The Impact of Extended Audit Tenure on Auditors Independence and Audit Quality In Walmera Wereda Finance

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.