Abstract:
The auditor of independence is not only been viewed as an ethical issue within the different
auditing professional bodies like the International Federation of Accountants (IFAC), but also it
was the bedrock upon which a successful audit is based. The stakeholders require the auditors to
stay true or fairness to the main credence of the profession as an independent outside third party
to give an opinion on the true and fair view of the financial statements presented by management
and other officials. The main purpose of this study was to examine whether extended audit tenures
can lead to the emergence of threats to auditor independence which impair and influence auditor
independence. Lack of audit quality and subsequently audit failures result mainly come from a
lack of auditor’s independence which is considered to a consequence of the extended auditor client
relationships. To investigate the findings, the researcher uses a sample of five audit firms like
walmera wereda Revenue office, cooperative office,walmera wereda court and holeta town finance
which includes a total of 121 auditors in walmera wereda. The researcher also uses random
sampling techniques and collects primary data through questionnaires. The responses get are
analyze using a quantitative and qualitative approach with the help of SPSS version 29.
