Factors Affecting Internal Audit Effectiveness: Evidence from Microfinance Institutions Operating in Hawassa, Sidama Region, Ethiopia
Issue:
Volume 8, Issue 2, June 2022
Pages:
19-29
Received:
30 March 2022
Accepted:
23 April 2022
Published:
29 April 2022
DOI:
10.11648/j.ajtab.20220802.11
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Views:
Abstract: The main purpose of this study was to examine factors affecting internal audit effectiveness: Evidence from Microfinance institutions operating in Hawassa city, Sidama Ethiopia. Effective internal audit function could be a major asset for improving public confidence in financial reporting and corporate governance. Also it add value and improve an organization’s operations. Ensuring the effectiveness of internal audit on MFIs is also important to improve internal control system and better performance. Thus, to examine effectiveness of IA in MFIs operating in Hawassa city, the study used mixed research design with quantitative approach. Management support, independence of internal audit, having approved internal audit charter, adequate and competent internal audit staff, and quality of internal audit are used as explanatory variables while, internal audit effectiveness considered as explained variable. Population was all MFIs currently operating in Hawassa city. The targeted populations were 54 respondents and all of them selected as Sample size based on judgmental sampling method because the researcher believes that, these respondents can provide in depth information about the study variables and respective indicating. The primary data used to collect information from targeted respondents and close ended questionnaires were distributed to selected respondents. Both descriptive and inferential statistics were used to analyze the data. Correlation and regression analysis were used to identify the relationship between dependent and independent variables. The SPSS data analysis tool has used and the findings were described and statistically presented using table, mean, frequency, standard deviation, percentage and graph. The result of Pearson correlation shows that all those factors included in this research has positively related with internal audit effectiveness. Besides the management support, adequate and competent internal audit staff and quality of internal audit has positively and significantly correlated with internal audit effectiveness. The result of regression identified that, Management support, Independence of internal audit, having approved internal audit charter, adequate and competent internal audit staff, and quality of internal audit were contributed to internal audit effectiveness in MFIs is positively and significantly and it making 23.9%. Thus, MFIs should understand which factors highly affect the effectiveness of their internal audit in order to enhance their audit function effectiveness. It is recommended that if similar research can be done in the future so as to find other factors which have impact on internal audit effectiveness and also to include other banks and insurances which were not included in this study.
Abstract: The main purpose of this study was to examine factors affecting internal audit effectiveness: Evidence from Microfinance institutions operating in Hawassa city, Sidama Ethiopia. Effective internal audit function could be a major asset for improving public confidence in financial reporting and corporate governance. Also it add value and improve an o...
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Assessing the Economic Importance of Innovation in Nigeria: An Empirical Approach
John Oluwasegun Ajibike,
Fisayo Fagbemi
Issue:
Volume 8, Issue 2, June 2022
Pages:
30-37
Received:
16 May 2022
Accepted:
9 June 2022
Published:
28 July 2022
DOI:
10.11648/j.ajtab.20220802.12
Downloads:
Views:
Abstract: The study examines the relationship between innovation and economic growth in Nigeria’s context. In the study, patent applications, residents are used as the innovation indicator, while GDP growth (annual %) represents the economic growth measure. The analysis covers the period 2000-2020, with the use of Autoregressive Distributed Lag (ARDL) technique and Granger causality test based on VECM. Results indeed reflect the increased importance given to the knowledge-intensive side of the economy. The effect of innovation tends to be a major source of increased productivity and improved growth. This assertion aligns with the argument and reaffirms the idea that innovation is instrumental in enhancing economic performance. Furthermore, simultaneous improvements in innovation and economic growth are expected if positive changes happened to both indicators with similar magnitudes. The evidence shows that growth-innovation linkage is mutually inducing, reflecting a bi-directional feedback effect. Hence, directing public policies towards supporting innovation aimed at significantly influencing economic growth should be better advocated. Given that the enhancement of innovation efforts seems advantageous to the economy, it is necessary to redesign education and job training that could engender the presence of high-quality innovation, and to ensure the rational reallocation of resources around relevant innovative technologies.
Abstract: The study examines the relationship between innovation and economic growth in Nigeria’s context. In the study, patent applications, residents are used as the innovation indicator, while GDP growth (annual %) represents the economic growth measure. The analysis covers the period 2000-2020, with the use of Autoregressive Distributed Lag (ARDL) techni...
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