Determinants of Internal Audit Effectiveness: Evidence from Gurage Zone

Abstract

This study aims at identifying main determinants of internal audit effectiveness in Gurage zone local Administrations. Hence, descriptive and explanatory research design was considered. The survey includes 60 respondents; using simple random sampling Woredas were selected and all units of each selected were included. The researcher collected data from primary sources. The primary data has been collected by distributing five scale likert scale questioner to the sampled respondent. To analyse the collected data the study use descriptive statistics, correlation statistics and econometrics model. A total of five explanatory variables were included in the regression and the results of the model show that quality of internal audit, independency of internal audit and proficiency of internal auditors are positively affect internal audit effectiveness. Based on the finding the study recommends that the Office of Finance and Economic development has to maintain the investigative and reporting independence of internal auditors. 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.

Keywords: Internal Audit; Audit Effectiveness; Ethiopian Public Sector, Proficiency of Auditors