CHAPTER FOUR

4. Data analysis and Presentation

4.1. Introduction

This chapter consists of three major sections. The first section presents the reliability analysis
test for the entire data by using SPSS and its results. The second section is descriptive statistics
of respondent’s demographic characteristics. The third but not the least section reports the
investigation results obtained from Internal audit quality, organizational setting, Management
support, Approved audit charter, Resource availability for internal auditors of Ethiopian
Insurance Corporation.

4.2 Reliability Analysis

To measure the consistency of the questionnaire particularly the Likert-type scale, the reliability
analysis is essential in reflecting the overall reliability of constructs, which it is measuring. To
carry out the reliability analysis, Cronbach’s Alpha (α) is the most common measure of scale
reliability and a value greater than 0.700 is very acceptable (Field, 2009; Cohen and Sayag,
2010.) According to the under listed table, the reliability analysis result of all variables shown
0.893and here by the responses generated for all of the variables’ used in this research were
reliable enough for data analysis.

Table 4.1 Reliability Statistics

Cronbach's Alpha N of Items

0.893 35

Source: Reliability statistics analysis by SPSS 2020

4.3 Demographic Characteristics of Respondents

The following section presents respondents profile in terms of Gender, Field of study, Level of
education, Certification related to the profession, Current position in the organization, Service
year in Ethiopian Insurance corporation and total years of audit experience.
 A) Gender

As shown in the below table describe that 10 (66.70%) of the respondents were male while the
remaining 5 (33.30%) of the respondents were female. From this the researcher inferred that the
majority of internal auditors worked in Ethiopian Insurance Corporation were male.
Table 4.2 Gender

Frequency Percent Valid Cumulative

Percent Percent
Male 10 66.7 66.7 66.7
Valid Female 5 33.3 33.3 100.0
Total 15 100.0 100.0

Source: Survey result by SPSS 2020

B) Field of Study
Majority of internal audit staff 12(80%) were Accounting graduates, 2(13.30%) Management
and 1(6.70%) was Economics graduate.
Descriptive statistics of the data are presented in table 4.3. Most Internal Audit teams had a
background in “Accounting”. This shows that IA activity in Ethiopian Insurance Corporation has
limited on financial operation areas. The scope of IA had not expanded to non-financial
operation areas. IA team including most “Accounting” background staffs could lack skills,
experience, and knowledge in other fields. (Paape, 2007).
Table 4.3 Field of Study

Frequency Percent Valid Cumulative

Percent Percent
Accounting 12 80.0 80.0 80.0
Management 2 13.3 13.3 93.3
Valid
Economics 1 6.7 6.7 100.0
Total 15 100.0 100.0

(B) Level of Education

In the below table 4.4, educational background, the respondents indicated their highest
level of education. According to their response, 7(46.70%) of the respondents obtained a
 Bachler degree as their highest educational level. In addition, 8(53.80%) of the
respondents obtained a post graduate degree or masters as their highest level of
education.

Table 4.4 Level of Education

Frequency Percent Valid Percent Cumulative

Percent

BA Degree 7 46.7 46.7 46.7

Valid MBA 8 53.3 53.3 100.0

Total 15 100.0 100.0

Source: Survey result by SPSS 2020

C) Certification Related to the profession

Descriptive statistics of the data are presented in table 4.5. There were also 2(13.30%)
respondents those have a certification in addition of their highest academic qualification. These
certifications were Association of Chartered Certified Accountants (ACCA), 3(20 %)
respondents Certified Internal Auditor (CIA), 5(33.30%) respondents certification on
International Financial Reporting System (IFRS) and the remaining respondents 5 (33.30%) were
no related certifications. Based on this result, most of IA team members were well educated.
They held additional certifications in addition to Bachler degree in different field of study. This
result is consistent with prior IA standards (IIA, 2011) and studies (Al-Twaijry, et al., 2003;
Mihret & Woldeyohannis, 2008; Mihret, et al., 2010; Abu-Azza, 2012; George, et al., 2015)
In terms of professional certifications, IA team of EIC had not sufficient certified personnel.
Professional certifications have great quality in regard of adding value, and enhance department
and organizational performance (Bou-Raad & Capitanio, 1999). According to the participants’
response, EIC lack sufficient certified personnel with regard to their number. In addition, it is
difficult to be effective without professionally qualified staff (Okafor & IBadin, 2009; Cohen &
Sayag, 2010; Abu-Azza, 2012).

