Challenges Facing Internal Audit Function the Case of Oromia Public Enterprises

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Date

2019-01

Journal Title

Journal ISSN

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Publisher

Addis Ababa University

Abstract

The main objective of this research was to investigate challenges facing the internal audit function that influence the oromia public Enterprises to tail their internal audit activities. The research was conducted on nine public Enterprises at head office level. Twenty internal auditors were used as data source who were selected using convenience sampling techniques. To obtain the required information open- ended and closed ended questionnaires was used as data gathering tools. Then quantitative and qualitative approaches were employed to analyze and interpret the filled in data. The findings related to challenges delaying adequacy of internal auditing revealed lack of independence, inadequacy of internal control system, inadequate skills among internal auditors, inadequate facilities at the internal audit department, inadequate funds to carry out internal audit, inadequate cooperation among role players, external auditors reluctance on works of internal audit, the lack of an audit action monitoring processes, inadequacy on segregation and appointments of duties as well as lack of commitment from management staffs were critical factors influencing internal audit functions of the respective public enterprises. To alleviate those problems, it is recommended that management, audit committee and the audit process owner of the respective public enterprises has to work jointly to improve the IAF of their respective public enterprises as per rules, regulations and requirements of international standards

Description

A Thesis Submitted to the College of Business and Economics Addis Ababa University, in Partial Fulfillment of the Requirements for the Masters of Degree in Accounting and auditing

Keywords

Audit, Internal Audit, Oromia, Public enterprises

Citation