School of Graduate Studies Thesis Abstracts
- Published on Monday, 05 November 2012 21:26
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Assessment of Effectiveness and Determinants of Internal Auditing Service (Evidence from selected SNNPRS Public Regional Bureaus, Ethiopia
School of Management & Accounting, 2012
An efficient and effective practice of internal auditing system as a whole becomes vehicle for efficient and effective performance of the organization. The main purpose of the paper is not only to examine the issue at a theoretical level, but also to present empirical evidence for the interaction between determinants of effectiveness of internal auditing system and performance of internal auditing in government organizations in Ethiopia, especially in South Regional Bureaus. For achieving this objective both primary and secondary data were drawn and analyzed in the most appropriate technique such as; frequency tables, descriptive statistics, correlation and chi-squared test. The study revealed that internal audit is facing many challenges: lack of expertise leading to trivial auditing findings, lack of opportunity for professional development, wrong perception of the audit function and auditors by the staff of the public body. In the study, it was also identified that there was structural problem (reporting relationship) in the form of assigned task that impair the auditors’ independence; there was not audit committee or other overseeing body other that the management that leads to inefficient and ineffective internal audit work. Therefore, it is necessary to improve the above conditions in order to improve the weaknesses and to sustain the strengths of the IA department. It should be noted that the findings of this study were based on the Ethiopian, specifically in South Regional Bureaus context and internal audit settings. As a result, it is difficult to say that the findings of this research can be equally applicable to the private sector or for public enterprises or other non -government organizations too. Therefore, any generalizations of the findings here to other settings should be treated with caution. Despite these limitations, this study contributes to the literature of internal auditing reforms in public sector organizations by providing, to researcher’s knowledge, the first large cross-sectional assessment of internal auditing system implementation in Ethiopian public organizations.