Internal Audit Quality and Its Impact on Public Sector Organizational Performance: Evidence from Sector Bureaus of Southern Ethiopia

Kanbiro Orkaido Deyganto

doi:doi:10.11648/j.ijeee.20190406.12

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Internal Audit Quality and Its Impact on Public Sector Organizational Performance: Evidence from Sector Bureaus of Southern Ethiopia

Kanbiro Orkaido Deyganto

Published in International Journal of Economy, Energy and Environment (Volume 4, Issue 6)

Received: 29 June 2019 Accepted: 31 July 2019 Published: 30 December 2019

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Abstract

The quality of internal audit plays a significant role in enhancing organizational performance of public sector bureaus. So, the objective of this study was to examine the effect of internal audit quality on organizational performance of public sector selected bureaus in southern Ethiopia. To this end, the researcher employed quantitative research approach with explanatory research design where the effect caused by the independent variable on the dependent variable is observed through regression analysis. The primary data was collected using structured questionnaire from 112 respondents out of total 148 respondent’s selected using simple random sampling technique from bureaus of southern Ethiopia. Then, both descriptive and inferential statistics analysis (multiple linear regression) have been done through SPSS version 21.0 and E-views version 9 in order to get the reliable research findings. Consequently, the result of regression analysis showed that, four variables such as independency of internal audit (positive), competency of internal audit staff (positive), management support (positive), and formal mandate of internal audit (positive) and statistically significant out of eight variables incorporated in the model. Whereas, other explanatory variables like objectivity, internal audit standard, competent leadership and unrestricted access to audit evidence were not statistically significant respectively. Based on the findings of the study, the researcher forwarded possible recommendations for bureaus to work on independency of internal audit, competency of internal audit staff, management support, and formal mandate of internal audit due to the fact that they are statistically significant and has positive influence in improving internal audit quality on one hand and organizational performance of bureaus on the other hand.

Published in	International Journal of Economy, Energy and Environment (Volume 4, Issue 6)
DOI	10.11648/j.ijeee.20190406.12
Page(s)	118-131
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Quality of Internal Audit, Organizational Performance, Public Sector Bureaus, Southern Ethiopia

References

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Kanbiro Orkaido Deyganto. (2019). Internal Audit Quality and Its Impact on Public Sector Organizational Performance: Evidence from Sector Bureaus of Southern Ethiopia. International Journal of Economy, Energy and Environment, 4(6), 118-131. https://doi.org/10.11648/j.ijeee.20190406.12

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ACS Style

Kanbiro Orkaido Deyganto. Internal Audit Quality and Its Impact on Public Sector Organizational Performance: Evidence from Sector Bureaus of Southern Ethiopia. Int. J. Econ. Energy Environ. 2019, 4(6), 118-131. doi: 10.11648/j.ijeee.20190406.12

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AMA Style

Kanbiro Orkaido Deyganto. Internal Audit Quality and Its Impact on Public Sector Organizational Performance: Evidence from Sector Bureaus of Southern Ethiopia. Int J Econ Energy Environ. 2019;4(6):118-131. doi: 10.11648/j.ijeee.20190406.12

