| Abstract: | The majority of businesses in Ethiopia don't have an internal audit department. People who have internal audit departments despise them. They are not subject to the advantages of having an internal audit. The majority of studies on internal audit effectiveness were done outside of Ethiopia, and no systematic, extensive research has yet been done in Ethiopia on the subject. This study aimed to assess Factors Affecting Internal Audit Efficiency: A Case of Commercial Nominees plc. It used both quantitative and qualitative data collection approaches to evaluate the factors affecting internal audit efficiency. The target populations of the study were employees of Commercial Nominees Plc, working under the Addis Ababa head office and 8 branches and under the Human Resource Development Department, for a total of 270 employees. The research used a stratified random sampling method to select the sample for the study, which included 25 respondents from the administration, 14 respondents from directors, 50 respondents from managers, 24 respondents from accountants, 7 respondents from auditors, 7 respondents from service supervisors and other outsourced finance officers, and 35 respondents from other departments. This study found that the impacts of internal organization, internal audit quality, management support, and competencies of internal audit on internal audit efficiency were found to be 0.806, 0.753, 963, and 0.972 at P = 0.000, respectively. The correlation coefficient (P) between impacts of internal organization, internal audit quality, management support, and competencies of internal audit with internal audit efficiency was found to be 0.806, 0.753, 963, and 0.972 at P = 0.000, respectively. This suggests that the four variables are closely related and that management support is the major determinant of the IA's effectiveness. The coefficient table also revealed that the competencies of internal audit have a high impact on efficiency, followed by internal organization, quality, and management support. Internal auditors should give special consideration to the impacts of internal organization, management support, and the competencies of internal audit, as well as adequate resources, facilities, and vehicles, adequate audit staff, adequate communication between auditors and auditee, and adequate education. This study found that competencies in internal audit had a high impact on internal audit efficiency, followed by internal organization, quality, and management support. Internal audit needs to focus on corporate governance, effective oversight, and sound internal controls, with support from management. |
