Internal Audit Effectiveness and Its Determinant Factors in Commercial Banks of Ethiopia: The Case of Bale Robe Town

Hussen Abdulkadir Roba; Habtamu Alebachew Legass; Semira Jemal

doi:doi:10.11648/j.ijafrm.20230802.13

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Internal Audit Effectiveness and Its Determinant Factors in Commercial Banks of Ethiopia: The Case of Bale Robe Town

Hussen Abdulkadir Roba, Habtamu Alebachew Legass, Semira Jemal

Published in International Journal of Accounting, Finance and Risk Management (Volume 8, Issue 2)

Received: 13 May 2023 Accepted: 12 June 2023 Published: 27 June 2023

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Abstract

The aim of this study was to investigate the determinants of internal auditing effectiveness in a commercial bank of Ethiopia using a combination of descriptive and explanatory research methods. Specifically, from the audit literature five determinates such as TMS, COMP, IND, ITT and RBIEA were identified to check their effect on internal audit effectiveness. As the main aim of this study was to investigate factors affecting internal audit effectiveness of commercial banks of Ethiopia, Explanatory study would be used to show the causal relationship between variables due to explanatory type of research is used to explain, understand and predict the relationship between variables through statistical tests such as regression A sample size of 139 was determined from the total population 160 using Yamane's (1967) formula and the questionnaires were distributed to the selected samples by random sampling method and judgmental or purposive Sampling method. The primary and secondary sources of data were used to collect the necessary data. The collected data was analyzed using both descriptive and inferential statistics through EViews software. The study found a significant positive relationship between information technology usage, competency of internal auditors, top management support and cooperation between internal & external auditors with internal audit effectiveness while independency of internal auditor was found to be statistically insignificant. Finally, the study recommended that, internal audit staffs should have sufficient knowledge of key IT audit tools and maintain good or smooth relationship with external auditors, top management should give enough support and training in developing internal audit staffs.

Published in	International Journal of Accounting, Finance and Risk Management (Volume 8, Issue 2)
DOI	10.11648/j.ijafrm.20230802.13
Page(s)	49-56
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2023. Published by Science Publishing Group

Keywords

Internal Audit Effectiveness, IT Tools, Management Support

References

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APA Style

Hussen Abdulkadir Roba, Habtamu Alebachew Legass, Semira Jemal. (2023). Internal Audit Effectiveness and Its Determinant Factors in Commercial Banks of Ethiopia: The Case of Bale Robe Town. International Journal of Accounting, Finance and Risk Management, 8(2), 49-56. https://doi.org/10.11648/j.ijafrm.20230802.13

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ACS Style

Hussen Abdulkadir Roba; Habtamu Alebachew Legass; Semira Jemal. Internal Audit Effectiveness and Its Determinant Factors in Commercial Banks of Ethiopia: The Case of Bale Robe Town. Int. J. Account. Finance Risk Manag. 2023, 8(2), 49-56. doi: 10.11648/j.ijafrm.20230802.13

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AMA Style

Hussen Abdulkadir Roba, Habtamu Alebachew Legass, Semira Jemal. Internal Audit Effectiveness and Its Determinant Factors in Commercial Banks of Ethiopia: The Case of Bale Robe Town. Int J Account Finance Risk Manag. 2023;8(2):49-56. doi: 10.11648/j.ijafrm.20230802.13

