The Role of Auditing in Ensuring Transparency & Accountability: The Case of Selected Civil Society Organizations in Ethiopia
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Date
2025-02-04
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A.A.U
Abstract
This study examined the role of auditing in ensuring transparency and accountability within the
civil society sector in Ethiopia. The research employed a mixed-methods approach and utilized a
purposive sampling technique. The study employed data collection instruments such as a
structured questionnaire, interview questions, and a desk review. The respondents include
management-level staff with 115 valid survey responses received, as well as 20 senior leaders
and finance managers who participated in in-depth interviews. The findings revealed that
external financial audits had a role in the transparency of financial reporting and operations
within the selected Civil Society Organizations. The study demonstrated clear evidence of
compliance with relevant regulations and standards, which is crucial for establishing their
credibility and commitment to transparency. The study revealed that external audits were also
effective in identifying areas for improvement in financial and non-financial reporting.
Furthermore, the study shows that mandatory external financial audits have a role in the
accountability mechanisms within the Civil Society Organizations. The study shows clear
evidence that auditing provides assurance to stakeholders regarding the accuracy and
completeness of their reporting. The Civil Society Organizations have also demonstrated
responsiveness to stakeholder concerns, with the majority ensuring transparency and
accountability through active stakeholder engagement. However, the study revealed that Civil
Society Organizations face documented challenges in effectively utilizing the findings from
external financial audits to improve their transparency and accountability practices. The study
recommends that the organizational capacity of Civil Society Organizations be strengthened,
comprehensive guidelines and standards for financial reporting and stakeholder engagement be
developed, and a more inclusive approach to stakeholder involvement be adopted throughout the
audit process.