Internal audit is important as an essential internal assurance mechanism in controlling fraud inrnbudgetary Public sectors. In addition, it assists government organizations to achievernaccountability and integrity, improve the implementation of government programs and developrnconfidence among citizens and stakeholders as well as to offer any risk of mismanagement ofrnpublic fund. The scope of this study covers the role of internal audit in Federal Ministries andrnGovernment Universities to fight fraud. This study employs a cross sectional survey torninvestigate the role of internal audit and descriptive statistic was used to analyze the data fromrnthe survey. This study examined the Role of Internal Audit in Detection and Prevention of Fraudrnin Ethiopian budgetary Public sectors. The survey found out hat there is insufficient auditorsâ€™rncompetence and independence problem toward the usefulness of internal audit work to detectrnand prevent fraud. It also determined the internal audit risk assessment that contributes inrndetection and prevention of Fraud. The study concluded that Internal Audit of budgetary Publicrnsector slack sufficient competence and independence to prevent and detect fraud. Fraud riskrnassessment is not exercised which support internal audit to control fraud. As a result, the role ofrnthe internal audit in fraud prevention and detection is minor.rnKeywords: Internal Audit, public budgetary sector, Fraud Detection and prevention.