards internal audit activities, less response on audit finding and budget constraints. Considering the above finding, the study recommended that, provide short and long term training, management support the department by allocating proper budget, respond audit finding on time, facilitate team sprite, also improve the audit department structure by establishing audit staff in each enterprises and link with network system for data transaction to facilitate their performance. Since the all the four factors has a great influence on the effectiveness of the internal audit practice of the corporation.