Wollega University

Collage of Business and Economics

Postgraduate program in Accounting and Finance
MSc in Accounting and Finance
Weekend program
Individual Assignment II on Advanced Auditing and Control

Title:- Identify the purpose, practices and challenges of Internal Audit in case
study Nekemte town water supply and sewerage service

BY:- ABEBE KUMELA

ID NO : WU12084 85

Submitted to Instructor: Dr. Adamu Terfa(PhD).

JUNE , 2020

NEKEMTE, ETHIOPIA

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 TABLE CONTENT
CONTENT PAGE
1. Introduction………………………………………………………………………………1
2. Back ground of studies……………………………………………………………..…….1
3. Statement of problems…………………………………………………………….………2
4. Objective of the Study . …………………………………………………………….…….3
5. Research Questions …………………………………………………………..…………..3
6. Chapter two…………………………………………………………………………...…..4
7. Literature review……………………………………….…………………..……….……..4
8. Definition of the Related Terms …………………………………………………….……4
9. What the purpose of internal audits?...................................................................................5
10. Evaluate Internal Controls…………………………………………………………..….…5
11. Monitor Governance…………………………………………………………..……….….5
12. Risk Management………………………………………………………………...….……5
13. Report and Advise…………………………………………..…………………………….6
14. The Key Features for the Effective Operation of an Internal Audit Function ……………6
15. Principles of Internal Auditing ……………………………………………………..…….6
16. Objective of Internal Audit. ………………………………………………………………7
17. The Development of Internal Audit in Ethiopia………………………………………..…7
18. Challenges of Internal Audit Practices ………………………………………………...…9
19. Some Internal audit challenges may includes ……………………………………….…..9
20. Fraud………………………………………………………………………………….…..9
21. Inventory…………………………………………………………………………………10
22. Documentation………………………………………………………………….………..10
23. Audit report………………………………………………………………………………10
24. Importance of Internal Auditing …………………………………………………….…..10
25. Professional Ethics …………………………………………………………………...….12
26. Scope of Internal Audit ………………………………………………………………….12
27. Findings …………………………………………………………………..……………..12
28. Summer of studies …………………………………………………….…………………13
29. Reference……………………………………………………………...…………………14

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 ACRONYMS
 APB ======Auditing Practice Board
 AG======= Auditing Guidelines
 BOD====== Board of Directors
 BLUE =====Best Linear Unbiased Estimators
 BOFED ====Bureau of Finance and Economic Development
 COSO====== Committee of Sponsoring Organization
 IA =========Internal Auditors
 IAA ========Internal Audit Activities
 IAF =========Internal Audit Functions
 IIA ==========Institute of Internal Auditors
 MoFED =======Ministry of Finance and Economic Development

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 CHAPTER ONE
1. Introduction
1.1. Back ground of studies
In early days internal audit is a system of checking the arithmetical accuracy of accounting data
and later the concept has automatically changed to a system of appraisal of the effectiveness of
accounting, resource utilization, compliance with management policies, procedures and controls
as an aid towards management goals and objectives achievement(Yule, 2010);(Jerome,2009).
This means internal audit provide constant review and appraisal of the systems and procedures
introduced by the management, with the intention to enable the management to control and
utilize their resources properly and effectively. Because internal audits acts as an eyes and ears of
management in implementing plans and decisions properly (Hermanson& Rittenberg, 2003).
Internal auditors were also seen just as an assistant of accountant’s and an external auditor but
recently internal audit is certainly is considered an independent profession, which is playing a
significant role in the management of organizations (Rupsye, 2005).Today, several forces have
led to a quiet revolution in internal audit. Democracy requires government to be accountable in
its use of public money and in providing effective, efficient, and economical service delivery.
Ever larger and more complex systems require greater competencies, thus internal audit has had
to become ever more professional (Gansberghe, 2003).
Internal audit function can be identified as involving three main elements, namely the evaluation
and improve of risk management, control and governance processes in the public sector.
Therefore, internal auditors shall provide an effective examination or review of financial
transactions in order to ensure that; all collection is acknowledged with receipt, expenditure of
all funds and other resources of the organization are in conformity with the policies and
procedures of the organization (Asare, 2009; MOFED, 2004). 2
A strongly constructed internal audit function can play a vital role in the governance and
accountability process of public sector institutions through their assessments on the effectiveness
of key organizational controls, governance and risk management processes (Asare, 2009).
(Njeru, 2013) “
This study has showed internal audit and its challenges on the function is empirically as well as
qualitatively investigated. in Nekemte town water supply and sewerage service. For these reason,
the intent of this study is to examine and analyze each functions of internal audit practice and

