Accounting and Auditing

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A Research Paper on: Factors Affecting Resource Mobilization and Utilization By Ngos in Ethiopia: The Case of Selected International Ngos
(A.A.U., 2023-06-07) Wondwosen Ketema; Habtamu Berhanu (Dr.)
The study mainly intends to explore factors that affect resource mobilization and utilization among selected International NGOs operating in Ethiopia. It is necessary to evaluate factors that affect resource mobilization and utilization, eighteen NGOs and donor related government authority audit firm were considered as a case study. The research used a mixed research approach by which both descriptive and explanatory. The study included 100 participants and due to the small target population, this study used the entire population. The quantitative and qualitative study was conducted to collect information from primary and secondary sources. For this research, a structured and standardized questionnaire was conducted. The data were analyzed by using the STATA software system to analyze the collected data which have been presented using tabulation. According to the conclusion of the study, strategies of resource mobilization adopted by NGOs, external factors and donor financial and associated requirements are important variables influencing the resource mobilization and utilization selected international NGOs. The study recommends that to meet effective resource mobilization and utilization, NGOs should emphasize on factors of resource mobilization and utilization such as strategies of resource mobilization, external factors, and the effect of donor financial and associated requirements
Accounting Information Systems and Business Performance: The Case of Commercial Bank of Ethiopia
(A.A.U, 2021-01) Kebede, Abraham; Berhanu, Habtamu
The purpose of the study was to identify the relationship between information system success and business performance as well the extent of moderating effect of Accounting Information System effectiveness on the above relationship of Commercial Bank of Ethiopia (CBE). The researcher used both primary and secondary data and used the explanatory research design. The researcher used a random sampling technique and an online questionnaire through the google platform to the CBE branch staff and customers and used Pearson correlation, multiple regression, and moderate regression to justify the objective of the study. The primary data are were collected through online based structured questionnaires and based on valid and complete sample responses of 108 employees and 108 customers of CBE selected based on stratified random sampling method. The finding of this study showed that IS success has a positive and significant impact on business performance and AIS effectiveness has a positive and moderate effect in affecting the relationship between IS success and business performance based on Service Profit Chain (SPC) model. Therefore, the researcher recommends companies should integrate information quality, service quality and system quality in designing IS framework design in a holistic approach and take into consideration the effectiveness of AIS as moderating factor to benefit the level of business performance expected from the IS model.
Accounting Practices of Small and Medium Sized Enterprises and its Effect on Access to Finance in Addis Ababa
(A.A.U, 2011-06) Mosisa, Tafa; Laxmikantham, P (Dr)
This study seeks to examine the accounting practice of small and medium sized enterprises and Its effect on access to finance in Addis Ababa. identifies the sectors the key to unlocking the economic potentials of the country. However, the sector is constrained by a number of factors which include among others minimum or poor accounting practice and difficulty in accessing credit. facilities. For the achievement of the objective of the study quantitative research approach particularly survey design were used and the data obtained were analyzed using descriptive statistics and ordinary least square regression. The study revealed that the majority to the studied firm has no formal accounting practice. The study also revealed that the major sources of finance available .for the establishment and expansion of SMEs in Addis Ababa are personal saving, microfinance, money form Fiends or relative, iqub and less From banks. The result of ordinary least square regression evidences that variables such as capitol, manager education level and age of the .firms are the significant determinants of firms' accounting practices whereas the problems significantly associated with access to bank credits are the demand for collateral, accounting practice or formal accounting information and age the farm
Accounting Reform Results and Challenges at Selected Federal Public Bodies of Ethiopia
(Addis Ababa University, 2018-03) Demissu, Lemma; Degefe, Duressa (PhD)
This study examines the Ethiopian government accounting reform results and challenges with the view point of examining what diagnostic problems identified initiating the reform, what measures undertaken to change the situations, what results achieved during the implementation and unclosed issues of the reform. For this study the researcher gathered primary and secondary data, analysed and interpreted the data. The primary data were collected through conducting survey on structured questioners, interviews and discussions with experts and heads of finance and audit functional units of the selected institutions. Researcher’s personal observations were also incorporated as primary source. The secondary data were collected through reviewed relevant manuals, assessments, public finance proclamations, regulations, directives and other government official documents and publications. Then the study identified that the accounting reform exhibited several success results including transforming the base from single entry and pure cash base to modified cash base accounting, the introduction of self-accounting and auditing, improvement in quality of the financial statements, the development of unified chart of accounts, comprehensive legal frameworks and integrated financial information systems. However, still having competent and professional human resource, stable, efficient and sustainable financial information technology, more advanced system of accounting records oriented with the new public finance management are challenges and unclosed issues of the reform. Therefore, the study concludes that further reforming the Ethiopian government accounting system is necessary.
