Abstract:
The main purpose of this study is to investigate on the determinants of internal audit
effectiveness in the Hadiya zone’s public finance and economy development sector offices (in
SNNPR, Ethiopia). This investigation is focused on all 10 woredas (WoFED) and 2 Hossana
Administrative-towns public finance and economy development sector offices. The
management teams and the internal auditors from a l l o f t h e public finance and economy
development sector office are the sources for the required data to the researcher through
the questionnaires administered. The resea r ch design used in this study is
cross-se ctional. In addition, the findings of this study are to show the direct relation
effects of management perception, management support, organizational independence of
internal auditors and adequate and competent internal auditor’s staff with the internal
audit effectiveness on the public finance and economy development sector
management. According to the regression output, the management support and the
existence of adequate and competent internal audit staff were contributed for the internal
audit effectiveness in the public finance and economy development sector significantly
and positively. The remaining two variables; the management's perception for the internal
audit value and the organizational independent of internal auditors were positively
related with the internal audit effectiveness but their contribution for the internal audit
effectiveness was statistically not significance. All of these four independent variables
are making 50.7% of the contributions to internal audit effectiveness in the public
finance and economy development sector offices. The public finance and
economy development sector offices should understand that the contributions of these
variables were collectively significant to identify any noncompliance activities in their office
and to add values for the inte
