Abstract:
The purpose of this study is to investigate the determinants of internal audit effectiveness in the selected Ethiopian Federal transport public sector offices. This investigation is focused on 13 purposely selected public sector offices that are expected to represent all other public sectors by using cross sectional analysis. The chief managements and the internal auditors of the selected public sector office are the source for the required data to the researcher through the questionnaires administered. Accordingly, the results of this study proved that competence of internal auditors, independence of internal audit activities, management support and perception as well as methodology/process of internal audit have plays a vital role for effectiveness of internal audit in the selected public sector offices. According to the regression output of the study management support, the existence of adequate and competent IA staff, and the availability of approved IA charter have contributed for the internal audit effectiveness. The remaining two variables; the managements perception for the IA value and the organizational independent of internal auditors were positively related with the IAE but statistically not significant. The study recommended that management to put more emphasis on the support received by the internal auditors and support the internal audit by providing the department with adequate budgetary allocations. The management should give more autonomy to the internal audit by minimizing interferences, availing documentation whenever required and giving them permission for access to any office or documentation in the organization/departments. The management should ensure that the internal auditors are recruited in their right proportion so as to reduce shortage of internal auditors in these organizations for effectiveness. Furthermore management to encouraging the corporation between approved internal Audit charter and the internal auditors as they are charged with the responsibility of ensuring the wellbeing of the internal audit.
Finally, the study proposed that future research should focus on all public sectors in Ethiopia, and that a broad based study on role of Internal Audit on organizational performance in both private and public organizations shall be stated as possible implication for different parties who are concerned.
