DETERMINANTS OF INTERNAL AUDIT EFFECTIVENESS IN BANK OF ABYSSINIA WITH SPECIFIC REFERENCE TO ADDIS ABABA DISTRICTS OF THE BANK

Abstract

Investigating the factors that affect internal audit effectiveness at Bank of Abyssinia was the goal of this study. In particular, to examine the impact of current Internal Audit Function and Internal Audit Effectiveness practices as well as staff competency, management support, internal auditor independence, and the availability of an approved internal audit charter on the efficacy of internal auditing at the Bank of Abyssinia. Three sample districts and the bank's head office were chosen for the study's purposes. The researcher's source for the necessary data was the internal audit personnel of the relevant bank. Both descriptive and explanatory research methodologies were used in the study. Taro Yamane's Formula was used to establish the sample size of 193 from the total population of 374, from 193 distributed questionaries 175 (90.67%) were collected and analyzed also the questionnaires were distributed to the Stratified Random Sampling-selected samples. The acquired data was examined using SPSS version 26, and the conclusions were presented both statistically and visually using Tables. As a result, all of the parameters affect how effective internal audits are at the Bank of Abyssinia, according to the output of the regression analysis management support, internal audit independence and approved internal audit charter has positively and statistically significantly and contribution to internal audit effectiveness which also these variables are major determinants to Internal audit Effectiveness in Bank of Abyssinia. Thus, bank should enhance competence of internal audit staffs in order to maximize their internal audit effectiveness. It is recommended that if similar research will be done in the future and add other determinates that affect the Internal Audit Effectiveness.