Effectiveness of audit practice in improving financial performance in the case of selected private organisations in Addis Ababa
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Date
2024-06-04
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A.A.U
Abstract
The objective of this study was to find out the Effectiveness of audit practices in improving
financial performance in the case of selected private organisations in Addis Ababa. The project
was conducted among the 40 Addis Ababa city government private companies. This study used
descriptive and inference research designs. The sample was administered a structured
questionnaire to collect primary data. Secondary sources of data include other research and
projects before interviews with some experts. The data were analyzed with a statistical package
of social sciences (S.P.S.S.). The study concluded that the relationship between financial
performance and audit quality is positive and significant. In particular, the study found
negative relationships with the provision of non-audit services and positive links between
financial performance and compliance with audit standards, the independence of auditors and
the professional qualifications and experience of auditors. The research recommends that
private organizations pay attention to the quality of the audit they receive from external
auditors, as the results have shown that it affects financial performance. The study
recommended further research into the definition and measurement of audit quality.