An analysis of the internal auditing on the performamnce of banking institutions in Zimbabwe
Loading...
Date
2020-08
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
The purpose of the research study was to establish the effects of internal auditing on the
performance of banking institutions in Zimbabwe. The motivation for the study was driven by the
continuous modernisation and changes in the banking sector that have reportedly, impacted on
the operations and processes of the Zimbabwe’s financial sector. Risk in banking institutions
have also increased due to the continuous changes in the financial operating environment and
internal controls in place have since significantly changed so as to adapt to changes in the
operating environment. More precisely, the security of depositors’ funds remains questionable as
cases of banking funds’ theft continued to occur regardless of the existence of the internal audit
function in banking institutions. The study used pragmatism as a research philosophy and
stratified sampling technique was used to select a sample of 16 banks from a total population of
19, whose employees were used during the actual data gathering process. More importantly, the
Pearson’s correlation and multiple regression analysis performed showed that auditor
independence, management support, internal controls and audit practices are critical and
explicit factors that directly affect the performance of Zimbabwe’s banking institutions. The
study recommended that the Zimbabwe’s banking sector, from time to time, should periodically
review and assess the compatibility of internal controls to match new demands in the financial
sector. In addition, management of the banking institutions operating in Zimbabwe should also commit itself in adequately availing financial resources to ensure that the internal audit function
performs its tasks without too many obstacles. Further, the study recommended that top
management of the sector, especially the CEOs, should not interfere or victimise internal audit
officers in the course of performing their mandatory tasks and audit charters should be regularly
reviewed and updated so that recent changes in the financial sector are incorporated to improve
performance.
Description
Keywords
Citation
Chinjova, F. & Chigariro, V. (2020) An analysis of the internal auditing on the performamnce of banking institutions in Zimbabwe. Global Scientific Journals, v. 8(8)