Adoption of Electronic Banking System in Ethiopian Banking Industry: Barriers and Drivers
(A.A.U, 2012-04) Gemechu, Ayana; Subramanian, Ulaganathan(Dr.)
This thesis aims to examine adoption of E-banking in the Ethiopian banking industry with respect to the barriers which can influence firms from taking advantage of E-banking system and expected benefits derived by adopting the system. The study was conducted based on the data gathered from four banks in Ethiopia; three private banks (Dashen bank, Zemen bank and Wegagen bank) and one state owned bank (commercial bank of Ethiopia). A mixed research approach was used to answer the research questions that emerge through the review of existing literature and the experiences of the researcher in respect of the E banking system in Ethiopia. The study statistically analyse data obtained from the survey questionnaire. A research framework developed based on technology-organization environment framework and Technology acceptance model to guide the study. The result of the study indicated that, the major barriers Ethiopian banking industry faces in the adoption of Electronic banking are, security risk, lack of trust, lack of legal and regulatory frame work, Lack of ICT infrastructure and absence of competition between local and Foreign banks. The study also identified perceived ease of use and perceived usefulness as a driver of adopting E-banking system. The study suggests a series of measures which could be taken by the banking industry and by government to address various challenges identified in the thesis. These measures include: Establishing a clear set of legal frame work on the use of technology in banking industry, supporting banking industry by investing on ICT infrastructure and banks needs to be focused on technological innovation competition rather than traditional bases of retail bank competition.
The Adoption of International Financial Reporting Standards (IFRS) in Ethiopia: Benefits and Key Challenges
(A.A.U, 2012-05) Fantahun, Fikru; Laxmikantham, P (Dr)
This study aims to examine the adoption of international Financial reportitt's standards ([FRS) in Ethiopia. the study focuses on examining the benefits and challenges of [FRS including the factors that could influence its adoption. to answer research questions and test the hypotheses the study adopted the mixed research approach. the questionnaire data were analyzed using descriptive statistics, correlations, and multiple linear regression analysis and data from interview and document reviews were interpreted qualitatively. The results show that [FRS adoption in Ethiopia will result in a number of important benefits to a wide range of stakeholders. high cost of adopting, the complex nature, lack of proper instructions from regula ton) bodies for implementing [FRS, as well as [FRS's emphasis on fair value accounting, are listed among the most important challenges of [FRS adoption. the study also find that with the exception of government policy the other four variables which are professional bodies, capital market, educational level and company size significantly influence the adoption of [FRS in Ethiopia. Finally, the thesis displayed practical implications for the government of Ethiopia and regulaton) bodies in setting a firm deadline for the [FRS adoption and in following the proper application of all the adopted standards. The findings also suggest that a rigorous [FRS capacili) building program should be embarked by the government, all regulaton) bodies, firms and tmining institutions in order to provide the needed manpower for [FRS implementation.
