ASSESSMENT OF PERFORMANCE AUDIT PRACTICE: THE CASE OF ETHIOPIAN PUBLIC SECTOR ENTERPRISES

Abstract

Ethiopia attempts her best to eradicate poverty. Although there are many alternatives that assist to do so, the existing government was preferred to establish and run public sector enterprises that are engaged in various sectors throughout the country. Thus, they consist of organizations that have significant contributions to ensure the multilateral development of any country and improve the welfare of their societies. To successfully meet this, the need to auditing is unquestionable. There are three types of auditing. Among them, performance auditing is a recent, dynamic and key discipline that is vital to the existences and successes of public sector organizations. Despite its blessings, the possible challenges that encounter auditors should not be disregarded. These challenges resist auditors and managers to carry out their duties and responsibilities. Thus, to smooth these two extremes, there comes a need for the third parties: audit committees and board of directors. Both of these parties have numerous benefits and responsibilities. To assess this study, the researcher used primary and secondary data collection methods. The audit works of each organization are considered as value-adding profession. In contrast, there is an organization with no audit committee and no currently active internal audit manual. Surprisingly, most of them haven’t performance audit manuals and not carried out performance audit. Internal auditors aren’t with full of competent personnel. Computer assisted audit techniques have not exercised. There are questions of independences, too. Generally, all stakeholders should be committed to improve internal audit and achieve the objectives of performance audit works of public sectors to realize an economic growth of their ultimate society.