Determinants of Internal Audit Effectiveness in the Public Enterprise: the Case Study in Selected Ethiopian Public Enterprise Offices
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Date
2022-07-18
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A.A.U
Abstract
The main purpose of this study is to investigate on the determinants of internal audit
effectiveness in the selected Ethiopian public enterprise offices. This investigation is focused
on 10 purposely selected public enterprise offices that are expected to represent all other
sectors. The management teams and the internal auditors of the selected public enterprise
office are the source for the required data to the researcher through the questionnaires
administered. In addition, the finding of this study is to show the direct relation effects of
management perception, management support, organizational independence of internal
auditors, adequate and competent internal auditor’s staff and the presence of approved
internal audit charter with the internal audit effectiveness on the public sector
management. According to the regression output the management support, the existence of
adequate and competent IA staff, and the availability of approved IA charter were
contributed for the internal audit effectiveness in the public enterprise significantly and
positively. The remaining two variable; the managements perception for the IA value and
the organizational independent of internal auditors were positively related with the IAE
but their contribution for the IAE were statistically not significance. All of these five
independent variables are making 55.10% of the contributions for internal audit
effectiveness in the public enterprise offices. The public sector offices 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 IAE in the public
enterprise offices.