Advanced Management Accounting Techniques in Manufacturing Firms in Ethiopia
(A.A.U, 2011-06) Bogale, Ermias; Duressa, Degefe
In order to survwe and remam competitive the manufacturing firms are under increasing pressure to become more efficient in managing and controlling their costs. This paper examines the level of advanced management accounting practices in manufacturing firms of Ethiopia and it examines the relationship of some theoretical factors that influencing the usage AMATs. The usage or its level of advanced management accounting techniques increased in the last five years and this implies that the manufacturing has awareness about this techniques. To examine the relationship of theoretical factors that might affect the usage of AMATs the paper used Pearson correlation and cross tabulation. As the Pearson correlation coefficient indicates usage of AMATs and usage of advanced manufacturing technology has strong relationship. In the regards of the Traditional Management Accounting Techniques, it uses widely and increased in the last five years. To keep pace with the world changing management accounting environment, Ethiopian manufacturing firms should use the newly developed techniques.
Agency Banking in Ethiopia: The Case of Wegagen Bank Sc and Lion Bank Sc
(A.A.U, 2020-12) Negassi, Mesfin; Alem, Hagos(Phd)
Now a day information Technology is highly important in every human activities which reduce many complications in our day to day activities. Agency banking is one of the banking service technology which enable customers to get financial service even without going to branches of the bank. The main objective of the study was to assess the development status of Agency Banking services in Ethiopia by taking the experiences of two banks (Wegagen Bank S.C and Lion Bank S.C) and agents participating in the development of the Hellocash MMS provision as a case study. The researcher use primary and secondary source of data in the study. The questionnaires were developed for sample employees and agents of Wegagen Bank SC and Lion Bank SC. In addition, Interview question was developed for Key informants with knowledge and required experience on the Hellocash pilot project to collect information regarding the viability of Hellocash MMS business model for agents and banks. Secondary data such as reports of banks, 12 months electronic records of customers (subscribers of Hellocash MMS) transactions data and the National Bank of Ethiopia mobile and agent banking directives were investigated in the study. The collected data was analyzed using descriptive and inferential statistics. The result of the study shows that the development of mobile and agent banking depends on the existing regulatory situation on Agency Banking services in Ethiopia as well as on specific factors such as amount of agent/Bank revenue from the Hellocash MMS, Cost reduction, security and reliability, Customer service and convenience
An assessment of bank fraud trends and its determinants: The case of CBE
(A.A.U, 2024-06-03) Mintamir Shibabaw; Temesgen Worku (PhD)
Bank fraud in Ethiopia has increased in alarming rate. According to the Ethiopian Federal Police Crime Investigation Bureau's annual report for 2018 and 2019, Ethiopian banks lost 326,343,280 Birr in just those two years. The study assessed the trends of bank fraud and its determinants in the case of CBE. The study used descriptive research design methods. This is because quantitative number of frauds cases counted with sampled call center staff responses to understand types, causes, effects and possible higher level action points. Accordingly, we can understand the overall trends and patterns of frauds specifically related to negative consequences of digitization of banking services. The study interest of population was the CBE Call center customers fraud related complaints that registered on CRM and 89 questionnaires were also distributed to managers and staff of the call center. The identification of the CBE Call center managers and employees done through stratified random sampling techniques. Through the completion of tally sheets, the delivery of structured surveys, and the reading of several CBE publications and articles, both primary and secondary data gathered. Times series analysis non-parametric Mann-Kendall‟s trend test were applied to assess the trend and in order to forecast fraud from June to November ,2023, ARIMA technique were used. The total number of fraud cases recorded in CRM from April 1,2022 to May 31,2023 was 495. The researcher selected this period due to the fact that an appropriate data had been recorded at the CBE Call center during this time. There was a modest increase of frauds in the stated period. As it can be summarized from the study, 75% of the respondents believed that customers are losing their confidence on banks because of such increasing cases of frauds. Therefore, various proposed actions shall be taken to reverse such trends.