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@article{10.11648/j.ijafrm.20230802.13,
  author = {Hussen Abdulkadir Roba and Habtamu Alebachew Legass and Semira Jemal},
  title = {Internal Audit Effectiveness and Its Determinant Factors in Commercial Banks of Ethiopia: The Case of Bale Robe Town},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {8},
  number = {2},
  pages = {49-56},
  doi = {10.11648/j.ijafrm.20230802.13},
  url = {https://doi.org/10.11648/j.ijafrm.20230802.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20230802.13},
  abstract = {The aim of this study was to investigate the determinants of internal auditing effectiveness in a commercial bank of Ethiopia using a combination of descriptive and explanatory research methods. Specifically, from the audit literature five determinates such as TMS, COMP, IND, ITT and RBIEA were identified to check their effect on internal audit effectiveness. As the main aim of this study was to investigate factors affecting internal audit effectiveness of commercial banks of Ethiopia, Explanatory study would be used to show the causal relationship between variables due to explanatory type of research is used to explain, understand and predict the relationship between variables through statistical tests such as regression A sample size of 139 was determined from the total population 160 using Yamane's (1967) formula and the questionnaires were distributed to the selected samples by random sampling method and judgmental or purposive Sampling method. The primary and secondary sources of data were used to collect the necessary data. The collected data was analyzed using both descriptive and inferential statistics through EViews software. The study found a significant positive relationship between information technology usage, competency of internal auditors, top management support and cooperation between internal & external auditors with internal audit effectiveness while independency of internal auditor was found to be statistically insignificant. Finally, the study recommended that, internal audit staffs should have sufficient knowledge of key IT audit tools and maintain good or smooth relationship with external auditors, top management should give enough support and training in developing internal audit staffs.},
 year = {2023}
}

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TY  - JOUR
T1  - Internal Audit Effectiveness and Its Determinant Factors in Commercial Banks of Ethiopia: The Case of Bale Robe Town
AU  - Hussen Abdulkadir Roba
AU  - Habtamu Alebachew Legass
AU  - Semira Jemal
Y1  - 2023/06/27
PY  - 2023
N1  - https://doi.org/10.11648/j.ijafrm.20230802.13
DO  - 10.11648/j.ijafrm.20230802.13
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 49
EP  - 56
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20230802.13
AB  - The aim of this study was to investigate the determinants of internal auditing effectiveness in a commercial bank of Ethiopia using a combination of descriptive and explanatory research methods. Specifically, from the audit literature five determinates such as TMS, COMP, IND, ITT and RBIEA were identified to check their effect on internal audit effectiveness. As the main aim of this study was to investigate factors affecting internal audit effectiveness of commercial banks of Ethiopia, Explanatory study would be used to show the causal relationship between variables due to explanatory type of research is used to explain, understand and predict the relationship between variables through statistical tests such as regression A sample size of 139 was determined from the total population 160 using Yamane's (1967) formula and the questionnaires were distributed to the selected samples by random sampling method and judgmental or purposive Sampling method. The primary and secondary sources of data were used to collect the necessary data. The collected data was analyzed using both descriptive and inferential statistics through EViews software. The study found a significant positive relationship between information technology usage, competency of internal auditors, top management support and cooperation between internal & external auditors with internal audit effectiveness while independency of internal auditor was found to be statistically insignificant. Finally, the study recommended that, internal audit staffs should have sufficient knowledge of key IT audit tools and maintain good or smooth relationship with external auditors, top management should give enough support and training in developing internal audit staffs.
VL  - 8
IS  - 2
ER  -

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Author Information

Hussen Abdulkadir Roba

Department of Accounting and Finance, College of Business and Economics, Madda Walabu University, Bale Robe, Ethiopia
Habtamu Alebachew Legass

Department of Accounting and Finance, College of Business and Economics, Madda Walabu University, Bale Robe, Ethiopia
Semira Jemal

Department of Accounting and Finance, College of Business and Economics, Dire Dawa University, Dire Dawa, Ethiopia

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APA Style

Hussen Abdulkadir Roba, Habtamu Alebachew Legass, Semira Jemal. (2023). Internal Audit Effectiveness and Its Determinant Factors in Commercial Banks of Ethiopia: The Case of Bale Robe Town. International Journal of Accounting, Finance and Risk Management, 8(2), 49-56. https://doi.org/10.11648/j.ijafrm.20230802.13

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ACS Style

Hussen Abdulkadir Roba; Habtamu Alebachew Legass; Semira Jemal. Internal Audit Effectiveness and Its Determinant Factors in Commercial Banks of Ethiopia: The Case of Bale Robe Town. Int. J. Account. Finance Risk Manag. 2023, 8(2), 49-56. doi: 10.11648/j.ijafrm.20230802.13

