Browsing by Author "Tensae, Nebiye"

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    The Determinants of External Audit Quality: A Case Study of Ethiopian Audit Firms
    (Addis Ababa University, 2017-06) Tensae, Nebiye; Gebremedin, Gebrehiwot (Ato)
    The aim of this study is to assess the determinant factors affecting external audit quality in Ethiopian audit firms. Namely independence, audit experience, accountability, audit fee, firm size and regulation. In light of this objective the study adopted quantitative method of research approaches to test a series research hypothesis. Specifically, the study used primary data through close ended questionnaires. From the total population of ninety eight external audit firms licensed and registered in Accounting and Auditing Board of Ethiopia (AABE), fifty two audit firms are selected based on convenience sampling and one hundred four questionnaires are distributed. Two questionnaires are distributed for each firms. The questionnaires are answered by principal/partners and or employed auditors in senior audit position. The results of multiple regression reveal that independence, experience, accountability and regulation are statistically significant factors influencing the variation in audit quality in the Ethiopian external audit firms. The audit fee is significant on 10% significant level whereas, audit firm size is not significant factor that has little or no impact on the audit quality of the Ethiopian external audit firms as it is not significant even at 10% significance level. Therefore, this is a clear signal to audit firms, professional associations and the Accounting and Auditing Board of Ethiopia (AABE) not to ignore the key determinant factors of independence, experience, accountability and regulation identified by this study.