An Assessment of Credit Risk Management Practice: The Case of Abay Bank S.C
(A.A.U, 2024-05-03) Workneh Lashetew; Abebaw K.(PhD)
Credit risk is an essential factor that needs to be managed. Credit risk is the possibility that a borrower or counter party will fail to meet its obligations in accordance with agreed terms. Credit risk is one of the most vital risks for any commercial bank. Credit risk arises from nonperformance by a borrower. Among the risks that face bank’s credit risk is one of great concerns to bank authorities and banking regulators. This is because credit risk is that can easily and most likely prompts bank failure. Managing credit risk is not a simple task comprehensive consideration and practices are needed for identifying, granting, controlling and evaluating and monitoring credit risk. This research asses the practice of credit risk management in Abay Bank S.C. Therefore, the main objective of undertaking this study is to assess the credit risk management practice of Abay Bank S.C. For the study primary data is used. Primary data is collected using questionnaire and interviews. Regarding to the nature of the study, the research design is descriptive and quantitative study approach is adopted to assess credit risk management practice of bank. The research found that, credit risk monitoring procedure is not reviewed and updated regularly, the bank’s credit professionals do not conduct a formal meeting to discuss the customer’s history and future plans and there is lack of adequate training to credit management staffs and there is lack of adequate staff in credit management department of the bank. Finally based on the findings of the study, the following recommendations are given. Credit monitoring procedure should be reviewed and updated on regular basis; the bank should be adequately staffed the credit management department and the bank should arrange short term and long-term training to update and enhance the employees understanding about credit risk management.
An Assessment of Project Monitoring and Evaluation Practices: The Case of International NGOs
(A.A.U, 2024-06-04) Getinet Teferi; Temesgen Worku (PhD)
Monitoring & Evaluation (M&E) is a systematic process used to track and assess the progress, performance, and outcomes of projects, programs, or initiatives. This method involves the continuous collection, analysis, and interpretation of data to ensure that objectives are being met efficiently and to provide insights for informed decision-making. Monitoring & Evaluation (M&E) play a pivotal role in the success of development projects, allowing project managers to track progress, identify challenges, and make informed decisions. This study focuses on assessing the project monitoring and evaluation practice in five international NGOs (Action Against Hunger (ACF), Population Service International (PSI), Zionist Organization of America (ZOA), Jhpiego (Johns Hopkins Program for International Education in Gynecology and Obstetrics), and Fintrac (Feed the Future Value Chain Activity) operating in Ethiopia. By assessing the monitoring and evaluating practices and project performance, the research aims to contribute to a better understanding of achieving optimal project results. The study employed a census sampling method to collect primary data through questionnaires and interviews. Participants included program managers, program staff, finance managers, finance staff, M&E managers, and directors who worked more than a year in the organization. Out of the 70 distributed questionnaires, 67 were properly filled in and returned. The collected data was analyzed using SPSS, and the results were presented using tables. Findings revealed that the international NGOs involved relevant stakeholders, including beneficiaries, government, donors, and the community, in their M&E activities. However, the gap in practicing & implementing effective M&E systems were identified, such as limited resources in terms of funding, staff, and technical expertise. In conclusion, while the international NGOs have well-established M&E systems, improvements are needed in certain areas. Recommendations include clarifying the extent and objective of the of the M&E (Monitoring and Evaluation) system, providing adequate time and training for project staff, enhancing technical capacity in M&E tools, allocating sufficient budget to the M&E department, involving all stakeholders in M&E practices, ensuring the engagement of top management, and utilizing M&E evaluation reports to monitor project progress.
