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The main objective of the study is to assess internal audit practice in finance and economic development office of Adama city. The researcher used descriptive type of research design and To achieve this objective the necessary data was collected from primary as well as secondary data sources, the primary data was collected from the target employees by using questionnaires and secondary data was obtained from manuals and related written materials and documents. From the company’s five (5) departments the researcher selects two departments such as audit, inspection and payment and account in order to take sample of the research project. The raw data obtained from questionnaires was analyzed by using simple frequency tables. based on the findings of the study, the organization doesn’t provide reasonable assurance regarding of prevention, or timely detection and correction of unauthorized acquisition, use or disposition of the entity’s assets that could have a material effect on the financial statements, the company auditors doesn’t involve in the activities of drafting policies and there is a problem around classification of performance deficiencies. Based on this finding the researcher recommends that the organization should give attention regarding to these problems and try to overcome in cooperation with the employees in order to perform a quality audit inspection within the organization. Keywords: Internal audit, audit quality, competency, independence, audit planning DOI : 10.7176/RJFA/10-17-03 Publication date :September 30 th 2019

The Assessment of Internal Audit Practices in Ethiopia (The Case of Finance and Economic Development Office in Adama City)