Financial performance requires appropriate internal audit practices to improve efficiency. For thernpurpose of this study the researcher sought to determine the effect of internal audit on financialrnperformance in Bureau of Finance & Economics Development in Oromia Region state. Internalrnaudit was looked at from the perspective of internal audit standards, professional competency,rninternal controls, and support of management and independence of internal audit. The researcherrnadministered a survey questionnaire to each member of the target population since it was the mostrnappropriate tool to gather information. Quantitative analysis and regression analysis were used asrndata analysis technique. Descriptive statistics such as mean, standard deviation and frequencyrndistribution were used in the analysis of data. Data presentation was done by use of tables for easernof understanding and interpretation. From the findings, the study concludes that, independence ofrninternal audit, professional competency and internal control had a positive relationship and alsorninternal audit standards and support of management had a negative relationship with financialrnperformance of organization.The studied found that a unit increase in independence of internalrnaudit, professional competency ,internal audit standards ,support of management ,andinternalrncontrol would lead to increase a in financial performance of organization and further unit increasernin internal control would lead to increase in financial performance of organization.From thernliterature review, several researchers seem to be together that there was a relationship betweenrninternal audit and financial performance of an organization. These conclusions would confirmrnafter empirical evidence would obtain from the research and not identify prefer studied howrnsupport of management and Understanding more effective, concerns on audit softwareâ€˜s Suchrnas IBEX, automation, fraud detection, audit exporting, data mining and network securityrninternal audit unit needs much more emphasis. This providing gabs to study as explainrnabove.The study recommends that management in organization should adopt effective internalrnaudit practices such as internal auditing standards, independence of internal audit, professionalrncompetency, management support and internal controls to extend financial performance of thernBureau of Finance & Economics Development.