ASSESSMENT OF INTERNAL AUDIT EFFECTIVENESS IN ROADS CONSTRUCTION SECTOR: CASE STUDY IN ETHIOPIAN ROADS AUTHORITY

Abstract

The objective of this study was to assess the Internal Audit effectiveness (management support, management’s perception of internal audit values, organizational independence of internal auditors, placement of adequate and competent internal audit staff, and the presence of approved internal audit charter) and to present the internal audit effectiveness in the Ethiopian Road Authority. The study employed a descriptive research methods and took the general population of ERA internal audit staff as a primary data source. The appropriate firsthand information was collected through structured questionnaires and interview. 45 questionnaires were distributed to the respondents. The main instrument for collecting primary data was self-administered questionnaire. The data was analyzed using both descriptive statistical like mean, median, standard deviation and narrative methods. Narrative analysis was used to explain the qualitative results of the survey. The study uncovered that, approved audit chart, existence of adequate and competent IA staff followed by organizational independence and management perception highly practical and affect the internal audit effectiveness in the ERA. However, even if there is skilled staff procedure, compliance and evidence collections are not completed on time because of ERA’s bureaucratic nature. Lack of regular and timely training for the IA staff is another challenge faced in ERA. The study pointed out that most of the recommended internal audit effectiveness is in place in ERA except a reservation on management support on internal audit. And Continuous training should be availed to the IA staff to keep up with the updates in the audit issue