Research Journal of Finance and Accounting www.iiste.org ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Vol.7, No.16, 2016 208 Factors Affecting the Internal Audit Effectiveness in Tunisian Organizations Hella Dellai 1* Mohamed Ali Brahim Omri 2 1.Faculty of Economic Sciences and Management of Tunis, University of Tunis El Manar, Campus Universitaire-El Manar II-B.P. 94-Romena–1068, Tunis, Tunisia 2.College of Business Administration, Northern Borders University, P.O. Box:1321, Arar, Saudi Arabia Abstract This study examines factors influencing internal audit effectiveness in the Tunisian context. Data was collected from responses to a questionnaire addressed to chief audit executives of 148 Tunisian organizations. Multiple regression analysis examines the association between the effectiveness of the internal audit function and six principal factors. Results reveal that the effectiveness of internal auditing is influenced by: (1) the independence of internal audit, (2) the objectivity of internal auditors, (3) the management support for internal audit, (4) the use of internal audit function as a management training ground, and (5) the sector of organization. This study provides useful information to practitioners and academics who are interested to identify the determinants of internal auditing effectiveness in developing countries. Keywords: Internal auditing, Internal audit effectiveness, Tunisian organizations 1. Introduction In the recent years, internal auditing (IA) has undergone dramatic changes that have extended its area of involvement in a way that allow it to add more value to a company. Traditionally, the role of IA has focused on compliance assurance, financial control and assets safeguarding. After the corporate financial scandals of the 2000’s, many reforms (Sarbanes-Oxley Act 2002; Combined Code 2003; OECD 2004; IFAC 2006) have reinforced the responsibilities of IA in enhancing corporate governance mechanisms. Therefore, IA has become a value creator improving the effectiveness of risk management, control and governance systems (Bou-Raad 2000; Roth 2003; Hass et al. 2006; Cohen et al. 2010). The Institute of Internal Auditors (IIA) refers to the new approach of the function in its latest definition of internal auditing (IIA 2004): “Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.” Through the extended role of IA, internal auditor has become an essential monitoring mechanism in corporate governance along with the external auditor, audit committee, and executive management (Gramling et al. 2004). The aim of IA is to assist an organization in achieving its objectives (Roth 2003; Hass et al. 2006). For this purpose, IA can perform a wide variety of activities in the form of assurance or consulting services. First, it can provide assurance that the organization’s systems of control are designed properly and operate effectively. Second, it can act as a management consultant to improve risk management (Spira & Page 2003). Third, it can assist the audit committee and external auditors in monitoring the internal control system (Goodwin 2003). Fourth, it can reduce fraud, misappropriation of assets and misreport financial information (Coram et al. 2008). Briefly, the internal audit function (IAF) is the cornerstone of the corporate governance, which contributes to improving the productivity, efficiency and performance of the company in both private and public sector (Mihret et al. 2010; Gros et al. 2016). In the light of the evolution of internal audit, a new concept began to have a particular attention in the audit literature; it is the effectiveness of AI. Indeed, being effective is the challenge that IAF should successfully overcome to be the key component of good governance. In this context, it is important to explain the concept of IA effectiveness and identify critical factors that contribute to creation of “added value” of IA. Therefore, this study aims to investigate factors that may influence IA effectiveness within Tunisian organizations. This study is motivated to examine the effectiveness of IA and its determinants owing to the limited academic research in this area. Despite of the increasing emphasis on the role of IAF as a corporate governance mechanism in recent scientific literature, a very few studies have been conducted on the internal audit compared to studies of external audit. While the literature examining the IA effectiveness is moderate in developed countries, very few researchers have investigated this concept in developing countries (Al-Twaijry et al. 2003; Alzeban & Gwilliam 2014-Saudi Arabia; Mihret & Yismaw 2007-Ethiopia; Ahmad et al. 2009- Malaysia; Sakour & Laila 2015- Lybia). In fact, Tunisia as a developing country is an interesting case that signifies the importance of exploring the effectiveness of IA for the internal audit profession that is growing since 1981. This study contributes to the