Abstract:
Purpose- the purpose of this research paper is to explore the problems faced by the
internal auditors of the banks working in Pakistan. The main objective is to reveal the
problems created by the culture of Pakistani Banks and from the attitude of the Auditee.
Methodology/sample- This research is an exploratory research in which the key factors
are highlighted from the review of various literature reviews and from the informal
interviews carried with the internal auditors. These independents variables are tested on
the selected banks which are FBL, HBL, UBL and MCB. Questionnaire has been drafted
which is based on the selected theoretical framework. These have been filled from total
80 respondents which are the internal auditors of this selected bank working in Karachi.
Findings- based on the descriptive and inferential analysis it has been concluded that
lack of trust is present between the auditor and Auditee, lack of co-operation from
Auditee, negativity of the work audit, fear of audit, difficulties are faced in establishment
of findings, Auditee operational duties, lack of Auditee understanding and knowledge of
standards and prudential regulations, lack of departmental heads support(leadership
support), lack of audit staff resource, culture of banks, seriousness in implementation of
audit recommendations and lack of budget allocated to audit are the main problems
which create hindrance in the work of internal auditors.
Practical Implications- This research is highly significant for the banking sector of
Pakistan particularly for the selected banks which are FBL, HBL, UBL and MCB. This
research assist the management of the bank particularly to the audit committee and board
of directors which have the main responsibility for the establishment and the work of the
internal audit department and provide internal auditor an environment through which
their effectives can be achieved