Table 4.5 Certification related to the profession

 Frequency Percent Valid Percent Cumulative
Percent

ACCA 2 13.3 13.3 13.3

CIA 3 20.0 20.0 33.3

Valid IFRS 5 33.3 33.3 66.7

No related certifications 5 33.3 33.3 100.0

Total 15 100.0 100.0

Source: Survey result by SPSS 2020

(D) Service year in Ethiopian Insurance Corporation

Respondents working experiences in Ethiopian Insurance Corporation ranged from five years
and less up to above twenty years. From the data collected 3(20%) respondents had less than five
years working experience. 2(13.30%) had six to ten years,5(33.33%) respondents eleven up to
fifteen years,4(26.70%) respondents sixteen to twenty years of experience and only
1(6.70%)respondent has greater than twenty years of experience. It shows that respondents had
remarkable work experience in EIC. Because majority of the respondents 5(33.30%) participants
had above ten years working experience and also 4(26.70%) respondents had sixteen to twenty
years of experience in EIC.
Descriptive statistics of the data are presented in table 4.6. Based on the participants’ response,
internal auditors in EIC had good working experience in insurance sector and better
understanding about their working environment.

Table 4.6 Service Year in Ethiopian Insurance Corporation

Frequency Percent Valid Percent Cumulative Percent

Less than 5 years 3 20.0 20.0 20.0

6 to 10 Years 2 13.3 13.3 33.3

Valid 11 up to 15 Years 5 33.3 33.3 66.7

16 up to 20 Years 4 26.7 26.7 93.3

Greater than 20 Years 1 6.7 6.7 100.0

Total 15 100.0 100.0

(E) The Current position in the organization
A current position of the respondents in their organizations was summarized into four parts:
Audit managers/supervisors, team leaders/assistants, senior auditors/officer and internal auditor.
Internal auditor that were 6 in number shared the leading percentage 40% and senior internal
auditors/officers 5 in numbers shared the next higher percentage 33.30%. Only 1 respondent that
possessed 6.70 % share were audit manager/supervisor and the other share, 20% was possessed
by 3 team leaders/assistants.
Majority of internal auditors (6 auditors, possessing 40%), according to the analysis results,
sided to Internal auditors and out of it the greater part was possessed by senior internal
auditors/officer (5 auditors, 33.30%) and then followed by team leader/assistants (3 auditors,
20%).

Table 4-7 the current position in the organization

  Frequency Percent Cumulative Percent
Vali Managers/Supervisors 1 6.67 6.67
d Team Leader/Assistant 3 20.00 20
  Senior Internal auditor/officer 5 33.33 33.33
  Internal auditor 6 40.00 40
  Total 15 100.00 100.00
           

Source: Survey result and SPSS output 2020

(F)Total Years of Audit Experience

Table 4-8 Total years of Audit experience

 Frequency Percent Valid Percent Cumulative
Percent

5-10 4 26.7 26.7 26.7

11-15 1 6.7 6.7 33.3

Valid 16-20 3 20.0 20.0 53.3

>20 7 46.7 46.7 100.0

Total 15 100.0 100.0

Source: Survey result by SPSS 2020

The implication of result shows the majority of the respondents are well experienced and can
perform their auditing activities by using their past audit experiences.

These quality levels could be summarized as: average mean values >4 = adequate; in between 4
>3.5= well/fair/good/healthy; between 3.5< and > 3.0 = inadequate; and average mean values <
3.0= poor quality.