DETERMINANTS OF INTERNAL AUDIT EFFECTIVENESS IN FRAUD PREVENTION: A CASE STUDY ON SELECTED PUBLIC ORGANIZATION

Abstract

This paper aims to identify that influence the effectiveness of internal audits conducted by Ethiopian public sector organizations. The primary goal is to investigate the relationship between the internal audit function, audit quality, and the prevention of fraud in public sector organizations. The study employs a mixed research methodology, integrating both qualitative and quantitative approaches. A questionnaire survey was administered to a sample of 140 managers, internal auditors, and accountants in selected public sector organizations, and the data was analyzed using SPSS 25 software. The findings reveal a statistically significant and positive relationship between the variables, indicating that internal audit efficacy for fraud prevention is positively correlated with professionalism, aptitude, and the objective of internal audit quality. The study also found a statistically significant positive correlation between internal audit function, audit quality, and the prevention of fraud in public sectors and other enterprises. The results of this study have important implications for the practice of internal auditing in Ethiopian public sector organizations and provide valuable insights for policymakers and stakeholders.