Analysis of Factor Influencing Access to Finance and its Availability for SMEs in Addis Ababa
(Addis Ababa University, 2018-05) Ayalneh, Menberu; Degefe, Duressa (PhD)
This thesis aims at investigating the factors influencing of access to finance and its availability for Small and Medium Scale Enterprises (SMEs) in the Addis Ababa by using both survey and econometric methods. Specifically, the thesis assesses the impact of firm characteristics, collateral requirement, cost of borrowing and awareness of funding opportunity on the accesses to finance and its availability. The study employs mixed methods research approach. The quantitative aspect of the study is based on survey of a randomly selected 204 SMEs owner/manager, shareholders and employee/manager and 50 participants from six banks and seven MFIs employee in Addis Ababa. While the qualitative component employs review of relevant documents related to accesses to finance in Ethiopia. The outcome of a study reveal that firm characteristics, collateral requirement, cost of borrowing and awareness of funding opportunity have a significant relationship with the accesses to finance and its availability. Furthermore, the result from descriptive nature of structured questioner confirmed that all factors in this research have impact on the accesses to finance and its availability. It also revealed that SMEs use their own savings and profit as well as “ekub” as a major source of finance beside banks and MFIs contribution. Having in adequate collateral, lengthy process of loan and high interest rate are discovered as major obstacles to have loan from Banks and MFIs. These findings expected to help both parties SMEs as well as financial source providers in the development of appropriate strategies in filling the gap towards certain mutual benefit on collateral requirement and interest rate that contributes in growth of the nation as well to the economy.
Analysis of Financial Performance of Selected Commercial Banks in Ethiopia
(A.A.U, 2022-02) Beyene, Ashenafi; Fufa, Takele
The purpose of this study was to analyze the financial performance of commercial banks in Ethiopia using the CAMEL method. The research was carried out on ten commercial banks, using data from their annual reports from 2011 to 2020. The overall goal of this study was to investigate the interconnection between CAMEL ratios and profitability, as well as the effects of CAMEL variables, bank size, and operating cost efficiency on profitability measurements of return on asset, as well as to rank banks included in this study based on their financial performances. The study used a quantitative technique from one of the three business and social research approaches. In addition to CAMEL factors, this study employed ROA as a dependent variable and bank size and operating cost efficiency as independent variables. For econometric analysis and descriptive statics for CAMEL ratios, bank size and operating cost efficiency, the researcher employed data from annual report of the banks. To test the hypothesis and evaluate the relative importance of each independent variable included in the CAMEL framework to explain dependent variables, fixed effect regression analysis was performed. The econometric analysis revealed that asset quality, earning quality, liquidity, bank size, and operating cost efficiency were significant variables in explaining ROA, although capital adequacy and management efficiency were not. According to the study, banks shall concentrate on raising their total asset by mobilizing deposits and converting them to loans, as total asset or bank size is a determinant factor in raising return on asset.
Analyzing Accounting and Financial Reporting Practice of Non-governmental, Not-for-profit Organizations in Addis Ababa.
(A.A.U, 2011-06) Mala, Mesfin; S., Laxmikantham (PhD)
The number of NGNFPOs in Ethiopia and their activities has multiplied in the past three to four decade but little information exists on how well these organizations report on their Performance to their constituents and the general public . The purpose of this study is to Examine and appraise exist in g accounting and fin uncial reporting practices of NGNFPOs, with a view to high light the complains and deviations from the statutory stipulations and accounting standards in trend. It also seeks to understand accounting processes and Financial reporting practices in NGNFPO s and the conditions that sustain or Improve those processes and practices. Furthermore, this stud y provides an insight into the accounting and financial reporting practices of NGNFPOs so as to provide the extent to which NGNFPO meet statutory stipulations, accounting standards, and other legal Requirements. This involved the examination of over 69 annual reports (both audit report s and annual activity reports) o f NGNFPOs and the administration of a survey instrument, documentary analysis and in -depth interview setting . This study employed pragmatic worldviews of research design, which applies to mixed Method research in that inquirers draw liberally from both quantitative and qualitative Assumptions when The number of NGNFPOs in Ethiopia and their activities has multiplied in the past there to four decade but little information exists on how well these organizations report on their performance to their constituents and the general public. The purpose of this study is to examine and appraise exist in g accounting and financial reporting practices of NGNFPOs, with a view to highlight the complains and d aviations’ from the stat story stipule lat ion s and accounting standards in trend. Ital so seeks to understand accounting processes and Financial reporting practices in NGNFPO s and the conditions that siesta in o r Improve those processes and practices. Furthermore, this study provides an insight into the account in g and financial reporting practices of NGNFPOs so as to provide the extent to which NGNFPOs meet statutory stipulations, accounting standards, and other legal requirement ~. This involved the examination of over 69 annual reports (both audit Report s and an nu al activity reports) of NUNFPOs and the administration of a survey instrument, do cu me ntaryanalys is and in -depth in tereview setting. This stud y employed pragmatic worldviews of research design, which applies to mixed method research in that inquirers draw libeberall from both quantitytative and qualitative assumptions when they engage in their research to address research problem. Mixed methods approach, which is believed to mitigate the biases of quantitative and qualitative approaches, is one in which a researcher tends to base knowledge claims on pragmatic grounds employing strategies of inquiry that involve collecting both quantitative and Qualitative data either concurrently, sequentially or transfonnativlly to best understand research problems (Creswell, 2009).
