Determinants of Internal Audit Effectiveness: In Oromia Special Zone Surrounding Finfinne Administration Finance and Economic Cooperation Office
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Date
2019-09
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Publisher
A.A.U
Abstract
The main purpose of the study is to identify the determinants of internal audit effectiveness in oromia special zone surrounding finfinne administration finance and economic cooperation offices. The study adopted a cross-sectional descriptive research design using quantitative method for data collection and analysis purpose. The researcher analyzed the collected data using descriptive statistics and inferential statists. Regressions result shows that in oromia special zone surrounding finfinne administration finance and economic cooperation offices has lower of mechanisms reached to 14.5% of audit accomplishment in place to follow up the implementation of internal audit recommendations; absence of strategic plan and consistent documentation styles for audit work, lack of resources, poor leadership for internal audit function (IAF), absence of appropriate framework to measure IAF performance, and lack of competent personnel are also some challenges of internal auditors. In other hand, given the fact from regressions result that internal audit activities are performed was found that to 1% of dynamic management process and more supportive environment, internal auditor expects senior management to take the first steps to support the internal audit process. Result, regarding to Independence/ Objective of internal audit has 5.5 % positively affected the internal audit effectiveness in oromia special zone surrounding finfinne administration finance 0and economic cooperation offices which is not significantly related to IA process. The result may have related to influence effective audit activities is independence and objective of auditors may enable the completion of auditing without interference. Result regarding to Competence of internal audit has 0.1% positively contributions to the internal audit effectiveness in oromia special zone surrounding finfinne administration finance and economic cooperation offices which have no significance relationship. Result regarding to the approved internal audit charter has 36.4 % negatively influences to the internal audit effectiveness in oromia special zone surrounding finfinne administration finance and economic cooperation offices which has a significance relationship to the existence of audit charter to organization influenced negatively by the senior management to flow the recommendations of the internal auditor which in turn affects internal audit effectiveness.
Description
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 in Accounting and Finance
Keywords
Approved internal audit charter, Internal audit, Management support