Vickneswaran Anojan
The main purpose of the study is to identify significant factors affecting the effectiveness of internal audit reporting in the public sector of the Northern Province, Sri Lanka. Primary data were used in this study, those primary data were collected from heads of the departments, divisions, and internal auditors in the public sector, Northern Province of Sri Lanka through the developed questionnaire. Regression analysis confirmed that tested factors are significantly impact on the effectiveness of internal audit reporting, especially accountability & transparency, and independence of internal auditors are more significantly impact on the effectiveness of the internal audit reporting. All the tested factors are significantly correlated with the effectiveness of internal audit reporting, except materiality. This paper is based on the data from public sector in the Northern Province of Sri Lanka, therefore the findings of the study can be generalized to other public sector organizations, which are in other provinces in Sri Lanka. According to the statistical results of the study, it can be suggested that more independence for the internal auditors and accountability & transparency of the internal auditors will lead to more effectiveness of the internal audit reporting in the public sector of the Northern Province of Sri Lanka. This is the first study, which evaluates significant factors that impact on the effectiveness of internal audit reporting in the public sector of Sri Lanka.