Determinants of Perceptions of External Auditors‟ Independence in Ethiopian Private Audit Firms
| dc.contributor.advisor | Kassie, Abebaw (PhD) | |
| dc.contributor.author | Waktola, Shumie | |
| dc.date.accessioned | 2018-06-29T11:49:05Z | |
| dc.date.accessioned | 2023-11-04T07:59:33Z | |
| dc.date.available | 2018-06-29T11:49:05Z | |
| dc.date.available | 2023-11-04T07:59:33Z | |
| dc.date.issued | 2016-01 | |
| dc.description.abstract | Auditor independence is fundamental to public confidence in audit reporting and the auditing profession. The users of audit reports must have confidence in the integrity and objectivity of auditors. Without definite auditors’ independence audit profession has little value. This study examines factors affecting auditors’ independence in Ethiopian private audit firms. Survey research design was employed in carrying out the study. Data were collected using Likert- rated questionnaire; which was administered to 78 auditors in 26 Audit firms in Ethiopia. All audit firms of grade A and B in Ethiopian were covered for the study. Analysis was carried out using descriptive statistics and, regression analysis while hypotheses formulated were tested by fitting the regression equation for significance. The results revealed that level of competition in the audit services market, tenure of an audit firm serving the needs of a given client and size of audit fees received by audit firm in relation to total percentage of audit revenue do have negative and significant effect on auditors independence and the provision of non-audit service has positive significant effect on auditors’ independence. Size of audit firms and existence of audit committee do not have significant effect on auditor independence for this study. Client related factors and industry situation do have significant effect on auditor’s independence. The main recommendation is that auditors should remain strictly independent in mind and in appearance. Key words: Auditors, independence, Ethiopia, audit firm, tenure, AudiAuditor independence is fundamental to public confidence in audit reporting and the auditing profession. The users of audit reports must have confidence in the integrity and objectivity of auditors. Without definite auditors’ independence audit profession has little value. This study examines factors affecting auditors’ independence in Ethiopian private audit firms. Survey research design was employed in carrying out the study. Data were collected using Likert- rated questionnaire; which was administered to 78 auditors in 26 Audit firms in Ethiopia. All audit firms of grade A and B in Ethiopian were covered for the study. Analysis was carried out using descriptive statistics and, regression analysis while hypotheses formulated were tested by fitting the regression equation for significance. The results revealed that level of competition in the audit services market, tenure of an audit firm serving the needs of a given client and size of audit fees received by audit firm in relation to total percentage of audit revenue do have negative and significant effect on auditors independence and the provision of non-audit service has positive significant effect on auditors’ independence. Size of audit firms and existence of audit committee do not have significant effect on auditor independence for this study. Client related factors and industry situation do have significant effect on auditor’s independence. The main recommendation is that auditors should remain strictly independent in mind and in appearance. Key words: Auditors, independence, Ethiopia, audit firm, tenure, Audit market, audit fees, Non audit services and Audit committeet market, audit fees, Non audit services and Audit committee | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/5039 | |
| dc.language.iso | en_US | en_US |
| dc.publisher | Addis Ababa University | en_US |
| dc.subject | Auditors | en_US |
| dc.subject | Independence | en_US |
| dc.subject | Ethiopia | en_US |
| dc.subject | Audit firm | en_US |
| dc.subject | Tenure | en_US |
| dc.subject | Audit market | en_US |
| dc.subject | Audit fees | en_US |
| dc.subject | Non audit services and audit committee | en_US |
| dc.title | Determinants of Perceptions of External Auditors‟ Independence in Ethiopian Private Audit Firms | en_US |
| dc.type | Thesis | en_US |