Assessment Of Internal Audit Practice: The Case Of Bank Of Abyssinia West District, Ethiopia

Abstract

The main objective of this study was to assess the internal audit practice of Bank of Abyssinia in west district. A descriptive and explanatory research design were employed in this study, and simple random sampling techniques were used to select the population sample. Data was collected through a well-structured questionnaire. The collected data was loaded in Statistical Package for Social Science (SPSS) version 20 and analyzed using descriptive analysis. The study found that the internal audit department is well-resourced with sufficient staff, budget, and technology for efficient performance. The team has adequate skills and competence to conduct comprehensive, credible audits, maintaining integrity and credibility. Adequate training and development opportunities are necessary for staff to stay updated on risks, new standards, and regulatory changes, strengthening the internal audit function. These factors collectively contribute to the success and reliability of the internal audit practices, helping the bank maintain sound governance and control mechanisms. The study shows that effective internal control systems prevent and detect fraud, protecting assets and maintaining financial reporting integrity. Employees should be informed about changes and responsibilities. Transparency and accuracy in financial reporting contribute to a culture of accountability and integrity. The study found that internal auditors consistently follow established audit procedures, enhancing organizational effectiveness and accountability. The study also found that internal auditors are effective in identifying risks and control weaknesses, demonstrating their commitment to safeguarding the organization's assets and ensuring efficient operations. The finding indicate the internal audit plan is comprehensive, aligning with the bank's strategic goals and addressing potential risks. The flexibility of the internal audit plan allows for adjustments in response to changing circumstances, ensuring the effectiveness of the audit practice in a complex banking environment. The research finally recommends that the Bank of Abyssinia West district should enhance its internal audit practices by implementing training programs, clear communication, regular reviews, and fostering a workplace culture that values accountability and integrity