The Impact of Extended Audit Tenure on Auditors

Topics: Audit, Auditing, Auditor's report Pages: 93 (32424 words) Published: June 22, 2013
Addis Ababa University School of Business And Public Administration Department of Accounting And Finance

The Impact of Extended Audit Tenure on Auditors Independence And Audit Quality In Addis Ababa

By

Amsalu Gelaneh

June 2011 Addis Ababa

Addis Ababa University School of Business And Public Administration Department of Accounting And Finance

The Impact of Extended Audit Tenure on Auditors Independence And Audit Quality In Addis Ababa

By: Amsalu Gelaneh

Advisor: Dr. Laxmikantham P.

A Thesis Submitted To The School Of Graduate Studies Of Addis Ababa University In Partial Fulfillment Of The Requirement For The Degree Of Masters In Accounting and Finance

June 2011 Addis Ababa

Addis Ababa University School of Business And Public Administration Department of Accounting And Finance

The Impact of Extended Audit Tenure on Auditors Independence And Audit Quality In Addis Ababa

By: Amsalu Gelaneh
Advised by: Name --------------------------------------Signature----------------------------------Date ---------------------------------------Examined by: Name 1. ----------------------------------------2. ----------------------------------------3. ----------------------------------------Signature --------------------------------------Date ---------------------------------------June 2011 Addis Ababa

Statement of Certification
This is to certify that Amsalu Gelaneh has carried out his research work on the topic entitled “The impact of extended audit tenure on auditors independence and audit quality in Addis Ababa” under my supervision. This work is original in nature and it is sufficient for submission for the partial fulfillment for the award of MSc In Accounting and Finance.

Advisor: Dr. Laxmikantham P. Signature:-----------------------Date:-----------------------------

I

Statement of Declaration
I, Amsalu Gelaneh, have carried out independently a research work on the topic entitled “The impacts of extended audit tenure on auditors independence and audit quality with regard to private auditors in Addis Ababa” in partial fulfillment of the requirement of the MSc program in Accounting and Finance with the guidance and support of the research advisor. This study is my own work that has not been submitted for any degree or diploma program in this or any other institutions.

Amsalu Gelaneh June 2011

II

Acknowledgements
First of all I am truly indebted to thank the almighty God for helping me in the successful accomplishment of this paper.

I would like to express my deepest gratitude to my advisor, Dr. Laxmikantham P., for all his assistance and willingness to share his knowledge and experiences with me. This small piece of appreciation can not fully convey my heartfelt gratitude towards him. Next, but third to none, my deepest gratitude goes to the “Love of my Life” Tigest Nigusie, for her surpassed commitment and determination in dealing with all my affairs. Being with her is the very best thing that ever happened in my life!

I am also very thankful to all of those audit firm employees who were very cooperative in providing the necessary data and information by taking time for answering the questioners.

Last , but not by any means least, and yet importantly, I want to extend my sincerer thanks to my wonderful friend, Naod Mekonnen and my best brother, Yosef Alemu, for all their positive comments and cooperation in this paper. Also I would like to extend my thanks to my golden uncle, Destaw Derso, and my lovely sister, Berkie Gelaneh, for their moral and financial support from the beginning up to the accomplishment of this paper.

III

Acronyms/Abbreviations
AICPA: CPA: ECSAFA : ECSC : EFAA: EPAAA: FASB : GAAP: GAAS: GAO: ICAA : ICAEW: IFAC: ISA: NAS: OFAG : POB : SOE : SOX: U.S. SEC: American Institute of Certified Public Accountants Certified Public Accountants Eastern, Central, and South African Federation of Accountants Ethiopian Civil Service College European...

References: Articles and Books
Abu, Emelin, Sharifah and Mohammad (2006), Auditor-client relationship: the case of audit tenure and auditor switching in Malaysia, available at<> accessed on Apr 2011
82
David (2007), Government Auditing Standards: United States Government Accountability Office (GAO)
83
Geoffrey, David, DeMatteo and David (2005), Essentials of Research Design and Methodology
84
Lloyd, Don and Max (2003),The Failure of Auditor Independence: Cognitive, Structural, Legislative, and Political Causes, available at << http://www.people.hbsedu/mbazer man /Papers/03-115.pdf>> accessed on Jan 2011
85
Philmore, Dwayne and Peter (2006), Perceptions of auditor independence in Barbados, available at<> accessed on Feb 2011
86
Swapan (2004),Safeguarding Auditors Independence: The Profession at the Crossroads, available at << http://220.227.161.86/10876p821-826.pdf>> accessed on March 2011
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