The Application of Management Control System in Ethiopian Commercial Banks
(A.A.U, 2011-06) Eshetie, Aichew; P., Ulaganathan(Dr.)
Banking sector is one of the most successful financial institutions in Ethiopia, however, there is virtually no formidable study on management control system about this sector. The increasing knowledge and understanding on the application of management control system, for the area in which this research was undertaken by benchmarking of the same research undertaken in other country, were taken as the major initiators of this study and were the rationale to the research. This study focused only the application of management control system in Ethiopia Commercial Banks even if there were different managerial issues in the banking industry at the head and branch offices as well. An institution based cross sectional descriptive study with analytic components was conducted in Ethiopian commercial banks which are functioned at Addis Ababa. The study employed both quantitative and qualitative study approaches. Study population for the survey was employees, officers and mangers of the banks. Besides, for the qualitative part, key informant interviews were conducted with mangers and officers of the banks. A questionnaire with five Likert scale for the survey which is mainly used for quantitative part, and Semi-structured interview guide for the qualitative were used as data collection tools. SPSS version J 9 for windows was employed to perform statistical analysis. Findings were displayed using tables, and pie-charts. The regression results show that strategic planning and management; and performance measurement have positive and statistical significant contribution on management control system of Ethiopian commercial banks. this is as similar result with (Sinikka 2007).Besides, the commercial banks are competing mainly in service and many of them adapting differentiation strategy. The priority of the majority of commercial banks is customer retention. Commercial banks are encouraging employees to upgrade their knowledge and skill on the basis of experience or service offer to the bank. However, some problems were also there ; human capital, benefit entitlement t, liquidity and responsibility center. There fore, the commercial banks need to give due attention for these problems, giving and preparing continuous training for employees and evaluating training results.
The Application of Management Control System in Ethiopian Commercial Banks
(A.A.U, 2021-02) Haileleul, Tigist; Kassie, Dr. Abebaw
This paper attempts to investigate the application of management control system in Ethiopian Commercial Banks.Banking sector is the most successful among the financial institutions in Ethiopia; however, there is practically no formidable study on management control system about this sector. The objective of this study is to assess the application of management control system in Ethiopia Commercial Banks. An institutional based cross sectional descriptive study was conducted in the selected commercial banks of Ethiopia which are functioning in Addis Ababa. The study used both quantitative and qualitative study approaches. Study population for the survey was CBE employees mostly mangers of the banks.From the total of 18 commercial banks in Ethiopia on the basis of the establishment date and category as eldest, older and younger banks the researcher purposively selected 6 commercial banks and examined in this study.The total number of 219 respondents drown from CBE employees. Stratified sampling technique was appliedso as to obtain the required sample size of 219 on the basis of the establishment date. Primary data was collected through self-administered questionnaire. A questionnaire with five Likert scale for the survey which is mainly used for quantitative part. STATA software package was employed to perform statistical analysis. Findings were displayed using tables and charts.The result of the study shows that CBE’s apply various management control practices and techniques such as planning and control, strategic planning and management, performance measurement, and compensation and benefit plan that contributes for the management control system in Ethiopian commercial banks. Key words: Management control system, commercial bank, planning and control, strategic planning management, performance measurement, and compensation and benefit.
