THE EFFECT OF INTERNAL AUDIT QUALITY ON ORGANIZATIONAL PERFORMANCE IN THE CASE OF ETHIOPIAN ROADS AUTHORITY

Abstract

The objective of this study was to investigate the effect internal audit quality on organizational performance in Ethiopian Roads Authority. The researcher uses quantitative approach from primary source with a total of 145 employees participated in the study and the data‟s were analyzed using descriptive and multivariate analysis, specifically. The results show that competence of internal auditor, independence of internal auditor team, approved internal audit manual and management support all have a significant positive effect on organizational performance on Ethiopian road authority. The finding also shows independence of internal team auditors and competence of internal auditors are the most important internal audit quality variables to affect organizational performances. The creation organizational structure which makes the internal audit directorate more independent and planning and implementing training and development programs that improve competences of the employees are recommended.