Factors Affecting Internal Audit Effectiveness In Public Sectors: The Case Of Selected Public Sectors In West Shoa Zone, Oromia Regional State, Ethiopia.

Abstract

The objective of this study was investigating factors affecting internal audit effectiveness in public sectors: - The case of the public sector in the West Shoa Zone. The researcher collected information from primary and secondary sources. The source of the information collected through the questionnaires is from manager and internal auditors. Primary data was collected by giving a five point Likert scale question to the respondents of the sample. The study was conducted on the basis of purposive/judgmental sampling method and questionnaires were collected from 95 internal audit staff and purposively particular public sectors in West Shoa zone. This study had employed quantitative and qualitative research approach to examine the factors affecting effectiveness of internal audit via explanatory and descriptive research design. Statistical techniques such as the descriptive statistic, correlation and regression analysis were used to analyze the data from the survey. Descriptive and explanatory research designs were considered to achieve the aim of the study. The data analysis part was performed with SPSS version 26 (Statistical Package for the Social Sciences). Demographic variables were analyzed using descriptive statistics. Correlation and regression analyzes were used to determine the effect of independent variables on effectiveness of internal auditing. In addition, the finding of this study shows that there is a direct relationship between internal audit quality, independence of internal auditors, auditor proficiency, information technology and approved internal audit charter regarding the effectiveness of public sector internal audit in the West Shoa Zone. The regression result shows that each independent variable, internal audit quality, management support and information technology were positively related and significantly influenced effectiveness of internal auditing. The regression result shows that none of the independent variables, independence of internal auditors, auditor proficiency and approved internal audit charter, was positively related to the effectiveness of internal auditing did not significantly influence it. The researcher recommended that in order to increase the effectiveness of internal auditing with internal audit quality, the public sector should organize effective training and professional proficiency programs for internal auditors on time and on schedule, and the public sector in the West Shoa zone should pay more attention to the factors that positively affect the effectiveness of internal auditing, which are the independence of internal auditors, auditor's proficiency, management support, information technology and approved internal audit charter, plays a key role in the effectiveness of internal auditing