Abstract:
The establishment of IA function is important as an essential internal assurance mechanism in public universities internal controls and as a tool for monitoring and evaluating financial management activities in public universities. It also helps an organization to accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, internal control, and governance processes. The purpose of this study is to examine the factors affecting internal audit effectiveness in Amhara region public universities by focus on seven Amhara region public universities. The data consumed under this study was primary by nature and collected from the targeted respondents i.e. from the management team and internal auditors through the questionnaires in five point Likert scale form. This study had employed quantitative research approach to examine the factors affecting internal audit effectiveness via explanatory and descriptive research design. Statistical techniques such as the descriptive statistic, correlation and regression analysis were used to analyze the data from the survey. The findings of this study showed that the effectiveness of IA is positively affected by the Auditee attribute, management support, organizational independence, adequate and competent internal audit staff, and internal audit function reengineering. Even though all independent variable positively affect internal audit effectiveness, as per their significant level of effects, auditee attribute followed by organizational independence and the adequate and competent internal audit staff respectively were the major determinant factors for the effectiveness of the internal audit in the Amhara region public universities. Therefore those universities should have to give more emphasis on improving the attribute of auditee and making internal audit independent and also employee competent enough and adequate internal auditor.
