Uncovering the challenges of internal audit unit at public sector: The case of north Shewa zone, Amhara, Ethiopia

The aim of the study is to assess challenges of the internal audit units in public sector offices of North Shewa Zone, Ethiopia. Quantitative research approach has been adopted and data were collected with questionnaire designed for the purpose. The study has applied the descriptive research design. Sample has been collected deploying purposive and judgmental sampling technique. The data are coded and analysed using SPSS. The findings reveal that the degree of independence in internal audit is low to some extent. However, certain factors may impair this level of independence and objectivity. Furthermore, management is fully aware about the need of internal audit but among other things that management is weak in implementing recommendations of audit report and internal auditors have regular access to organisation plan but they have no regular access to data, products, facilities and records of the organisation to perform independent evaluation to report the audit work. In additionally, the internal audit unit is not adequately equipped in terms of number of personnel who have adequate expertise and training in Accounting, Auditing and other Business oriented programmes. The study concludes that the internal auditing practices at public sectors are mostly not in line with the practices and procedures enshrined in the Institute of Internal Auditors (IIA) standards and code of ethics. Finally, the study recommends among other things that regular refresher courses should be organised for the staffs of the internal audit unit. Management should also undergo regular training programs and workshops to enhance their skills and knowledge.