Determinants of External Audit Effectiveness: The Case of Amhara National Regional State Bureaus

Tesega Tadesse Demeke

doi:10.11648/j.ijeee.20200506.11

Abstract

This paper aims to find out the Determinants of external audit effectiveness when performing its duties and responsibilities to examine the most significant Determinants among them with particular emphasis on Amhara National Regional State budgetary bureaus using mixed research approach. Primary data were collected using questionnaire and Interview by using descriptive statistics and multiple regression analysis methods. The main findings of the study were public sectors’ assets had been unable to provide reasonable assurance by auditing whether the general objectives of organizations are accomplished. These indicated that there is Weakness in the internal control of entities which includes effective systems of risk management, an effective internal audit function, internal control and an audit committee as part of the framework of control. To address the problems stated above the public bodies should give due attention to establish an audit committee, comprising nonexecutive members with the responsibility for independent review of the framework of control of the external audit process.

Highlights

IntroductionThe principal objective of an audit, in addition to expressing an opinion on the truth and fairness of the financial statements, is expected to give suggestions on the audit entity’s compliance with the applicable authorities, laws, regulations, rules, policies and procedures [1]
Introduction of the StudyAuditing is the process by which a competent independent person accumulates and evaluates evidence about quantifiable information related to a specific economic entity for the purpose of determining and reporting on the degree of correspondences between the quantifiable information and established criteria [4].The principal objective of an audit, in addition to expressing an opinion on the truth and fairness of the financial statements, is expected to give suggestions on the audit entity’s compliance with the applicable authorities, laws, regulations, rules, policies and procedures [1]
The general objective of this study is to examine the determinants of external audit effectiveness in Amhara National Regional State Bureaus

Summary

Introduction

The principal objective of an audit, in addition to expressing an opinion on the truth and fairness of the financial statements, is expected to give suggestions on the audit entity’s compliance with the applicable authorities, laws, regulations, rules, policies and procedures [1]. This clearly indicates that the Auditor General significantly contributes in promoting accountability and transparency and the necessity to be credible in the eyes of the citizens. The purpose of this study is designed to inspect determinants of external audit effectiveness taking government organizations/offices residing in Bahir Dar as a case. Regarding property of the organizations, there is no adequate asset management like lack of supporting documents, formal property records, appropriately cross referenced documents, evidencing receipt and issuance vouchers, documenting to support legal government’s claims, resulting in insufficient evidence to confirm significant amount of the account receivable

Objectives

Results

Conclusion