THESIS ON THE ASSESSMENT OF EXTERNAL AUDIT PRACTICE IN ETHIOPIA: IN THE CASE OF RIVATE AUDIT FIRMS IN ADDIS ABABA

Abstract

The purpose of this study is to assess the factors that may affect the audit quality of external private audit firms in Ethiopia, focusing on the effect of expertise and independence on audit quality. To achieve the objective, the study used a mixed research method and tested a sample survey questionnaire distributed to auditors working in private audit firms in Ethiopia. The SPS 20 version statistical package was used in the study using simple random sampling to obtain a reliable response. The surveys were selected to be closed ended and personal interviews were conducted with those who are currently working and understanding of the practice. The information obtained from the questionnaire was analyzed using descriptive statistics, and the interview material was qualitatively interpreted. The results of the study show that auditors are responsible for the quality of the audit during the audit and are legally responsible for what is subsequently observed in the audited annual accounts. Currently, auditors in the field are positively inclined towards the most positive practices, but the lack of enforcement and training systems has resulted in a lack of practice in the field. The solutions to most practice problems appear to be strengthening government control of the practice and training operators to meet global standards.