Factors determining Internal audit quality in some selected banks in Bangladesh

Abstract

The goal of this study was to identify and analyze the factors that influence the quality of internal audits in a sample of Bangladeshi banks. The study used a combination of qualitative and quantitative research methods and included a sample of banks chosen based on the size and representation of different regions in the country. Data was collected through interviews with internal auditors, management, and regulators, as well as analysis of internal audit reports and other relevant documents. The findings of the study showed that several factors contribute to the quality of internal audits in Bangladesh’s banking sector, including the independence and objectivity of the internal audit function, the expertise and qualifications of internal auditors, the adequacy of resources and support, and the effectiveness of communication and reporting. The study also identified areas for improvement, including the need for greater standardization and consistency in internal audit practices and the importance of aligning internal audit activities with the organization’s risk profile. These findings have implications for internal auditors, management, regulators, and other stakeholders in the banking industry, and offer recommendations for improving the quality of internal audits in Bangladesh.