Analysis Of Performance Audit Effectiveness: The Case Of Addis Ababa City Administration Office Of Auditor General

Abstract

The goal of the current study is to assess the performance audit practices and effectiveness in Addis Ababa City Government Office of the Auditor General. This study covered the period which performance audit has been already conducted during the five years from 2017-2021. The study used mixed research approach. The researcher preferred to use descriptive research design, which helps to use both qualitative and quantitative data analysis. The population of the study was AAOAG of external auditors and purposive sampling techniques was used to select those who have more than three year experience and better information and /or knowledge about the issue. Questionnaires were distributed to 50 internal auditors from Addis Ababa office of the auditor general and 50 auditee representatives from 11auditable office. Out of this 96 questionnaires were return, 4 auditee representatives did not return. Furthermore, four interviewers were interview, Auditor general, Deputy Auditor general of audit version, Audit quality control research and development audit directors, Performance audit directors were interviewed and result was analyzed on quantitative basis using descriptive statistics. The study found that the office has insufficient audit coverage, lack of adequate and competent professional auditors, lack of documentation, auditees’ do not submit an action plan and not take corrective action which is less commitment of auditee to follow up auditor recommendation, were influencing effectiveness of performance audit in the public sector. The study recommended that council of city administration has to support the office in implementing its legal mandate in terms of independence and the office should maintain attractive salary structure and adequate staff training program, law should enforced on audit entities to respond and take corrective action.