Determinants of internal Audit Effectiveness in the public sector The Case of Holeta Town

Abstract

The purpose of this study was to investigate determinants of internal audit effectiveness in Oromia region Holeta town local Administrations. Hence, descriptive and explanatory research design was considered. Data collection includes questionnaire and observation. The sample includes 5 auditors, 7 top level management, 17 employees form audit department and 30 employees other finance department. The researcher collected data from primary sources. The primary data was collected by distributing questioner to the sampled respondent. To analyses the collected data the study use descriptive statistics, correlation statistics and econometrics model. The Internal Audit department studied has low technical staff proficiency and high staff turnover, which would limit its capacity to provide effective service to the management. Based on the finding of the study recommends that the office of finance has to maintain the investigative and reporting independence of internal auditors. Finally it is recommended of the study showed that Internal Auditors should be capacitate by giving standard training in order to cover the gap of all deficiencies of audit professionals. Both Oromia finance office and the management should take into account the shortage of manpower in the internal audit department. Besides, the internal audit offices have to do for the development of internal auditors through continuous education and short term training so as to enhance the level of internal audit effectiveness.