Internal audit contributing factors and its efficacy on noncompliance activities in public sector organization

S. M. UVANESWARAN, College of Business and Economics, Wollo University, Ethiopia
NAOD MEKENNON YIMER, College of Business and Economics, Wollo University, Ethiopia
Abstract
The main objective of this paper is to evaluate the contributing factors of the internal audit and their effectiveness on non-compliance activities in the South Wollo Zone's public sector finance and economic development offices. Explanatory analysis approach was used to perform the study. The research focused on six public sector offices to collect primary data through a questionnaire from Wollo Finance and Economic Development administrators, management teams, accountants, purchasing officers and internal auditors and 155 samples were collected using a stratified random sampling process. The data collected by using Likert scale was analyzed by the Binary Logit regression model, with the presence of internal audit effectiveness on noncompliance activities as dependent variables and six independent variables. As a result, each of these six independent variables account for Fifty-five per cent of contributions to internal audit effectiveness. Henceforth, the outcome supports to formulate strategies to Ministry of Finance and Economic Development to understand the necessity of eradicating the corruption practices and also associate with Ethiopian Education institutes to improve the quality of certified internal auditors.

Keywords: Efficacy of Internal Audit, Contributing factors, Non-compliance activities, Internal and External auditors and Ethiopia Public Sector Offices

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Notes on contributors
Dr. Uvaneswaran. S.M is a Professor in Accounting and Finance, Wollo University, Ethiopia; he holds doctoral degree (Ph.D) in Management from Bharathiar University, India. He qualifies two M.Phil degree in the field of Commerce and Management and also dual master degree in Business Administration (MBA) and Commerce (M.Com) and undergraduate (B.Com) in Commerce field from Bharathiar University, India. Besides, he grasps Postgraduate diploma (PGDCA) in Computer Application and also have related proficiency skills in Tally, Peachtree, SPSS, AMOS, TABLEAU etc. He has 25 years of professional experience in teaching, research and administrative areas. He worked more than two decades in Engineering and Arts and Science colleges. He served as editorial member and reviewer for various international journals and also acted as Convenor for organizing National and International conferences. He also published more than half century of research papers in National and International Journals and also a book in the field of Organic Food practices and Thesis Manual for Social Science.  He received Best Teacher Award from various institutions in India and his research works are funded by Research and Community Service, Wollo University, Ethiopia.  His research areas are Behavioral Finance, Taxation, Corporate Finance, Financial engineering Model, Corporate Social and Environmental Accounts and Business revamp financing techniques.
 
Naod Mekonnen is Assistant Professor of Accounting and Finance; he holds MSc and BA degree in Accounting and Finance from Addis Ababa University, Ethiopia. He has over 12 years of teaching and research experience in universities. Besides, he has also provided different types of community services voluntarily.  He has publications in international journals. He has worked in two universities that are found in Ethiopia, namely Samara University and Wollo University. During his say in Samara University, he was office manager of Alumni and he was research symposium organizer and acted as annual research symposium proceeding books editor. Currently, he is head of the department for accounting and finance in Wollo University, Ethiopia.
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