P. Laxmilkantham(PhD)Fikre, Gedefa2019-10-112023-11-042019-10-112023-11-042019-06http://etd.aau.edu.et/handle/123456789/19395A thesis submitted to department of accounting and finance, college of business and economics, Addis Ababa university in partial fulfillment Of the requirement for the degree of Master of Science in Accounting and FinanceFinancial performance requires appropriate internal audit practices to improve efficiency. For the purpose of this study the researcher sought to determine the effect of internal audit on financial performance in Bureau of Finance & Economics Development in Oromia Region state. Internal audit was looked at from the perspective of internal audit standards, professional competency, internal controls, and support of management and independence of internal audit. The researcher administered a survey questionnaire to each member of the target population since it was the most appropriate tool to gather information. Quantitative analysis and regression analysis were used as data analysis technique. Descriptive statistics such as mean, standard deviation and frequency distribution were used in the analysis of data. Data presentation was done by use of tables for ease of understanding and interpretation. From the findings, the study concludes that, independence of internal audit, professional competency and internal control had a positive relationship and also internal audit standards and support of management had a negative relationship with financial performance of organization.The studied found that a unit increase in independence of internal audit, professional competency ,internal audit standards ,support of management ,andinternal control would lead to increase a in financial performance of organization and further unit increase in internal control would lead to increase in financial performance of organization.From the literature review, several researchers seem to be together that there was a relationship between internal audit and financial performance of an organization. These conclusions would confirm after empirical evidence would obtain from the research and not identify prefer studied how support of management and Understanding more effective, concerns on audit software‘s Such as IBEX, automation, fraud detection, audit exporting, data mining and network security internal audit unit needs much more emphasis. This providing gabs to study as explain above.The study recommends that management in organization should adopt effective internal audit practices such as internal auditing standards, independence of internal audit, professional competency, management support and internal controls to extend financial performance of the Bureau of Finance & Economics Development.en-USFinancial performanceInternal audit standardsProfessional competencySupport of managementThesis