ASSESSMENT OF INTERNAL AUDITING EFFECTIVENESS (IN CASE OF FINANCE AND ECONOMIC ADMINISTRATION OF WOLKITE TOWN)

Abstract

This study aimed at assessment of internal auditing effectiveness in finance and economic administration office of Wolkite. The study used judgmental sampling technique to select respondents contingent on their responsibilities and willingness to reply to numerous questions and used descriptive data analysis method to show accurately the characteristics of particular internal audit situations. According to the outcome, the internal audit department is organized to control the expenditures, economic performance and in other works related to financial activities. The finding of the research indicated that the organization have developed faith in internal audit works to ensure independence of internal audit from the audits. Even though the surviving internal auditors are fit in terms of experience, they are not competent due to the lack of the upgrading of educational level and training of internal auditing in the organization. Based on the financial audit division head the practices in the organization like governmental rules and regulations have been followed and procedural tests such as flow charts and manuals have been surveyed to give adequate services for the patrons. In addition, more than half of respondents were trusted the operational division consistent and honesty in operating information, and perform as per the objectives and goals. The study highlights that internal audit effectiveness is strongly influenced by internal audit quality. In the organization, experienced professionals should be invited to increase the productivity. Internal audit employees should have to upgrade their educational level to be effective and efficient in their performance