Evidence of the Determinants of Audit Quality: A Non-governmental Organisations Perspective in Uganda

Abstract

While audit quality has been widely investigated on the global scale, little research has been conducted on the determinants of Audit quality for non-governmental organizations (NGOs) and in the context of Uganda. This article is motivated by the unending observations of audit quality determinants being unclear and indecisive. Using a cross sectional research design and a quantitative approach with the aid of a self-administered questionnaire, this article investigates what the finance/procurement managers for NGOs in Uganda perceive to be the key quality determinants for the work done by auditors. Whereas results generally reveal that auditor fees, auditor firm size, auditor competence, auditor independence, and number of audit assignments significantly relate with audit quality, auditor tenure and auditor age were found to have insignificant effects on audit quality. This article therefore provides more insightful evidence about the ongoing discussions on the determinants of audit quality for NGOs in Sub-Saharan African, particularly from the Ugandan perspective.

Keywords: Audit quality, auditor competence, firm size, auditor tenure, auditor fees, NGOs, Uganda.

DOI: 10.7176/DCS/11-6-04

Publication date:June 30^th 2021