Degefa, Duressa(Dr.)Abate, Kebede2020-02-242023-11-042020-02-242023-11-042019-06http://etd.aau.edu.et/handle/123456789/20693A 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 FinanceAs per IIA statement, internal audit helps organizations to accomplish their objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes. With regard to this, MoF has taken different measures to strengthen and develop the internal audit system in the institutions according to the IIA standards. But the internal audits in government higher education institutions were ineffective to discharge their role as per the definition of internal auditing. The purpose of this study is to assessing challenges and prospects of internal audit activity in selected 8 universities through questionnaire, focus group discussion, reviewed annual plans, quarterly reports of internal audit and also revise ID assurance and improvement program reports. At the end we discussed with (MoF) Inspection Directorate Director, experts and human resource administration team.enThesis