Evaluation of Effectiveness of Internal Auditing Service in Southern Public Regional Bureaus, Ethiopia

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Evaluation of Effectiveness of Internal Auditing Service in Southern Public Regional Bureaus, Ethiopia

Journal Title: International Journal of Management, IT and Engineering - Year 2017, Vol 7, Issue 9

Abstract

An efficient and effective practice of internal auditing system is as a whole becomes vehicle for efficient and effective performance of the organization.The internal auditor is often considered one of the core pillars of corporate governance. Larger and more complex systems demand greater competency and professionalism from internal auditing, and scarce resources must be deployed more efficiently to minimize and manage risk. In line with this, the main purpose of the paper is evaluation of effectiveness of internal auditing system in government organizations in Ethiopia, especially in South Regional Bureaus. For achieving this objective, both primary and secondary data were drawn using questionnaires and interview and analyzed in the most appropriate techniques such as; frequency tables, percentages and chi-squared test. The study revealed that there was structural problem (reporting relationship) that impair the auditor independency and objectivity; there was not audit committee that leads to inefficient and ineffective internal audit work; therewas inadequate technical staff proficiency and high staff turnover due to absence of continuous professional development programs for internal auditors and lack of sufficient salary that can retain exiting staffs and attract new competent professionals. Furthermore, auditee departments and the managements did not see that the audit service can add value to their activity and to the organizationand theyhave not adequately supported the department. It was also evaluated that the scope of internal audit services is limited only tofinancial statement audit and performance audit is overlooked. Therefore, there should be extending the scope of internal audit services by including performance audit with appropriate risk analysis; increase technical proficiency of the internal audit staff and minimize staff turnover; creating proper relationship with key stakeholders by creating awareness on internal as internal audit service in the organizations can add value to the overall success of the organization; establishment of audit committee; amending the reporting structure of internal audit department that can allow adequate independence to internal auditors; put into practice internal and external audit quality assurance and improvement programs, and alleviating other impeding factors related to audit execution in the organizations under study.

Authors and Affiliations

Abdu Mohammed Assfaw

Keywords

Effectiveness Government Organizations Internal Audit

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