Browsing by Author "Gebre, Ayinadis"

Now showing 1 - 1 of 1
  • No Thumbnail Available
    Item
    Determinants of Audit Quality in Private Audit Firms of Ethiopia
    (A.A.U, 2020-06) Gebre, Ayinadis; Tefferi, Ghebray (Dbl)
    There are numerous studies made on the determinants of audit quality, but their findings and conclusions are inconsistency or inconclusive implying the need for further research in the same area. Besides, internal control of auditee and number of staffs assigned in an audit engagement are under-researched determinants of audit quality. This study, thus, analyzed the determinant of audit quality in private audit firms of Ethiopia taking audit tenure, audit fee, internal control of auditee, accountability of external auditors, and number of staff assignment in an audit engagements as determinants of audit quality. The study adopted a quantitative research approach to test its working hypothesis. The target population of the study were 122 licensed and registered private audit firms in Addis Ababa. Primary data were collected from the 55 sampled private audit firms of Ethiopia through questionnaire and structured interviews. Data from structured interviews were obtained from the principals/Partners of audit firms. Secondary data were also collected from the financial reports of auditees of the sampled audit firms to measure audit quality using discretionary (abnormal) accrual of management earnings as a proxy. The collected data were analyzed by using SPSS Statistics version 25, Linear multiple regression analysis, and descriptive statistics. The results of linear multiple regression analysis showed that audit tenure, internal control of auditees, and number of staffs assignment per audit engagements have positive and statically significance impacts on audit quality of private audit firms of Ethiopia. While, audit fee and accountability of external auditors have statistically insignificance impacts on audit quality of private audit firms of Ethiopia. Accordingly, recommendations to private audit firms, auditees and their shareholders and suggestions for future research are provided.