ASSESSMENT OF INTERNAL AUDIT EFFECTIVENESS: THE CASE OF OFFICE OF FEDERAL AUDITOR GENERAL (OFAG)

Abstract

The purpose of this study is to assess the effectiveness of internal audit in the Office of Federal Auditor General (OFAG) and to identify the factors that influence it. The study adopts a mixed-methods approach, combining quantitative and qualitative data from primary and secondary sources. The quantitative data consists of 60 self-administered questionnaires using a 5-point Likert scale, distributed to internal auditors of OFAG and analyzed using SPSS software. The qualitative data consists of personal interviews with internal auditors, audit managers, audit committees, and directors of OFAG, as well as document reviews. The study focuses on the head office of OFAG and uses purposive sampling to select the participants. The study examines the effects of six variables on the effectiveness of internal audit: effectiveness of internal audit itself, management support, audit committee/board, competency of internal auditors, internal audit process, and organizational culture. The results show that all six variables have a strong and statistically significant impact on the effectiveness of internal audit in terms of value-adding role and enhancing department performance. The study provides insights into the strengths and weaknesses of the internal audit function in OFAG and offers recommendations for improvement.