Determinants Of Internal Auditor’s Independence: The Case Of Selected Public Sectors In Ambo Town.

Abstract

The study of the independence of internal auditors in the public sector emphasizes the crucial role auditor’s play in ensuring transparency and accountability in government operations. The research aimed to examine the determinants of internal auditor independence in selected public sector offices in Ambo town, Ethiopia, focusing on four key organizational factors: experience, education, and competency. Using a quantitative research approach, data were collected through questionnaires from a sample of 70 internal auditors and senior officials internal Auditors across various public institutions, including the West Shoa Revenue Office, Ambo District Revenue Office, Ambo Finance Office, and local health and educational organizations. Descriptive statistical methods (such as percentages, mean, and standard deviations) were used to analyse the data, while inferential statistics, including correlation coefficients and multiple linear regression, were employed to explore the relationships between internal auditor independence and the independent variables. The findings revealed that all four factors— experience, education, and competency had a significant and positive impact on auditor independence. The regression analysis indicated that these variables explained 94.1% of the variation in internal auditor independence, underscoring the strength of the model. Based on these results, the study recommends that organizations invest in the professional development of internal auditors through targeted training and education programs. In addition the government would allocate adequate budget, logistic, strength audit committee commitment, audit quality. For future research, it suggests exploring qualitative factors influencing auditor independence and extending the study to include both public and private sectors to gain a broader understanding of the complexities affecting auditor independence across different organizational .