Determinants of Successful Implementation of Audit Report Recommendations: The Case Office of the Federal Auditor General in Northern Branch

Abstract

This study was carried out in order to investigate the Determinants of successful implementation of audit report recommendation in Office of federal Auditor General Audited Government Organization Northern branch in Bahir Dar. Data collection was achieved through questionnaires and the study of documentary materials. The primary data were supplied to 5 respondents focusing purposively on all audit team leaders and audit manager. The secondary data were generated from the annual summarized audit reports of 265 previously audited government organizations prepared by Office of federal Auditor General in Northern branch. The test of hypotheses and other analysis of data were done using SPSS, version 20. The tests revealed that among others, conflicts of interest, lack of follow up, employee instability and management resistance are the significant factors affecting successful implementation of audit recommendation in Northern branch. That means they are the principal factors hindering the implementation of audit report recommendation. In addition, it is found that management & employee negligence and remoteness would likely have negative in-significant effect on the implementation of audit in Northern branch. The study recommends efforts should be made to establish and strengthen follow up for previous audits, create awareness for the legal punishment related to conflict of interest and design proper information exchange system during employee turnover to improve implementation of audit recommendation. Also, regulatory authorities should exercise legal measure for management negligence and resistance for the successful implementation of audit recommendation.