The Assessment of Quality External Audit Services: Evidence from Grades ‘A’ Private Audit Firms of Ethiopia
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Date
2016-01
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Addis Ababa University
Abstract
The study has been conducted with the aim of assessing the quality of external audit services like
quality of services and sufficiency of resources, exercises of professional skepticism, professional
independence and objectivity and external auditors’ communications.
To enable the researcher address the objectives of the study, a descriptive research was the
preferred choice since it was meant to present a picture of the specific details of a quality audit
services settings. The study is based on an interpretive approach employing survey
questionnaires. The data collection was through Self-administered questionnaires and based on
convenience sample selection 10 head of private audit firms, 10 auditor managers and 10 senior
auditors totally 30 respondents selected. Totally 30 questionnaires were distributed and
collected to 10 grades ‘A’ private audit firms and a response rate of 100%. The collected data
fulfills construct validity (both convergent and discriminant validity) and reliability. The external
auditors must remain independent and objective throughout the provision of their external audit
services and when formulating their audit opinion. They need to be met prior to the appointment
of professional financial advisors for non-audit services to safeguard the independence and
objectivity of the external auditors. The provision of additional non-audit related services by the
external auditor has the potential to impinge upon their independence and objectivity.
The survey result shows that as per majority of respondents’ perceptions grades ‘A’ authorized
private audit firms are not independent and objective during their audit work.
Key words: External Auditor, External Audit Services, Quality External Audit Services, non-
audit services.
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Keywords
Etxernal auditor, External audit services, Quality external audit services, non-audit services