INTERNAL AUDIT PRACTICES: CASE STUDY OF ETHIOPIAN INSURANCE COMPANIES

Abstract

This paper sought to assess of internal audit practice in Ethiopian private Insurance Companies. The population consists of staffs that found at internal audit department. The research employed descriptive design. A purposive sampling technique was used and 47structured questionnaires were distributed to the respondents a target population of all internal auditors of private insurance companies. The data was analyzed using descriptive statistical, specifically mean and standard deviation. The internal auditing practice of the private insurance companies was studied in terms International Standards for the Professional Practice of Internal Auditing; attributed standard, performance standard and code of ethics. The standards were complying well by the private insurance companies. The study point out that in order to comply with the mandatory guidance elements that promulgated by IPPF, all the private insurance companies should enhance their internal audit staffs trough continuous trainings and certifications. Besides, to gain more benefit from their audit unit, they should give due consideration to satisfy the adequacy of their audit staffing and allocation of the related resources. In addition, the mandatory guidance elements of IPPF should be followed to add value and improve performance.