Determinants of Performance Audit Effectiveness in Tigray Regional State

Abstract

Performance audit is essential for enhancing accountability, transparency, and efficient utilization of resources in the public sector. The present research examines the key determinants influencing the effectiveness of performance audits in Tigray Regional State, Ethiopia. Based on a mixed-methods research approach, the study combines the quantitative data collected from 50 performance auditors and 20 audited public sector entities with qualitative data through interviews. The study uses binary logistic regression to examine the impact of six independent variables: management support, auditor ability, and accountability, follow-up after audit, legal requirement, and information technology on audit effectiveness. The findings reveal that management support, competent auditors, information technology, and follow-up after audit significantly enhance audit effectiveness. At the same time, accountability and legal requirements do not show a statistically significant impact. In addition, there is a good practice of the auditors in selected public sectors on the performance audit and the majority of the public sectors are efficient and economical in acquiring. This research contributes to limited regional-level empirical evidence for Ethiopia on performance auditing and offers policy-relevant implications for improving public sector audit effectiveness.