1.1Background of the study
The role of the Internal Audit traditionally has been limited to expressing Recommendations on financial statements and related issues of legality, regularity and fraud. This involves assessments of whether transactions were properly controlled, whether care was taken in the collection and custody of revenues, whether expenditures were properly incurred and generally, whether the executives’ intentions were being met.
However, this approach does not provide information on waste, inefficiency or ineffectiveness. Increased public expenditure, the need for more rational and informed decision making in ...view middle of the document...
In water and energy minister specifically investigate on irrigational projects.
1.4 Significance of the study
The major benefits and importance of this study are the following;
It will help the auditors in the organizations to know their role in the organization.
It will be enable the managers to be aware of the importance and use of performance audit in achieving intended objective.
It will be allowed the researcher to practice a larger similar study that could be performed in other organizational sector.
It will be used as an additional reference to the existing restructure and can be used as a spring boards for other research, who wishes to conduct a research in the same area.
1.5 Limitation of the study
The limitation of this study including the following;
* Amharic was the organization language and it was difficult translating it.
* The performance audit reports of many public institutions are written in Amharic.
* The time allocated for data collections is not sufficient to gather all the relevant information.
* Absence of sufficient data and document.
1.6 Research methodology
The researchers have use secondary data source, such as books, internet, audit reports and other related material to make the research completed.
Qualitative data analysis method had been used to observe the perspective in performance audit practice in public enterprise.
1.7 Organization of the study
The study has four chapters. Chapter one deals with the introduction part which containing, the background of the study, statement of the problem, objective of the study, significance of the study, scope of the study and limitation. Chapter two summarizes review of literature. Chapter three deal with data analysis and presentation. Chapter four deal with conclusion and recommendation.
2.1 Definition of Performance Audit
Performance auditing is an audit of economy, efficiency and effectiveness with which a government organization, a program, a project, an activity or a function uses its resources in carrying out its responsibilities. It embraces:
(a) Audit of the economy of administrative activities in accordance with sound administrative principles and practices, and management policies;
(b) Audit of the efficiency of utilization of human, financial and other resources, including examination of information systems, performance measures and monitoring arrangements, and procedures followed by audited entities for remedying identified deficiencies; and
(c) Audit of the effectiveness of performance in relation to the achievement of the objectives of the audited entity, and audit of the actual impact of activities compared with the intended impact.
(d) Audit of the environmental effects of government activities.
The audit of the environmental effects of government activities entails the examination of government...