ASSESSMENT OF INTERNAL AUDIT PRACTICE: A STUDY ON SELECTED ETHIOPIAN PUBLIC ENTERPRISE

Abstract

The main purpose of this study is to assess the internal audit practices of selected Ethiopia public enterprise. The researcher used proportionate stratified sampling and selected 8 public enterprises from total of 46 populations size that are expected to represent all other public enterprises. Descriptive type of research design was used and the data were collected from managers and internal auditors by using questionnaires and document review. A sample of 56 respondents was selected purposively and given questionnaires 48 of them have properly filled and returned. Data was analyzed using statistical package for social scientist windows software. In addition, the finding of this study is to show the risk management process, the internal audit practice in the organization, the management perception for internal audit effectiveness, structures and activities of internal audit function and the internal audit functions in control models, and risk assessment methods were significant and important for internal audit practices and risk assessment on public enterprise. Results also showed that many public enterprises management were involved in the internal audit and other internal control staff in the risk assessment process, and few enterprises management was not involved. Therefore managements should be given high attention to the organization by involving in the internal audit and other internal control staff in the risk assessment process and should be uses their skill to identifying, evaluating, and controlling risks to achieving the enterprise goals and objective.