| Abstract: | The growth and development of any nation depend on the amount of revenue generated and used by the government on public infrastructure. A major problem inhibiting effective tax administration in emerging economies is tax evasion. To prevent this problem countries introduced a tax audit system. Therefore, the objective of this study is to investigate factors affecting task audit effectiveness. The research is done in Addis Ababa City Administration Revenues Authority Addis Ababa No 1 and No 2 Medium Tax Payers Branch office. From the branch office only Tax audit work process department taken as the source of data. The research used primary and secondary data collection methods to strengthen its output. The study covers the total sample population of about 177 tax audit workers. From this population, 43.5% of respondents are located on Number 2 and the remaining 56.5% located on number 1. By using factor analysis, structural factor analysis, and the 50th percentile respondents argumentative value of tax-audit effectiveness results in the correlation result the research find out that, there is positive influence of independent factors , Structural Factors, Risk Factors, Auditing Capability and tax evasion and avoidance strategy) can play a great role in an increment of tax audit effectiveness. The research find out that, by increasing a positive (or reducing the negative) influencing actors the case organization can enhance taxpayers, community, and the tax collector (auditor) positive influence on tax audit effectiveness. In addition, to that this research find out that, The positive influence of independent factors (such as Structural Factors, Risk Factors, Auditing Capability) can play a great role in the positive increment of tax audit effectiveness. |
