Comparative study on the factors influencing on effectiveness of internal auditing practice between private and state banks in Eastern province

Abstract

This study investigates the factors influencing on the effectiveness of internal auditing practice among private and state banks in Eastern province. The factors influencing on the effectiveness of internal auditing practice are considered as independent variables, which are measured by using the dimensions of management support, auditor‘s competency and independency of internal audit unit. Effectiveness of internal auditing practice is considered as dependent variable in this study. The data is collected from 120 internal auditing staff randomly using questionnaires sampling techniques from the banks in the Eastern province. The data is analyzed using statistical techniques of descriptive statistics, correlation, regression and cross tabulation analysis. The findings of this study reveal that the level of effectiveness of internal audit practices and influencing factors are at high level among state and private banks. Further, this study shows the significant positive weak correlation between influencing factors and effectiveness of internal auditing practice. Therefore, the management has to focus on increase the quality of influencing factors for enhance the effectives of internal auditing practice in banking sectors in Eastern province.