Internal auditing standards and its practice the case of East Arsi Zone Ethiopia

Abstract

The purpose of the study was to investigate how major internal audit standards are applied in the internal audit departments of selected public enterprises in East Arsi Zone, Ethiopia. Accordingly competency, compliance, Independency, Risk management and quality assurance has been taken as major parameters for comparison. 36 Questionnaires were distributed for the target population. Questionnaires were designed to measure the level of agreement of the respondents on the applicability of each parameter. The result shows competency in terms of educational level, background and experience is in line with the standards. Though majority of the respondents are agreed that they are working as per internal auditing standards, a number of auditors don’t agree on the compliance. Auditors also responded that their independency is impaired because most of the time they are attached with internal functional areas.