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challenges. In addition, this study empirically analyzes internal audit functions that have positive
or negative relationship with the function in the case of Nekemte town water supply and
sewerage service.
1.2. Statement of problems
In developing nations internal audit function in public enterprises has been observed and it
shows a significant relationship between IA challenges (Jill, 2004; Schwartz, Dunfee & Kline
2005). Additionally, internal audits provide a number of important services. These include
detecting and preventing fraud, testing internal control, and monitoring compliance with
company policy and government regulation, and these services. Audits are intended to spearhead
growth and efficiency of the Public enterprises.
Despite this enormous role, internal audit has facing many challenges. Some of the challenges
identified by Ethiopian government auditing standards includes lack of expertise leading to
trivial auditing findings, lack of opportunity for professional development, repetitive audit
routines which staffed members can predict, being assigned to tasked such as accounting and
pre-control of expenditures with the internal auditor subsequently have to audit (conflict of
interest), lack of independence, wrong perception of the audit function and auditors by the staff
of the public body, financial impropriety, lack of auditing control, incomplete recording of
business transactions, over blow expenses to reckless spending, non compliance and adherence
to accounting standard and guide lines and mismanagement of scarce funds (EGAS,2006).
This study comprised common purpose, practice and challenges of IA these are independence,
formal mandate, unrestricted access, sufficient funding, ethical standards, competent staff,
management support and compliance with professional audit standards in the organization are
some of the expected challenges that affect IAs.
This study is to fill this gap through empirical examination of the degree of association between
the roles, purpose, practice and challenges of internal audit practice and challenges Nekemte
town water supply and sewerage service

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 1.3. Objective of the Study
The general objective of this study is to examine internal audit practice and its challenges in
Nekemte town water supply and sewerage service, Ethiopia. In line with the general objective,
the study has the following specific objectives to achieved at the end of the study
 To know the role of IA in Nekemte town water supply and sewerage service public
enterprises.
 To examine and analyze IA challenges the economic development, for related to existence
of independence, formal mandate, unrestricted access, sufficient funding, ethical standard,
competent staff, management support and Compliance with Professional audit standards.
 To examine and analyze IA, for Control related to existence of independence, formal
mandate, unrestricted access, sufficient funding, ethical standard, competent staff,
management support and Compliance with Professional audit standards.
1.4. Research Questions
The study has attempted to answer the following basic questions:
1. What is the role of internal audit in government owned enterprise?
2. What the practice and challenges of internal audits in public sector?
3. How IA for control is related to existence of independence, formal mandate, unrestricted
access, sufficient funding, ethical standard, competent staff, management support and
Compliance with Professional audit standards?

