Factors Affecting The Effectiveness Of Internal Audit In Public Sectors: The Case Of Oromia Regional State Shaggar City Burayu Sub-City

Abstract

The main objective of this study was to assess the factors affecting internal audit effectiveness in public sectors. The pertinent data was collected from internal auditors and finance officers through questionnaire. The collected data was analyzed using both descriptive statistical methods (such as mean and standard deviation) and inferential statistical methods (such as Pearson’s product moment and linear multiple regression). The finding of the study has shown that the effectiveness of internal audit is found to be high. The results have also shown that the four factors (such as auditors’ competency, auditors’ independence, management support and organizational setting) are positively correlated with internal audit effectiveness. However, only auditors’ independence has shown statistically significant relationship with the criterion variable. Furthermore, all the four independent variables making 81.8% of the contributions for internal audit effectiveness in the public sectors. Among the four factors only Auditors’ Independence and Auditors’ Competency significantly contributed to the variation in the criterion variable, audit effectiveness. Thus, the top management of the sector should understand that the contributions of these variables were collectively significant to identify any noncompliance activities in their office and to add values for the internal audit effectiveness in the sector