Empowering the Internal Audit Function for Effective Role in Risk Management. A Study of Micro Finance Banks in Anambra State, South East, Nigeria

Abstract

This study investigates the challenges facing the internal audit function in Microfinance banks and how such challenges can be ameliorated to enable it play a more effective role in risk management. A survey research design was adopted for this study. Our population consists of 72 micro finance banks operating in Anambra State,South-East, Nigeria. A sample of 18 banks was selected for the study. The instrument of data collection was a structured questionnaire served on 135 employees of the banks. Descriptive statistics were used to analyse the responses. Our findings include that lack of access to relevant information constitute the greatest set back to internal auditors in their role in risk management. Lack of adequate training was also another major impediment. We recommend unfettered access to information, constant training and retraining for internal audit staff and demarcation of clear lines of responsibility, and reporting to top management by the internal audit.