Mihret, Dessalegn

2010

This study explores internal audit (IA) practices in selected Ethiopian organizations to identify factors associated with attributes of IA departments. Analytical questionnaire survey responses of 188 IA directors and staff from Ethiopian government ministries, state-owned enterprises and private companies were used. Canonical analysis results show that IA proficiency, scope of IA work and quality of IA planning and execution are higher in organizations where organizational policy authorizing IA is clearly defined, organizational risk exposure is high and internal audit's linkage with external audit is strong. The findings suggest that in organizations that are exposed to high risk, management tends to appreciate IA's assistance in managing risk and thus strengthens IA. Results also suggest the importance of internal and external audit linkages and IA charter (or similar organizational policy) to strengthen IA. The study provides further evidence of differences in IA attributes between public and private sector entities.

African Journal of Accounting, Economics, Finance and Banking Research, 6(6), p. 42-61

1933-3463

1933-3404

https://hdl.handle.net/1959.11/6698

Global Business Investments Business and Publications LLC

Factors Associated with Attributes of Internal Audit Departments: a Canonical Analysis

Journal Article

Publication