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 2. Chapter two
2.1. Literature review
2.2. Definition of the Related Terms
Internal audit is one of the cornerstones of effective governance that aims to improve the
effectiveness of the organization Internal audit was first established in private sector, it is widely
utilized especially in the financial sector. Later it was introduced in public sector. A properly
functioning internal audit system can play an important role in improving the effectiveness of
public sector governance, the quality of services and accountability
Chartered Institutes of Public Finance and Accountancy UK 2003 define Internal audit as an
assurance function that primarily provides an independent and objective opinion to the
organization on the degree to which the internal control environment supports and promotes the
achievement of the organizations objectives.
It objectively examines, evaluates and reports on the adequacy of internal control as a
contribution to the proper, economic, efficient and effective use of resources, internal audit a
component of government financial management and a tool for improving the performance of
the government sector. The internal audit activities and defines internal auditing as it is an
independent, objective assurance and consulting activity designed to add value and improve an
organization's operations. It helps an organization accomplish its objectives by bringing a
systematic, disciplined approach to evaluate and improve the effectiveness of risk management,
control, and governance processes.
According to Jurchescu(2010) defined internal audit” as an independent and objective functional
activity which provides security and management advice with the aim of ensuring effective
management of public income and expenditure, ensuring proper activities within public
organization, helps the public organization to achieve their objective through systematic and
methodical approaches, evaluate and improves the efficiency and effectiveness of internal
control system, risk management and management processes”.
On other hand (kida,2011) defined internal audit as “an aspect of the internal control system
established by management of an organization in order to ensure proper compliance with the
stipulated policies and procedure in order to achieve management objectives”.

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It is generally accepted that the internal audit practices undergone in a given firm contribute a lot
for the effectiveness of its strategy. Audit services are intangible in their nature; therefore, it is
difficult to evaluate them and there is the need to clearly define them. Internal audit activities
should follow the Institute’s of Internal Auditors
2.3. What the purpose of internal audits?
An internal audit helps a company ensure it has the proper controls, governance and risk
management processes in place. By nature, it’s an independent activity by a person or team that
can present objective findings and make recommendations for corrective measures. A robust
internal audit function can find and correct deficiencies quickly and limit costs to your company.
While external audits mostly focus on financial risk, internal auditors have a wider range of
responsibilities and different reporting requirements.

2.4. Evaluate Internal Controls

Controls are policies that companies enact to manage risk and increase the likelihood that
everyone works toward the same goals and objectives. Internal auditors evaluate controls in areas
like operational efficiency, data and information security, and financial compliance. These
controls can be preventive, meaning designed to prevent errors from being introduced, or
detective, seeking to find errors or irregularities after the fact. Auditors take an objective look at
how these controls are serving the organizational goals.
2.5. Monitor Governance
The internal audit’s role in corporate governance is to evaluate whether the company’s processes,
plans and standards are best suited to achieve its objectives and serve its stakeholders in a legal
and ethical manner. It generally takes on an advisory role, informing the leadership group of
control issues. Particularly in companies or industries that have had governance issues in the
past, an internal audit might take on a more formal oversight role. For example, if a business has
gotten into legal trouble for financial improprieties, this violation of corporate ethical standards
likely would require a formal response from internal audit.
2.6. Risk Management
A business faces risks every day, and internal auditors focus on issues that could prevent the
company from meeting its objectives. Internal audit examines a company’s tolerance for risk, its
plans for detecting and mitigating risk and communicating and monitoring risk appropriately.

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One core function is to offer assurance that risks have been adequately defined and correctly
evaluated. An internal auditor might determine, for example, that emerging risks aren't being
properly considered, such as the potential disruptive influence of a new technology. The auditor
would alert the owner or leadership group of this deficiency.
2.7. Report and Advice
Generally, an internal audit reports findings to the chief financial officer or the chief risk officer
if your company has one. These reports may make recommendations for correcting problems,
but the ultimate action is up to the business owner or management. The purpose of internal audit
is to identify areas of concern, present them to management in a balanced way and give
ownership the information it needs to make an informed decision on how to correct deficiencies
going forward.
2.8. The Key Features for the Effective Operation of an Internal Audit
Function
Added value delivered by internal audit become more and more relevant, which makes quite
necessary to identify the determinant, factors in creating this added value. Internal audit must
become a value creator through respecting the under listed general rules in order to contribute a
lot for the success of organization.
 Internal auditor must be aware over his responsibility regarding the creating of value
added for the organizations;
 It is internal auditor’s responsibility to show the management and the audit committee
how internal audit works; and they must have the chance to train the management by
organizing sessions regarding the self evaluations over the controls within the
organizations.
2.9. Principles of Internal Auditing
Auditing is a practical course. It is something that people do. Attempts have been made at
various ties to develop theories of auditing with, however, little range of underlying principles.
The auditing practice board (APB) in the audit agenda identifies these principles of auditing:
integrity, independence, accountability, competence, judgment and communication (Howard,
2003).

