Practice, Challenges and Prospects of Internal Auditors in Some Selected Social Sectors of Federal Public Budgetary Organization

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Addis Ababa University


The purpose of this study is to identify the current practice, major challenges and prospects of internal auditor’s in performing their audit function in some selected social sector federal public organization and how they affect the public finance and working atmosphere and also recommend to be taken in reducing these challenges. To achieve the objectives of this study the researcher used primary and secondary data. Primary source involves interview and questionnaires, in which 75 questionnaires administered to the staff of Accounting, Internal audit department and MOF inspection directorate staff of 15 from a total of 75 social sector federal public organization. Interview was conducted from head of internal audit, finance and inspection directorate director. And secondary data were collected from MOF inspection directorate annual report, MOF (2005) Internal Audit Manual, Standards and Implementation Guide, proclamations and other related documents. The descriptive statistics analyzed using mean and standard deviation by using SPSS (20) software. The major findings reveals that Detailed Audit work program is not prepared, annual audit plan is not properly implemented, internal audit reports are not prepared as per the standards and also do not submitted to on time, lack of skill and knowledge at the level in which the professions demands to be, there is no special benefit given to motivate them for their unique contribution, staff shortages, lack of awareness & training and recognizing internal auditors as fault finders by management are the main basic challenges internal auditors. In light of the findings, the researcher recommended proper attention needs to be given by top level managers and government higher official for internal audit should implement audit program, risk assessment as part of audit planning, continuous professional developments, and improvement of auditors remuneration and fringe benefits to encourage performance to bring a change in public finance.


A Research Project Submitted To The Department Of Accounting And Finance In Partial Fulfillment Of The Requirements For The Degree Of Master Of Art In Accounting And Auditing


Audit, Challenges of internal auditor, Public organization