The Effectiveness of Internal Audit Practice on Good Governance The Case of Selected Public Sectors in Southern Regional Government in Ethiopia

Abstract

The purpose of this study is to investigate the effectiveness of internal audit practice on good governance in the selected public sector offices in Southern Nation Nationalities people Regional State in Ethiopia. The research employed both quantitative and qualitative research approaches with descriptive design. The researcher used a self-administered questionnaire and a document review used to supplement interview data and improve the quality of findings made using quantitative techniques. To determine the sample size out of 44 sector Bureaus in SNNPRS, the researcher purposively selected 15 due to fact that major resources (budget of government) is allocated to them in order to achieve the Growth and Transformation plan II (GTP-II) from period 2015/2016 to 2019/2020. There are 475 professionals practicing in government accounting in relation to auditing and finance department in 15 purposively bureaus. Then, the researchers used mathematical formula to arrive at 95 sample size. The researcher used econometrics package SPSS version 20 software to analyze the data collected. The findings of the study shows that there is management Support for Audit Practice in public sectors, management s perception of internal newlineaudit function in public sectors, the organization independence of Internal Audit in public sectors of Southern Nations of Ethiopia. The study concluded that good governance has a direct relationship newlinewith management support, organizational independence, adequate and competent internal audits, and an adequate internal audit charter, but that there is also an indirect relationship between management perception, an approved, and internal audit function. The recommended that the bureaus should focus more on improving management support for internal audit activity in their companies than they already do in order to preserve support for internal audit work that is efficient and effective in protecting public resources and results in good governance.