Factors Influencing Effectiveness of Internal Audit in Addis Ababa Administration, in the Case of Lemi Kura Sub City Public Sectors’

The study aimed to investigate the factors influencing the effectiveness of internal audit in the public sectors of Lemi Kura Sub City. A mixed-methods approach was employed, combining quantitative data from a structured survey questionnaire and qualitative data from in-depth interviews. The target population consisted of senior managers and internal auditors, and a census approach was utilized, encompassing the entire population of 131 individuals. The study was utilized both primary and secondary sources. The findings reveal significant and positive relationships between several factors and internal audit effectiveness. Top management support, IA independence, audit committee involvement, internal auditors' competency, and audit quality demonstrate a strong positive correlation with internal audit effectiveness. However, the analysis indicates that the organizational setting has a positive but insignificant relationship with internal audit effectiveness. The study also shown that internal audit practitioners face significant challenges, including resource constraints, lack of management support, difficulties in maintaining independence and objectivity, organizational dynamics, and regulatory changes, emphasizing the need to address these challenges to enhance internal audit effectiveness and improve risk management and compliance processes. According to the study finding the recommendations was made include measures to improve top management support, strengthen IA independence, address organizational setting issues, and enhance the role of audit committees. The findings and recommendations can guide senior management, and internal auditors in enhancing internal audit practices and ultimately improving overall organizational performance and accountability in the public sectors of Lemi Kura Sub City, Addis Ababa.