Determinants of External Audit Effectiveness in the Hospitality Industry in Ethiopia: the Case of Five-Stars Hotels in Addis Ababa
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Date
2025-03-05
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AAU
Abstract
This study examines the determinants of external audit effectiveness in Ethiopia’s
hospitality industry, focusing on five-star hotels in Addis Ababa. It explores the impact
of auditor qualifications, independence, regulatory frameworks, management
cooperation, and industry-specific challenges on audit effectiveness. A quantitative
approach was employed, combining quantitative data collected through structured
questionnaires from external auditors and hotel management. Descriptive and
inferential statistical methods were applied using STATA software to analyze the
data. Findings indicate that auditor competence, independence, and a strong
regulatory framework significantly enhance audit effectiveness, while industry
challenges and limited management cooperation hinder the process. The study
underscores the need for strengthened regulations and improved collaboration
between auditors and hotel management to enhance financial transparency and
accountability in the sector