Gadise Teshome PP
Gadise Teshome PP
ARBAMINCH, ETHIOPIA
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TABLE OF CONTENTS
Page
Abstract………………………………………………………………………………………….
CHAPTER ONE
1. Introduction……………....................................................................................................4
1.1. Background of the study……………………………………………………………….4
1.2. Statement of the problem ………………………………………………………………4
1.3 Research question……………………………………………………………………5
1.4. Objective of the study ………………………………………………………………….5
1.4.1. General objective …………………………………………………………………5
1.4.2. Specific objectives ……………………………………………………………….. 5
1.5. Significance of the study………………………………………………………………..5
1.6. Scope of the study ………………………………………………………………………
CHAPTER THREE
3. Research Methodology………………………………………………………………..13
3.1. Research design…………………………………………………………………….13
3.2. Data Collection instrument and source of data ……………………………………..13
3.3. Sampling techniques……………………………………………………………….13
3.4. Data Analysis and presentation………………………. ……………………………13
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CHAPTER ONE
INTRODUCTIONS
1.1. Background of the study
The internal control process is a mechanism for reducing instance for fraud, misappropriation
and errors. It has recently become more extensive addressing all the various activities faced by
the organizations it is now recognized that internal control process in critical to organization
ability to meet is goals and objectives and to maintain its financial viability. Company‟s internal
control consists of the policies and procedures established to provided reasonable assurance that
specific objective of the company will be achieve. Internal Audit practice in the examination of
accounts a business concern by it employees specially appointed for the purpose.
When the properly designed and consistently enforced a good system of internal audit will help
management safeguard the organization resources, product reliable financial reports and comply
with laws as regulations. It will also reduce the possibility of significant errors and irregularities.
Proper internal auditing practice is the base for preserving the stability of any company. The
study focuses a describing and analyzing the important control directions that will be related to
internal auditing practice.
In regard to see the existing and applicability of attributer and the standards in Coop Bank of
Oromia Arbaminch branch performance to increase the quality of audit work raising awareness
of the role and significance of internal auditing to the achievement of specific objectives.
CBO (S.C.) was registered commercially on October 29, 2004 in accordance with article 304 of
Commercial Code of Ethiopia & in line with proclamation no. 84/1994 with authorized capital of
Birr 300 million
It started operation on 8th march 2005, with paid up share capital of birr 112 million
62.86 % of Ownership was occupied by Cooperatives while the remaining 37.14 % was
occupied by non-cooperatives.
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1.2. Statement of the problem
Internal auditing encompasses the examination and evaluation of the adequacy and effectiveness
of the organization system of internal control and qualities of performance in carrying out
assigned responsibilities internal auditing is a service function established within the
organization to examine and evaluate its activities. Internal auditing may focus on financial
audits. Compliance audit, fraud audit, internal auditors usually assist management in ensuring
that there is proper internal control system in place and the operation of the enterprise
(organization) is operated in effective and efficient manner. It is clear that in adequate internal
control can expose the organization to various problems. Primary, absence of internal auditing in
the organization will result in lack of continuous assurance services. Secondly, the degree of
independence of internal auditor since they are employee of the organization so it is the related
problem will exist. .
1.3 Research questions
• Does the bank have internal auditing practice?
• Does the principle of internal auditing apply in the organization?
• What factors affecting internal auditing practice of Coop Bank of OromiaAraminch
branch (area)
• What is the major drawback of auditing practice of Coop Bank of OromiaArbaminch
Branch?
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1.5. Significance of the study
The major benefits of the study are the following.
• It will enable the manager to aware of the importance and use of internal audit in
achieving intended objectives.
• It will be help the auditor in the bank know application of internal auditing principles.
• I will be used as an additional reference to the existing literatures and can be used as
spring boards for other researcher who wish to conduct a research in the same area.
1.6. Scope of the study
Because of time and cost limitation the researcher enforced to limit the study area in assessing
internal auditing practice of Coop Bank of OromiaAraminch branch. The study will mainly
focus to identify factors which affect the internal auditing practice, the challenges, and the
strategies uses to alleviate the problems in the bank.
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CHAPTER THREE
3.RESEARCH METHODOLOGY
This section deals to the variable over which the data for the study are collects and method that
use in data collections, analysis, and interpretation
3.1 Research Design
The researcher will use descriptive research method to describes the assessment of internal
auditing practice in cooperative bank of Oromia at Arbaminch branch The reasons for using this
method are to describe the assessment of internal auditing practice in cooperative bank of
Oromia at Arbaminch branch
3.1. source and methods of Data collection
• The data collection method used in the study will be both primary and secondary sources.
• To collect primary data, the researcher will use structure interview and questionnaires.
• To get secondary data the researcher will use different documents from different sources
like magazine, journals, reports etc.
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