Abstract:
The practice of auditing firms has been growing. Many audit firms have come
forward to provide audit services. There are concerns that have been raised
regarding the conflict of interest between the official role of the auditor and other
client services; the emergence of global accounting failures has brought great
frustration to investors and other shareholders. Based on this, the general objective
of this study implied factors affecting external audit effectiveness in saving and credit
cooperatives. The independent variables of audit effectiveness are audit fee,
professional skill (competence), independence, cooperation, management support,
experience, audit evidence, training, motivation and SACCO size. The study used
descriptive and explanatory research design with mixed qualitative and quantitative
methods. The population of study constituted of external auditors and accountants
among selected SACCOs in the study area which are 60 in numbers. The study used a
census sampling method which means all 60 populations are used to analyze data
collected through questionnaires. The study used primary sources of data through
questionnaires and interview. The total of 60 questionnaires were, distributed to
auditors and accountants of all selected saving and credit cooperatives, and 59 (a 98
% response rate) had collected. The data were analyzed through descriptive and
inferential statistical tools such as mean, standard deviation, correlation, and
multiple regression analysis with the help of Statistical package of social science
(SPSS version 23). The research concluded that audit fee, professional skill
(competence), independence, cooperation, management support, experience, audit
evidence, training, and motivation have a positive and significant effect (at 5%
significant level) on Audit effectiveness; while the SACCO size seem to have a
negative and insignificant effect on Audit effectiveness. The study recommend that
saving and credit cooperatives should improve audit effectiveness through audit fee,
professional skill (competence), auditor’s independence, cooperation from the
auditee, management support, experience, audit evidence, training, and motivation.
