Factors Affecting External Auditor’s Independence in Ethiopia: in Case of Private Audit Firms in Addis Ababa
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Date
2024-06-02
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A.A.U
Abstract
This study was examined factors affecting External auditors’ independence in Ethiopia with
reference to external private audit firms in Addis Ababa. The researcher employed mixed research
approach with explanatory research design where the effect caused by the independent variable
on the dependent variable is observed through descriptive, inferential and regression analysis.
Primary data was collected through structured questionnaire from 99 auditors of private audit
firms. Accordingly, the result of descriptive, inferential and regression analysis showed that size
of audit firm, audit tenure, provision of non-audit service, audit firm age, management support
and information technology have positive and statistically significant effect on external auditors’
independence. Based on the findings of the study, the researcher recommended audit firms to
rotate their auditors periodically, provide assessment and training programs, audit managers to
assess auditors’ independence during audit engagement period, audit firms to cope-up with existed
and upcoming standards and technologies and the concerned government body to make restriction
on provision of non-audit service in order to improve auditors’ independence.