Appraisal of Woreda-level Fiscal Decentralization in Addis Ababa City Government: with Particular Reference to Selected Woredas
(Addis Ababa University, 2017-06) Ansaw, Eyob; Gebremedhin, G/Hiwot (Ato)
Fiscal decentralization is seen as part of a reform agenda in developing countries to strengthen regional and local governments. It is believed that it improves the efficiency of public service delivery through preference matching and allocation efficiency. In light of this, this study was conducted to assess the practices of Woreda level fiscal decentralization in Addis Ababa City Government. In doing this study, explanatory mixed method research design was followed. Subjects of the study were government officials working in selected Woredas and sub-cities of Addis Ababa city. In the study, multi-stage sampling technique was used to select representative respondents. To this effect, one hundred ninety-two participants were selected using multi-stage sampling technique. Besides, sub-city and Woreda Finance and Economic Development Bureaus officials were purposely selected to conduct key informant interviews. The data gathering instruments were questionnaire, key informant interviews, and document analysis. The study followed statistical tests to test the research hypotheses. It applied Kruskal Wallis test of significance. The study involved strict respect for informed consent, voluntary participation, and confidentiality. The findings of the statistics tests indicates that respondents’ responses concerning autonomy of Woredas in planning and budgeting, revenue generation and retention, expenditure assignments were significantly different. This implies that there is absence of uniformity in the practices of these aspects of fiscal decentralization in the city. On the contrary, the respondents’ response concerning the functionalities of institutional and legal frameworks, inter-governmental fiscal relations, challenges, and constraints of fiscal decentralization, were not significantly different. In general, the practice of fiscal decentralization in the city was limited as existing institutional and legal frameworks were in short of clarity and uniformity. Respondents stated that Woreda administrations had weak revenue base, and need clear planning and budgeting, and expenditure assignment autonomy. Based on the findings of the study, the research hence recommended that existing institutional and legal frameworks should be structured in the way that it enables Woreda administrations to generate and utilize sufficient revenues, plan and budget their own activities, have clear autonomy of expenditure assignments. Inter-governmental fiscal relations should also be planned to reduce the vertical imbalances observed at Woreda Administration level.
Assessing Determinants of Taxpayers' Voluntary Compliance: in the Case of Addis Ababa Number One Medium Taxpayers Branch Office
(A.A.U., 2022-11-06) Aklok Kassa Yimam; Abebaw Kassie (PhD)
The study aimed to examine the impact of tax audits on taxpayers’ compliance in the case of Addis Ababa number one medium taxpayer using cross-sectional data from tax auditors and taxpayers a sample of (60 tax audits and 228 taxpayer) respondents. The data generated to meet these objectives were collected via closed-ended structured questionnaires. Out of 60 selected tax auditors 52 respondents’ was responded to the questionnaire and Out of 228 selected taxpayers 196 respondents’ was responded to the questionnaire .To realize the research objectives descriptive analysis method was employed using SPSS version 26. The research found that the tax auditors observation about types of tax audit in relation to voluntary tax compliance, the highest percentage 38.50 percent of tax auditors confirmed that field tax audit is better for tax compliance, on the contrary the highest percentage 32.10 Percent taxpayers was mentioned that non of any types of tax audit is better for tax compliance. This numbers showed that the taxpayers and tax auditors had different kno whow about the types of tax audit. The researcher was tried to investigate the taxpayers observation about the frequency of tax audit schedule, the highest percentage 43.4 percent of taxpayers was mentioned that tax audit office audit schedule was once within four years, on the contrary the highest percentage 48.1 percent of tax auditors confirmed that their audit schedule once in a year. This numbers showed that the taxpayers and tax auditors had different knowhow about the tax office audit schedule. Based on the final observation of tax auditors and taxpayers about the primary purpose of tax audit, 50 percent of taxpayers and 61.5 percent of tax auditors were believed that tax audit is used to achieve tax revenue collection targets, instead to improve the general taxpayer’s compliance.
