EFFECT OF INTERNAL AUDIT FUNCTION IN GOOD PUBLIC GOVERNANCE

Internal audit function has important contribution for the improvement of public governance and<br> in return for the achieving of organizational objective. The overall objective of this study was to<br> examine the role of internal audit function in promoting public governance practice of Public<br> sector in Gedo zone. In order to achieve this objective, the researcher applied descriptive and<br> explanatory research design with mixed research approach. Cross sectional data was collected<br> from Gedio zone Public sector from primary source using close end questionnaire which were by<br> distributing among 105 respondents incorporated all manager, internal auditor and senior<br> accountant from 8 woredas, 4 administrative town and one zonal town towns that were selected<br> by census sampling technique. Unstructured interview was used as primary source in addition to<br> secondary sources which gathered from Gedio zone public sector. The researcher analyzed the<br> collected data by descriptive statistics (mean and standard deviation) and binary logistic<br> regression model using stata version 11 as a tool. Based on the analysis, the result of the study<br> show that control activity, internal environment, risk management, and monitoring activities,<br> role of internal audit function has the most and statistically significant effect in the improving of<br> public governance while consulting service have statistically insignificant and negative effect in<br> the improving of public governance. Standing from the result, the researcher recommended that<br> Gedio zone Public sector must collaborate with internal audit, compile with rules, regulation<br> and directives issued by Ethiopian government , consider internal audit as instrument for the<br> improving of public governance.