The Role of Internal Audit Quality in Promoting Public Sector Performance: Evidence from South Nations, Nationalities and Peoples Regional State, Ethiopia

Abstract

The quality of internal audit plays a significant role in enhancing public sector bureaus performance by bringing effective and efficient use of the public resource. So, the objective of this study was to examine the role of internal audit quality on performance of public sector bureaus in southern Ethiopia. To this end, the researcher employed quantitative research approach with explanatory research design where the effect caused by the independent variable on the dependent variable is observed through regression analysis. The primary and secondary data were collected. Then, both descriptive and inferential statistics analysis (multiple linear regression) have been done through SPSS version 21.0 in order to get the reliable research findings. Consequently, the result of regression analysis showed that out of five variables incorporated in the multiple linear regression model, four variables such as independency of internal audit, competency of internal audit staff, management support, and formal mandate of internal audit have positive and statistically significant impact on public sector performance. Whereas internal audit standard was not statistically significant. Based on the findings of the study, the researcher forwarded possible recommendations for bureaus to work on independency of internal audit, competency of internal audit staff, management support, and formal mandate of internal audit due to the fact that they are statistically significant and has positive influence public sector performance of bureaus in southern Ethiopia.

Keywords: Quality of Internal Audit, Public Sector Performance, Southern Ethiopia

DOI: 10.7176/RJFA/10-17-05

Publication date:September 30^th 2019