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 2.10. Objective of Internal Audit
The objective of any organization whether public or private enterprise is to provide an adequate
means of safeguarding its assets for effective development of the economy. These objectives
includes
 To ensure that the any weakness observed which the management could not correct
before publication of audit report is adequately and clearly highlighted.
 To give credibility statement of accounts prepared by those who manage operations for
others to enable the various users to rely on them for decision in respect of the result or
state of the enterprise reported upon.
 Conducting special investigation another task as may be assigned by management.
 To act as training officer in internal control matters
 To make a share of the external auditors responsibility in the annual accounts.
 To ensure that reporting entity complies with minimum accepted audit standard.
 To ensure that managers of resources conform to guidelines setting up the organization.
2.11. The Development of Internal Audit in Ethiopia
An Internal Auditing function has existed for quite a long time in Ethiopia; however, it got legal
recognition in late 1980s. The internal Auditing function started in the budgetary public sector as
part of internal control. However the latter part of the 1940s witnessed the establishment of
Internal Audit functions in the Ministry of National Defense, Ministry of Education, and
Ministry of Finance.
It was also at this time that the Internal Auditing units began to sprout in non-budgetary public
sector (Public enterprise) like Ethiopian Highway Authority, Ethiopian Airlines, Ethiopian
Telecommunication, and financial sector that formed the modern layer of the National Economy
(lemma, 2000).
The development of modern auditing in Ethiopia is marked after the issuance of Ministry of
Finance directives in 1942, which focused on public sector fund utilization (Kinfu, 1990).
Today‟s internal audit in Ethiopia is mainly performed based of the internal audit standards
developed by Ministry of Finance and Economic Development (MoFED, 2004). These standards

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are similar with the standards developed by Institute of Internal Auditors (Mihret&Yismaw,
2007).
Internal Auditing in Ethiopia obtained legal recognition for the first time in 1987 through
Proclamation No. 13/1987. This proclamation empowered Office of Auditor General (OAG) to
direct the Internal Auditors of Government Offices and Public Enterprises in three aspects that
are whether accounting records are properly maintained and reliable, whether the assets of the
ministries and enterprises are adequately safeguarded and properly maintained; and whether
policies and procedures laid down by top officials/management are complied with that implies
less attention was given to operational audit as a service to management(lemma, 2000).
In 1994 the civil service reform program organized a task team that was formed by Prime
Minister to assess and review the performance of Civil Service and come with the following
findings: absence of Internal Audit functions in some of the Ministries and Public enterprises,
internal auditors devoted most of their times and efforts on pre-audit, internal auditors neither
have the skills needed nor working manuals (lemma, 2000).
On July 1, 1997 the Financial Administration Regulations No. 17/1997 was issued in which the
responsibility of internal audit function was transferred from the Office of the Auditor General to
the Ministry of Regulation set out the responsibilities of the Minister of Finance to develop and
maintain appropriate standards of work and conduct for application throughout all the public
bodies internal audit function and after this financial regulations almost all public bodies
established Internal Audit Services; almost all public bodies discontinued pre-audit or pre-
checking(W. Giorgis, 2000). 18
In 1998 the Ministry of Finance issued an Operational Audit Manual to strength the Audit
function in the Public bodies. According to this manual internal audit services are made to report
to the top persons of the organizations.
In May 2007 policy directive was issued to further strengthen the Internal Audit service function
in the public bodies, however, the legal basis laid down by both in the Regulations of Council of
Ministers and the Ministry of Finance Directive is applicable only to internal auditing under
Public bodies and does not apply to public enterprises and the private sector, but recently Public
Enterprises Supervising Authority has issued policy directive for establishment of audit
committees in all public enterprises and an audit manual to maintain uniformity of audit work in
all public enterprises ( W. Giorgis, 2000).