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@article{10.11648/j.ijeee.20190406.12,
  author = {Kanbiro Orkaido Deyganto},
  title = {Internal Audit Quality and Its Impact on Public Sector Organizational Performance: Evidence from Sector Bureaus of Southern Ethiopia},
  journal = {International Journal of Economy, Energy and Environment},
  volume = {4},
  number = {6},
  pages = {118-131},
  doi = {10.11648/j.ijeee.20190406.12},
  url = {https://doi.org/10.11648/j.ijeee.20190406.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijeee.20190406.12},
  abstract = {The quality of internal audit plays a significant role in enhancing organizational performance of public sector bureaus. So, the objective of this study was to examine the effect of internal audit quality on organizational performance of public sector selected bureaus in southern Ethiopia. To this end, the researcher employed quantitative research approach with explanatory research design where the effect caused by the independent variable on the dependent variable is observed through regression analysis. The primary data was collected using structured questionnaire from 112 respondents out of total 148 respondent’s selected using simple random sampling technique from bureaus of southern Ethiopia. Then, both descriptive and inferential statistics analysis (multiple linear regression) have been done through SPSS version 21.0 and E-views version 9 in order to get the reliable research findings. Consequently, the result of regression analysis showed that, four variables such as independency of internal audit (positive), competency of internal audit staff (positive), management support (positive), and formal mandate of internal audit (positive) and statistically significant out of eight variables incorporated in the model. Whereas, other explanatory variables like objectivity, internal audit standard, competent leadership and unrestricted access to audit evidence were not statistically significant respectively. Based on the findings of the study, the researcher forwarded possible recommendations for bureaus to work on independency of internal audit, competency of internal audit staff, management support, and formal mandate of internal audit due to the fact that they are statistically significant and has positive influence in improving internal audit quality on one hand and organizational performance of bureaus on the other hand.},
 year = {2019}
}

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TY  - JOUR
T1  - Internal Audit Quality and Its Impact on Public Sector Organizational Performance: Evidence from Sector Bureaus of Southern Ethiopia
AU  - Kanbiro Orkaido Deyganto
Y1  - 2019/12/30
PY  - 2019
N1  - https://doi.org/10.11648/j.ijeee.20190406.12
DO  - 10.11648/j.ijeee.20190406.12
T2  - International Journal of Economy, Energy and Environment
JF  - International Journal of Economy, Energy and Environment
JO  - International Journal of Economy, Energy and Environment
SP  - 118
EP  - 131
PB  - Science Publishing Group
SN  - 2575-5021
UR  - https://doi.org/10.11648/j.ijeee.20190406.12
AB  - The quality of internal audit plays a significant role in enhancing organizational performance of public sector bureaus. So, the objective of this study was to examine the effect of internal audit quality on organizational performance of public sector selected bureaus in southern Ethiopia. To this end, the researcher employed quantitative research approach with explanatory research design where the effect caused by the independent variable on the dependent variable is observed through regression analysis. The primary data was collected using structured questionnaire from 112 respondents out of total 148 respondent’s selected using simple random sampling technique from bureaus of southern Ethiopia. Then, both descriptive and inferential statistics analysis (multiple linear regression) have been done through SPSS version 21.0 and E-views version 9 in order to get the reliable research findings. Consequently, the result of regression analysis showed that, four variables such as independency of internal audit (positive), competency of internal audit staff (positive), management support (positive), and formal mandate of internal audit (positive) and statistically significant out of eight variables incorporated in the model. Whereas, other explanatory variables like objectivity, internal audit standard, competent leadership and unrestricted access to audit evidence were not statistically significant respectively. Based on the findings of the study, the researcher forwarded possible recommendations for bureaus to work on independency of internal audit, competency of internal audit staff, management support, and formal mandate of internal audit due to the fact that they are statistically significant and has positive influence in improving internal audit quality on one hand and organizational performance of bureaus on the other hand.
VL  - 4
IS  - 6
ER  -

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Author Information

Kanbiro Orkaido Deyganto

Accounting and Finance Department, Dilla University, Dilla, Ethiopia

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APA Style

Kanbiro Orkaido Deyganto. (2019). Internal Audit Quality and Its Impact on Public Sector Organizational Performance: Evidence from Sector Bureaus of Southern Ethiopia. International Journal of Economy, Energy and Environment, 4(6), 118-131. https://doi.org/10.11648/j.ijeee.20190406.12

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ACS Style

Kanbiro Orkaido Deyganto. Internal Audit Quality and Its Impact on Public Sector Organizational Performance: Evidence from Sector Bureaus of Southern Ethiopia. Int. J. Econ. Energy Environ. 2019, 4(6), 118-131. doi: 10.11648/j.ijeee.20190406.12

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AMA Style

Kanbiro Orkaido Deyganto. Internal Audit Quality and Its Impact on Public Sector Organizational Performance: Evidence from Sector Bureaus of Southern Ethiopia. Int J Econ Energy Environ. 2019;4(6):118-131. doi: 10.11648/j.ijeee.20190406.12

