Determinants of Internal Audit Effectiveness in Ethiopia: The Case of Selected Budgetary Public Sectors

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Addis Ababa University


Internal audit effectiveness has received limited attention in the literature especially in the context of developing countries such as Ethiopia. Among these limited literatures little researches focused on public sectors. However, some of them done in a single company and the others are a mix of Public Enterprise, Share Company and Private Company. Due to this, as to the researcher’s understanding getting a complete clear picture on determinants of IA effectiveness related with budgetary public sectors was impossible. Therefore, the overall objective of this study was to identify determinants of internal audit effectiveness in Ethiopian budgetary public sectors which are located in Addis Ababa. The study used purposive sampling method and cover selected budgetary public sectors. The researcher used mixed research method by employing quantitative and qualitative research method. The quantitative research method used 85 usable self-administered questionnaires. These questionnaires were adapted and constructed in 5-point Likert scale and distributed to selected budgetary public sectors Internal Auditors and analyzed using Stata statistical software. The qualitative research method used document review in selected budgetary public sectors. According to the result of the study internal audit work quality & management supports have statistically significant positive relation with the effectiveness of internal audit. Independence of internal audit & competence of internal audit team have statistically insignificant relation with the effectiveness of internal audit.


A thesis submitted to the Department of Accounting and Finance, College of Business and Economics, Addis Ababa University, in partial fulfillment of the requirement of Master of Science (Msc) in Accounting and Finance


Ethiopian budgetary public sectors, Internal Audit, Internal Audit Effectiveness