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Generally, the history of internal auditing in Ethiopia dated back to the 1940s just about the time
the profession was also evolving in Europe and in the United States. Although, the prologue of
internal auditing in our country counts half a century and all the above endeavors has made to the
development of internal audit in Ethiopia there are challenges that hinders or slows the speedy
growth of internal audit (lemma,2000).
According to MoFED(2004) internal auditors are responsible for; an independent, objective
assurance and consulting activity designed to add value and improve the public body‟s
operations. It helps the public body accomplish objectives by bringing a systematic, disciplined
approach to evaluate and improve the effectiveness of risk management, control and governance
process
2.12. Challenges of Internal Audit Practices
According , Mihret ,Yismaw & belay(2007) defines the internal audit recommendations are not
afforded enough management attention and support which adversely affect the effectiveness of
internal audit. Moreover, lack of mechanisms in place to follow up the implementation of
internal audit recommendations; absence of strategic plan and consistent documentation styles
for audit work, lack of resources, poor leadership for internal audit function (IAF), absence of
appropriate framework to measure IA performance, and lack of competent personnel are also
some challenges of internal auditors.
The final challenge cited by a number of Directors was for Internal Audit to take a broader role
in the Corporate Governance agenda (Griffiths, 2005).
2.13. Some Internal audit challenges may includes
2.13.1. Fraud
The auditor as well as the management is responsible if a blatant fraud is ignored unless proven
otherwise. It may arise due to management override of internal controls. The appropriateness of
journal entries will ensure that there are less chances of collusion. Segregation of duties should
be in place. Any inappropriate or unusual activity should be flagged. Any provision or
accounting estimates should be thoroughly checked for fraudulent intentions and biases. Hence, a
retrospective review of management judgments and assumptions related to significant accounting
estimates is important.

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 2.13.2. Inventory
audit firms are known to have failed to address the relevant assertions where stock take
attendance is concerned. Hence, the auditor should check the existence and condition of the
inventory by performing test of controls. Last but not the least; one should obtain necessary and
sufficient audit evidence to confirm the reliability of management’s stock taking procedures.
2.13.3. Documentation
Accounting standards on audit documentation specify that the auditor must make a judgment
based on the objective contained in that particular standard. It should be sufficient and
appropriate record of the basis for the auditor’s report. Hence, it should act as evidence that the
audit planning and performance is in accordance with the necessary financial standards.
2.13.4. Audit report
Various dedicated paragraphs in the audit report hold significance for the investors to judge a
company. Eg. The emphasis of matter paragraph specifies certain matters of significance which
the auditor might want to highlight. Thus, it indicates that there is no modification in auditor’s
opinion in respect of the matters therein. But, it is important to know that particular fact.
The Internal audit it needs a professional staff that collectively has the necessary qualifications
and competence to conduct the full range of audits required by its mandate. Auditors must
comply with minimum continuing education requirements established by their relevant
professional organizations and standards (IIA, 2006).
2.14. Importance of Internal Auditing
The main purpose of the audit is to assure outsiders that the financial statements are free from
material misstatements; the value of an audit depends on the outsiders‟ ex-ante perception of:
 The probability that the auditor will discover the breaches or errors in the reporting
system and
 On the probability that the auditor will report the discovered breaches or errors
(DeAngelo, 1981).
The study done by (Holt, 2012) mentions that some chief internal auditors are now anxious to
return to the traditional oversight role and assurance activities, claiming that failure to address
strategic, compliance and operational risks undermines effectiveness of internal auditing,
diminishes their value to stakeholders and exposes organization to higher operational and

