This study aimed to examine the Role of Internal Audit in Detection of Fraud in Ethiopian Budgetary Public sectors. To fight fraud, internal audit paly irreplaceable role in organization where fraud erodes countries economy. In Ethiopia, detecting fraud is the challenge due to different factors. Lack of research on internal audit role in detecting fraud is a problem. The research considered Federal Ministries and Government Universities experienced employees for answering well organized questionnaires. Secondary sources of data were also utilized. It employs a cross sectional survey to investigate the role of internal audit and descriptive statistic was used to analyze the data from the survey. The examination found out that there is insufficient auditors' competence and independence problem to detect fraud. It also identified that absence of internal audit risk assessment result in not to detect fraud. The reliable information was used for this study and thus, vastly used for practitioners, academics, Higher Government officials, and researchers to solve the practical problems, to have more understanding on audit and fraud, and open a door for further investigation.