Role of Internal Audit: A Case of Commercial Bank of Ethiopia

Abstract

The objective of the study was to assess what roles does internal audit plays in the achievement of organizational objectives. To achieve the objective of the study, both qualitative and quantitative analysis methods were employed to investigate primary data, which were collected through interview and questionnaire. Secondary data was also used to some extent. The study result shows that internal audit plays indispensable role on achievement of organization’s objectives through ensuring effective and efficient utilization of resource, advocating ethical conducts throughout the organization, assessing and identifying system inefficiencies and providing recommendation for better achievement. Moreover, findings shows that compliances/traditional audit is the dominant one type of audit practiced. The study also identifies absence of sufficient training, no/little encouragement by management and lower acceptability of findings as major barriers to efficient audit function. Based on the findings the audit department is recommended to extend its scope in assessing risks proactively, create continuous and direct contact with management, to have harmonious relationship and develop their value-adding role.

Keywords: audit, internal audit, role

DOI: 10.7176/EJBM/12-22-05

Publication date:August 31^st 2020