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financial risks in the future. Holt’s statement somehow implies that internal auditors cannot do
both and that adding consulting activities leave no, or much less, time for assurance services.
Allocating more resources for internal audit and expanding internal audit department within the
organization can probably solve this problem, according to (Anderson et al, 2012) it is important
to note that consulting services were added but did not replace assurance services.
The internal audit function is in charge of exercising oversight over the effectiveness of the
chosen corporate governance and risk assessment models (Regoliosi and d’Eri, 2012).the
research result of (Christopher, 2012) even states that internal audit is the cornerstone on which
effective corporate governance is built. Internal auditing should evaluate and also contribute to
the improvement of control, risk management and governance (IIA, 2009). With the rise of
internal control development, internal auditing becomes more and more significant (Sarens & De
Beelde, 2006). 36
According to (Norman et al, 2010) in corporate governance, the internal audit function is
considered to be one of the four cornerstones, together with: senior management, the board of
directors and external auditors. Traditionally the role of internal auditors was assurance related –
to provide assurance to the board that management is working in the best interest of the
organization (Limmroth, 2012).
Even if the internal audit function is an integral part of the control framework of an organization,
it is obviously that this function also must have its own control, to track whether its performance
is consistent with its role and objectives. International Standards for the Professional Practice of
Internal Audit (Octombrie, 2008) states that ―The chief audit executive must develop and
maintain a quality assurance and improvement program that covers all aspects of the internal
audit activity” (1300-Quality Assurance and Improvement Program).
According to the interpretation offered by the new version of internal audit standards issued by
The Institute of Internal Auditors in 2008 and applicable with 2009 ―this program also assesses
the efficiency and effectiveness of the internal audit activity and identifies opportunities for
improvement”.
Empirical study proved that the existence of efficient audit leads to higher quality of financial
statements and losses, caused by fraud, were lower when companies had an internal audit
function. Moreover, (Ropys & Boguslauskas, 2007) state that a knowledge economy has

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transferred specialized contemporary organizations into knowledge-intense and information
dependent systems, which require specific internal controls.
2.15. Professional Ethics
The adoption of IPPF was intended to make it mandatory for internal auditors in Tanzania to
conduct their audits in line with global standards and best practice. It will also make it mandatory
to internal auditors to adhere to the global code of ethics for internal auditors. Code of ethics for
internal auditors comprises four principles:
integrity, objectivity in doing their work, competency, and maintaining confidentiality (not using
for personal gain the information they obtain during audit).Many countries have not yet adopted
IPPF (The Daily News, 2011). Internal auditors must act with integrity. 37
Integrity includes, as a minimum, communicating with people in a manner that they understand
and interpret as intended by the internal auditor, and demonstrating honesty and truthfulness at
all times.
2.16. Scope of Internal Audit
Internal audit’s work is defined by the range of risks identified. The scope of internal audit also
is broad and includes such major areas as internal control systems, risk management procedures,
financial information systems, testing of transactions and procedures, adherence to legal and
regulatory requirements, testing of regulatory returns and special investigations.
The scope of internal audit activities should include the examination and evaluation of the
effectiveness of the internal control, risk management and governance systems and processes of
the entire bank, including the organization’s outsourced activities and its subsidiaries and
branches. The scope of internal audit should encompass the examination and evaluation of the
adequacy and effectiveness of the organization's system of internal control and the quality of the
performance in carrying out assigned responsibilities (COSO, 2011, p. 138)
3. Findings
According to the investigation there is many challenges on the internal audit implantation and
audit standards in Nekemte town water supply and sewerage service, specially many employees
have some knowledge gap, ethical, lack of managing resource and same information misstated
when reporting this shows, documents is not recorded according to the standards. Generally to
avoid this challenges management it must work on this areas by developing the employees
capacity and professionals.

