| Abstract: | Performance audit is a recent expansion in the scope of auditing. According to the International Organization of Supreme Audit Institutions, performance audit is an audit of economy, efficiency and effectiveness with which the audited entity uses its resources in carrying out its responsibilities. The role & understanding of internal audit activity concept in Ethiopia is not developed well. Most share companies in Ethiopia ignore the issues and paid less attention to plan a large amount of their audit time on these issues may lead for the company failures. The general objective of this study is to assess the role that internal audit specifically performance audit challenges in playing a role in order to protect & detect fraudulent activities in Bricks product processing share company. The study was conducted in Addis Ababa, Ethiopia at Brick Products Processing Share Company and the study problem was answered through a qualitative approach. The populations used for this research are from internal audit, Finance, Stores Procurement department & other related staffs. The analysis result depicts that, corruption is detected during all three types of audit: financial, compliance and performance. The result showed that, good quality auditing has a contribution in reducing levels of the sector corruption and higher quality auditing standards in the private sector had a pronounced effect on reducing corruption. The finding indicated that the major cause for diseconomy, inefficiency and failure to achieve results of audits are due to existence of corruption. Knowledge sharing and cooperation between stakeholders is important to improve their ability to meet the company objectives. The company should make memorandums of understanding to cooperate with each other, share knowledge and expertise, and run joint training sessions on corruption-related auditing. |
