Auditors Professional Responsibility and Legal Liability with Regard to Private Auditors in Ethiopia
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Date
2019-06
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Publisher
Addis Ababa University
Abstract
This study examines private auditor’s professional responsibilities and legal liability in the
context of Ethiopia. The study used descriptive research design and mixed research approach.
Furthermore, the study adopts cluster and purposive sampling techniques to collect a data from
target population of the study; the target population of the study was classified in to five clusters
based on their business type. More specifically, the data were collected from the primary and
secondary source. To achieve the objective of the study, the data were collected through
questionnaire and interview; the questionnaire was prepared with close-ended and open-ended
questions and distributed to 72 professionals from different organizations and audit firms.
Interview was made with 6 officials those are combined from Ethiopian accounting and auditing
board and as well as Ethiopian revenue and customs authority. The data collected was analyzed
through descriptive statements, graphs and figures. The finding of the study reveals that;
absence of well-organized professional bodies, selection of auditors based on family or friends
relationship, dependence of auditors on their client’s for financial and other interest, forwarding
of an opinion based on the demand of their clients, and irregularity of laws and regulations are
causes auditors not to properly exercise professional and legal responsibilities in Ethiopia. This
study recommends concerned bodies to formulate strong professional association of auditors to
follow up the activity of private auditors.
Description
A thesis submitted to department of Accounting and Finance as a
Partial fulfilment of the requirements for master of Science
Degree in Accounting and Finance
Keywords
Legal liability, Private auditors in Ethiopia, Professional Responsibility