Assessement of Internal audit Function Effectiveness in Public Economic Enterprises : Field Study

(Haouam Djemaa)

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Abstract

Internal auditing provides accepted guarantee that the conducted procedures and decisions of an enterprise is continuously monitored. This study aimed to identify the extent of internal audit function effectiveness in Algerian public economic enterprises through detecting the degree of coherence between internal audit practices and international standards of audit (ISA) established on 2008 by the Institute of Internal Auditors (IIA) in these enterprises. To achieve the objectives of the study, and test its assumptions, a questionnaire was developed, and distributed to all internal auditors working in a sample of )22( economic public enterprises. The samples were selected according to objective criteria, corresponding the objectives of the study. Total of )109( questionnaires were distributed, of which the number of the received questionnaires was only (64). Descriptive and the inferential statistical techniques were applied to describe and analyze collected data and test the study's assumptions. The study showed that the internal audit practices in Algerian public economic enterprises involved in the study matched several internal audit international standards. In addition, the factors related to the sampled elements and its internal audit activity had a statistically significant impact on the internal audit effectiveness in these enterprises. The study recommended the need for developing human competencies appropriate to the needs of internal audit functions, working towards the dissemination of internal audit culture within these enterprises, and providing an appropriate organizational environment for it in order to perform its role efficiently. Key Words: Corporate governance, Internal controls, International standards of internal auditing, Risk management.
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