Assessment Of Performance Audit Practice And Challenges: The Case Of Development Bank Of Ethiopia

Abstract

The purpose of this study is to assess the practices and challenges of performance audit: in the case of Development Bank of Ethiopia. Based on literatures there are three types of auditing. Among them, performance auditing is a recent, dynamic and key discipline and it is vital to the economy, efficiency and effectiveness of organizations performance. Despite its blessings, the possible challenges that encounter auditors should not be disregarded. To assess this study, the researcher used both primary and secondary data collection methods. To collect the primary data, the researcher distributed 30 questionnaires for the banks Audit Directorate members and interview 8 management members from other working units of the bank, the secondary data were collected from different literatures including banks audit manual. The data were analyzed by descriptive statistics. The findings of the study were two types, the finding about the practices of performance auditing were organization of the department, whether there were sufficient number of performance auditors, their qualification, the bank performs post audit practices and related issues were seen. The findings about the challenges, there were different types of challenges like, some auditors have difficulties of audit topic selection, difficulty in collecting necessary information, lacks experience sharing activities in similar financial institutions, lacks enough media exposure and they report common practices. In light with the findings the study recommends that the audit topic should be significant, auditable and consistent with the aim of maximizing the expected impact of the audit, efforts should be made on international, national, or local level of exchange of ideas, knowledge harmonizing standards, sharing best practices needed, and the media can play a significant role in enhancing the role and public stand of an audit organization