THE ASSESSMENT OF EXTERNAL AUDIT PRACTICE: IN THE CASE OF PRIVATE AUDIT FIRMS IN ADDIS ABABA

Abstract

The purpose of this thesis is to evaluate the factors that may affect the quality of audits performed by external private audit companies in Addis Ababa, with a particular emphasis on the impact of independence and experience. In order to accomplish the goal, a sample survey questionnaire that was sent to auditors employed by Addis Ababa-based private audit firms was tested as part of the study's mixed research methodology. By employing basic purposive sampling to get a trustworthy answer. Closed-ended surveys will be chosen, and in-person interviews with people who are employed and knowledgeable about the field will take place. Descriptive statistics are used to examine the data from the questionnaire, and qualitative analysis is used to interpret the information from the interviews. 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