COLLEGE OF MANAGEMENT, INFORMATION AND ECONOMIC SCIENCE
SCHOOL OF BUSINESS AND PUBLIC ADMINSTRATION
DEPARTMENT OF ACCOUNTING AND FINANCE
ROLE OF INTERNAL AUDIT ON ACHIEVEMENT OF ORGANIZATIONAL OBJECTIVES. A CASE OF COMMERCIAL BANK OF ETHIOPA.
SENIOR ESSAY SUBMITTED TO DEPARTMENT OF ACCOUNTING AND FINANCE IN PARTIAL FULFILMENT OF BACHELOR OF ARTS DEGREE IN ACCONTING AND FINANCE.
BY: GETANEH YENEALEM BER/1051/01 ADVISOR: MOGES ABRHAM (Ato)
JUNE, 2011 ADDIS ABABA
First and for most I would like to thank Almighty God and his mother Saint Virgin Marry without whom I would do nothing. Secondly, I would like to express my profound gratitude and appreciation to my advisor, Moges Abreham, who devoted his precious time and effort, for his unreserved comments, helpful guidance and friendly approach. Thirdly, my gratitude goes to my dorm mate and best friends for their constrictive suggestions and comment, and to Henok, Yibeltal, and yohannes who provided me their computers for editing purpose. I want also to thank chief audit executive, auditors and all other employees of CBE for their priceless support in providing relevant data required for the study. Moreover , my heartfelt thank goes to my mother ,W/ro Tsehaynesh Fekad who cultivated me till today, and families who provided me financial , psychological and moral support . Last, but not least, I am great full to thank Accounting and Finance Department,librarians, secretary, and others who provided me either direct or indirect support.
Acronyms and List of Tables
BODs= Board of Directors
BPR = Business Process Reengineering
CAE= Chief Audit Executive
CBE = Commercial Bank of Ethiopia
COSO = Committee of Sponsoring Organization
GAO= General Accounting Office
IAF = Internal Audit Function
IIA = Institute of Internal Auditors
Table 1: General Background of Respondents
Table2: Independence of internal auditors
Table3: Structure of Audit Department
Table4: Factors that affect the performance of internal auditors Table5: Functions of internal audit
Table6: Responsibility of Internal Audit Division
Table7: Role of Internal Audit
Table8: Types of Audit
Table9: Activities of internal audit Department
The objective of the study was analyzing how internal audit facilitates 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 in 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 through out the organizations, assessing and identifying system inefficiencies and providing recommendation for better achievement. Empirical evidences show that in most Ethiopian companies’ compliances/traditional audit is the dominant one and...