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AMA Style

Hussen Abdulkadir Roba, Habtamu Alebachew Legass, Semira Jemal. Internal Audit Effectiveness and Its Determinant Factors in Commercial Banks of Ethiopia: The Case of Bale Robe Town. Int J Account Finance Risk Manag. 2023;8(2):49-56. doi: 10.11648/j.ijafrm.20230802.13

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@article{10.11648/j.ijafrm.20230802.13,
  author = {Hussen Abdulkadir Roba and Habtamu Alebachew Legass and Semira Jemal},
  title = {Internal Audit Effectiveness and Its Determinant Factors in Commercial Banks of Ethiopia: The Case of Bale Robe Town},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {8},
  number = {2},
  pages = {49-56},
  doi = {10.11648/j.ijafrm.20230802.13},
  url = {https://doi.org/10.11648/j.ijafrm.20230802.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20230802.13},
  abstract = {The aim of this study was to investigate the determinants of internal auditing effectiveness in a commercial bank of Ethiopia using a combination of descriptive and explanatory research methods. Specifically, from the audit literature five determinates such as TMS, COMP, IND, ITT and RBIEA were identified to check their effect on internal audit effectiveness. As the main aim of this study was to investigate factors affecting internal audit effectiveness of commercial banks of Ethiopia, Explanatory study would be used to show the causal relationship between variables due to explanatory type of research is used to explain, understand and predict the relationship between variables through statistical tests such as regression A sample size of 139 was determined from the total population 160 using Yamane's (1967) formula and the questionnaires were distributed to the selected samples by random sampling method and judgmental or purposive Sampling method. The primary and secondary sources of data were used to collect the necessary data. The collected data was analyzed using both descriptive and inferential statistics through EViews software. The study found a significant positive relationship between information technology usage, competency of internal auditors, top management support and cooperation between internal & external auditors with internal audit effectiveness while independency of internal auditor was found to be statistically insignificant. Finally, the study recommended that, internal audit staffs should have sufficient knowledge of key IT audit tools and maintain good or smooth relationship with external auditors, top management should give enough support and training in developing internal audit staffs.},
 year = {2023}
}

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TY  - JOUR
T1  - Internal Audit Effectiveness and Its Determinant Factors in Commercial Banks of Ethiopia: The Case of Bale Robe Town
AU  - Hussen Abdulkadir Roba
AU  - Habtamu Alebachew Legass
AU  - Semira Jemal
Y1  - 2023/06/27
PY  - 2023
N1  - https://doi.org/10.11648/j.ijafrm.20230802.13
DO  - 10.11648/j.ijafrm.20230802.13
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 49
EP  - 56
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20230802.13
AB  - The aim of this study was to investigate the determinants of internal auditing effectiveness in a commercial bank of Ethiopia using a combination of descriptive and explanatory research methods. Specifically, from the audit literature five determinates such as TMS, COMP, IND, ITT and RBIEA were identified to check their effect on internal audit effectiveness. As the main aim of this study was to investigate factors affecting internal audit effectiveness of commercial banks of Ethiopia, Explanatory study would be used to show the causal relationship between variables due to explanatory type of research is used to explain, understand and predict the relationship between variables through statistical tests such as regression A sample size of 139 was determined from the total population 160 using Yamane's (1967) formula and the questionnaires were distributed to the selected samples by random sampling method and judgmental or purposive Sampling method. The primary and secondary sources of data were used to collect the necessary data. The collected data was analyzed using both descriptive and inferential statistics through EViews software. The study found a significant positive relationship between information technology usage, competency of internal auditors, top management support and cooperation between internal & external auditors with internal audit effectiveness while independency of internal auditor was found to be statistically insignificant. Finally, the study recommended that, internal audit staffs should have sufficient knowledge of key IT audit tools and maintain good or smooth relationship with external auditors, top management should give enough support and training in developing internal audit staffs.
VL  - 8
IS  - 2
ER  -

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