| Abstract: | The purpose of the study would be seek to assess the internal auditing practice of
commercial bank of Ethiopia .Conformity with the International Internal Audit
Standards (IIASs) is an essential part of internal audit to ensure that the Internal Audit
Functions (IAF) effectiveness, the reliability of the audit reports and to enhance and
protect organizational value by providing risk-based and objective assurance. Hence,
this study aims at asses the internal audit practices of the Commercial Bank of
Ethiopia. The study utilized a mixed research approach both qualitative and
quantitative research approach. Data were collected from primary and secondary
sources which includes; a self-administrated questionnaire, semi-structured in-depth
interviews, and documentary review. The survey design, in turn, uses purposive
sampling and the target populations of the study were internal auditors of CBE at the
head office. The collected data were analyzed by descriptive statistics with the support
of SPSS and presented by using tables. Based on the research results, the current
practices of internal audit in CBE through taking the Mandatory Guidance
requirements of IPPF as a benchmark could be summarized into four groups:
standards that are adequately, fairly, inadequately, and poorly complied. The major
findings revealed that in CBE; a detailed audit work program is prepared, an audit
plan is properly implemented, internal audit reports are prepared adequately as per the
standards, Internal Audit Activities (IAAs) have an approved internal audit charter, and
also the findings disclosed independence & objectivity of internal audit activities were
aligned with the IPPF. More the code of ethics adequately complied and govern both
the behavior of individuals and the bank. However, gaps were stated regarding the
internal audit staff proficiency and due professional care and quality assurance and
improvement program (QAIP) standards inadequately and poorly complied
respectively. However, the mandatory guidance requirements conformance level in
CBE fairly complied with the IIASs. Finally, CBE should pay much attention to raising
the application of IIASs where attribute standards principally need much attention
relative to performance standards. |
