Abstract:
Internal auditing is crucial for maintaining organizational performance. This study investigates
the effectiveness of internal auditing within the Ethiopian Railway. The research examines how
various factors like Technology Utilization, Competence and Expertise, Audit Committee
Relationship, External Auditor Reliance, Independence and Objectivity, Quality of Audit Work,
Management Support, and Continuous Improvement impact internal audit effectiveness. A total
of 32 respondents were taken using Census sampling techniques and gather information using
structure questionnaire. Both descriptive and multiple regression analysis were applied to
analyses the collected data using SPSS Version 25 software. The findings reveal that several key
variables, including Quality of Audit Work, Continuous Improvement, External Auditor Reliance,
Audit Committee Relationship, Technology Utilization, and Independence and Objectivity,
significantly impact internal audit effectiveness at the 5% significance level. These factors were
essential for enhancing the internal audit function, emphasizing the need for high-quality audits,
ongoing improvements, effective collaboration with external auditors, and robust audit
committee support. Additionally, integrating advanced technology and maintaining auditor
independence were also critical for audit effectiveness. To improve internal audit effectiveness
within the Ethiopian Railway, management should focus on enhancing audit quality, adopting
technological advancements, and fostering strong relationships with external auditors and the
audit committee. Addressing these areas will bolster the internal audit function, support the
railway’s strategic objectives, and contribute to Ethiopia’s broader economic development
