Factors Influencing External Auditors’ Independence of Private Audit Firms in Ethiopia

Abstract

This study was examined factors affecting auditors’ independence with reference to private audit firms in Ethiopia. The researcher employed quantitative research approach with explanatory research design where the effect caused by the independent variable on the dependent variable is observed through regression analysis. Primary data was collected through structured questionnaire from chive executive officers of private audit firm. Accordingly, the result of regression analysis showed that size of audit firm, size of audit fee, professional audit standard, competition, existence of audit committee and information technology have positive and statistically significant effect on auditors’ independence. Whereas, provision was not statistically significant. Based on the findings of the study, the researcher recommended that for audit firms in Ethiopia have to work on statistically significant variables due to fact that they have positive influence in improving auditors’ independence.

Keywords: Determinants, Auditors’ Independence, Private Audit Firms, Ethiopia

DOI: 10.7176/RJFA/12-11-04

Publication date:June 30^th 2021