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@article{10.11648/j.ijeee.20190406.12,
  author = {Kanbiro Orkaido Deyganto},
  title = {Internal Audit Quality and Its Impact on Public Sector Organizational Performance: Evidence from Sector Bureaus of Southern Ethiopia},
  journal = {International Journal of Economy, Energy and Environment},
  volume = {4},
  number = {6},
  pages = {118-131},
  doi = {10.11648/j.ijeee.20190406.12},
  url = {https://doi.org/10.11648/j.ijeee.20190406.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijeee.20190406.12},
  abstract = {The quality of internal audit plays a significant role in enhancing organizational performance of public sector bureaus. So, the objective of this study was to examine the effect of internal audit quality on organizational performance of public sector selected bureaus in southern Ethiopia. To this end, the researcher employed quantitative research approach with explanatory research design where the effect caused by the independent variable on the dependent variable is observed through regression analysis. The primary data was collected using structured questionnaire from 112 respondents out of total 148 respondent’s selected using simple random sampling technique from bureaus of southern Ethiopia. Then, both descriptive and inferential statistics analysis (multiple linear regression) have been done through SPSS version 21.0 and E-views version 9 in order to get the reliable research findings. Consequently, the result of regression analysis showed that, four variables such as independency of internal audit (positive), competency of internal audit staff (positive), management support (positive), and formal mandate of internal audit (positive) and statistically significant out of eight variables incorporated in the model. Whereas, other explanatory variables like objectivity, internal audit standard, competent leadership and unrestricted access to audit evidence were not statistically significant respectively. Based on the findings of the study, the researcher forwarded possible recommendations for bureaus to work on independency of internal audit, competency of internal audit staff, management support, and formal mandate of internal audit due to the fact that they are statistically significant and has positive influence in improving internal audit quality on one hand and organizational performance of bureaus on the other hand.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - Internal Audit Quality and Its Impact on Public Sector Organizational Performance: Evidence from Sector Bureaus of Southern Ethiopia
AU  - Kanbiro Orkaido Deyganto
Y1  - 2019/12/30
PY  - 2019
N1  - https://doi.org/10.11648/j.ijeee.20190406.12
DO  - 10.11648/j.ijeee.20190406.12
T2  - International Journal of Economy, Energy and Environment
JF  - International Journal of Economy, Energy and Environment
JO  - International Journal of Economy, Energy and Environment
SP  - 118
EP  - 131
PB  - Science Publishing Group
SN  - 2575-5021
UR  - https://doi.org/10.11648/j.ijeee.20190406.12
AB  - The quality of internal audit plays a significant role in enhancing organizational performance of public sector bureaus. So, the objective of this study was to examine the effect of internal audit quality on organizational performance of public sector selected bureaus in southern Ethiopia. To this end, the researcher employed quantitative research approach with explanatory research design where the effect caused by the independent variable on the dependent variable is observed through regression analysis. The primary data was collected using structured questionnaire from 112 respondents out of total 148 respondent’s selected using simple random sampling technique from bureaus of southern Ethiopia. Then, both descriptive and inferential statistics analysis (multiple linear regression) have been done through SPSS version 21.0 and E-views version 9 in order to get the reliable research findings. Consequently, the result of regression analysis showed that, four variables such as independency of internal audit (positive), competency of internal audit staff (positive), management support (positive), and formal mandate of internal audit (positive) and statistically significant out of eight variables incorporated in the model. Whereas, other explanatory variables like objectivity, internal audit standard, competent leadership and unrestricted access to audit evidence were not statistically significant respectively. Based on the findings of the study, the researcher forwarded possible recommendations for bureaus to work on independency of internal audit, competency of internal audit staff, management support, and formal mandate of internal audit due to the fact that they are statistically significant and has positive influence in improving internal audit quality on one hand and organizational performance of bureaus on the other hand.
VL  - 4
IS  - 6
ER  -

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