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 4. Summer of studies
This study was aimed at Identify the purpose, practices and challenges of Internal Audit Challenge
in Ethiopian Public Enterprises the Case of Nekemte town water supply and sewerage service .
Specifically, the study examined the information Identify the purpose, practices and challenges of
Internal Audit Challenge.
Moreover the findings retrieved from the open questions and interview that include lack of attention
for internal audit department, feeling of audited as a fault finder, dispute and misunderstanding
auditors face from auditees, inadequacy of time to operate exhaustively, supervisors` rare in person
follow up of resident auditors, insufficient auditors knowledge on contemporary banking systems,
lack of qualified staff and scarcity of facilities were the mainly revealed challenges of internal audit
department .
In generally number of recommendations forwarded from majority of respondents so as to tackle the
challenges that faces internal audit department includes: providing training and experience sharing,
improving the working environment peace and security, revising the structure of the Bank, enhancing
management commitment to internal auditing, developing modern auditing software, updating audit
procedural manuals, promoting online auditing for prompt disparity identification and encouraging
(rewarding) best performing auditors through the assumption that these recommendations will benefit
the internal audit department and the company at large if effected appropriately.

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5. Reference
1. Deloitte: Internal Audit Roles and Responsibilities
2. Akpata, J. M. (2001). Internal auditing: Principles and practice. The National Accountants
Journal. 9(3):23 – 41
3. COSO) (2011) Committee of Sponsoring Organizations of the Treadway Commission,
Internal Control-Integrated Framework, New York: Coopers and Lybrand.
4. Rup%ys, R. and Boguslauskas, V(2007), “Measuring performance of internal auditing:
Empirical evidence”, Engineering Economics, vol. 5, no. 55, pp. 9-15.
5. Institute of Internal Auditors (2006), “The Role of Auditing in Public Sector Governance,”
Available at: <http://www.theiia.org/guidance/>. Accessed 5 July 2010
6. Limmroth, S. P. (2012). “Internal audit and compliance as a combined function: lessons
learned” Journal of Health Care Compliance, vol. 15, no. 9, pp. 27-32.
7. Christopher, J. 2012. “The adoption of internal audit as a governance control mechanism in
Australian public universities – views from the CEOs”,Journal of Higher Education policy
and Management, vol. 34, no.5, pp 529-541.
8. Sarens, G. & De Beelde, I (2006). The relationship between internal audit and senior
management: A qualitative analysis of expectations and perceptions. International Journal of
Auditing.10 (3):19–41.
9. Regoliosi, C. and d’Eri,A.(2012), “Good corporate governance and the quality of internal
auditing departments in Italian listed firms”. An exploratory investigation in Italian listed
firms.
10. Commonwealth of Australia (2007)“Public Sector Internal Audit, Better Practice Guide”,
Australian National Audit Office.
11. Institute of Internal Auditors (2006), “The Role of Auditing in Public Sector Governance,”
Available at: <http://www.theiia.org/guidance/>. Accessed 5 July 2010
12. Wobschall C (2011). “ Internal Audit Quality Assessment Framework”. HM Treasury
13. Hock B, Burch C (2011). “The Internal Audit Activity’s Role In Governance, Risk and
Control”, Third Edition CIA Preparatory Program, Hock international, LLC.
http//www.reference for business.com/index.html.), Encyclopedia of Business,” 2nd ed. Inc-
Int Internal Auditing)
14. Hermanson, D. R., Rittenberg, L. E. (2003), “Internal audit and organizational governance,”
The Institute of Internal Auditors Research Foundation.

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15. Gansberghe CN (2005). Internal Audit: Finding its Place in Public Finance Management.
World Bank Institute. www.gsdrc.org/go/display/document/legacyid/1463/
16. Al-Twaijry, AAA, Brierley JA, Gwilliam (2003). The development of internal audit in Saudi
Arabia: An Institutional theory perspective. 14(5):507-531.
17. MOFED.(2004). Internal audit standards and code of ethics for internal auditors and internal
audit procedural manual. Ethiopia: ministry of finance and economic development.
18. Dessalegn G, Getachew Z (2008). Value –Added Role of Internal Audit: An Ethiopian case
study. Management auditing journal.23(6):567-595.
19. Mihret, D. G. and Yismaw, A.W. (2007), internal audit effectiveness: an Ethiopian public
sector case study. Managerial Auditing Journal, 22(5):47-84
20. Kinfu, 1990,“Accounting and auditing in Ethiopia: an historical perspective”, paper
presented to The First National Conference of Ethiopian Studies, Addis Ababa.

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