Assessing Factors that Affect Non-Performing Loan in Ethiopian Commercial Banks: A Case of Selected Commercial Banks
(A.A.U, 2024-02-01) Yabsira Bizuwork; Abebaw Kassie (PhD)
The study aims to assess the major bank specific, customer specific and macro factors that affect Nonperforming loans in case of 5 selected commercial banks namely, Commercial bank of Ethiopia, Awash bank, Bank of Abyssinia, Dashen bank and cooperative bank of Oromiya since they are top 5 banks in their asset position and registered highest profit in the fiscal period of 2022G.C. To achieve this objective both descriptive and explanatory research design with mixed research approach was used. A total of 151 samples were selected from the 5 banks who are engaged in credit activity. Interviews and questionnaires were the main data sources used in the data collection process. A range of publications, bank policies and guidelines, online articles, and other textual materials were also examined in order to collect secondary data. Using computer-loaded SPSS software, descriptive statistics such as mean, frequency, percentage, and standard deviation were processed for data analysis. The study result has found that poor credit assessment, credit monitoring, banks profitability which can be associated with aggressive lending, rapid credit growth and bank’s great risk appetite, elongated process of loan approval and fails to have technological advancement as bank specific causes while diversion of loan fund, lack of knowledge and experience of customers about project management and willful default as customer related factors for the existing of loan default. Besides the inflation rate, the level of GDP, political instability and frequent changes of rule and regulations has influence on the rise of NPL. However, the study outcome failed to support the existence of relationship between collateralized lending and interest rate on occurrences of nonperforming loans. In general, according to the study, banks should implement effective due diligence assessment and strong monitoring policies so as to have a better loan portfolio. Moreover the banks should consider the effect of customer related and external influences in availing a loan.
Assessing the Effect of Taxpayer Education Programs in Enhancing Tax Compliance in The Case of Addis Ababa Taxpayers
(A.A.U, 2024-06-01) Dagmawe Kassahun; Samuel Kifel(PhD)
Tax compliance is crucial for generating government revenue, which in turn supports public services and infrastructure. However, in Ethiopia, a significant challenge remains in non-compliance, often due to a lack of understanding or awareness of tax obligations. This is because the tax education program provides limited comprehensive knowledge and inadequate outreach to the taxpayers. Therefore, this study aims to assess the effect of tax education programs on enhancing tax compliance, focusing on general, legal, and procedural tax knowledge provided to taxpayers, as well as the methods used to reach information to the taxpayers in the Addis Ababa Medium regional taxpayers. The research design adopted was an explanatory research design based on closed-ended and unstructured interviews conducted with each branch of the tax education department managers to gain an in-depth understanding and a sample of 330 out of 390 participating taxpayers in the education program was used in this study, employing purposive and clustering sampling techniques to select from each medium region tax branch found in Addis Ababa, The findings indicate a statistically positive effect of general tax knowledge, legal tax knowledge, procedural tax knowledge, and outreach methods prepared by the tax branches in enhancing taxpayer compliance level. Based on the analysis of questionnaires and interviews with the taxpayers, the research recommends a widespread presence on social media. The tax authority should increase engagement on platforms like Telegram and Facebook, providing regular updated information and interactive sessions. Additionally, the tax authority of the medium taxpayers should partner with universities and colleges to incorporate tax education, and the education program supervisory framework should be implemented to monitor and evaluate the effectiveness of these programs regularly.

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