“The Impact of Extended Audit Tenure on Auditors independence and Audit Quality a case study of Welmera Woreda Finance”

Abstract

In addition to being regarded as an ethical concern by auditing associations such as the International Federation of Accountants, an auditor's independence is the cornerstone of a successful audit. In order to provide an opinion on the genuine and fair picture of the financial statements that management has given, the stakeholders demand that the auditors adhere to the fundamental principles of the profession as an impartial outside third party. This study's primary goal is to investigate if longer audit tenures may result in the appearance of risks to auditor independence that could compromise that independence. The main cause of poor audit quality and subsequent audit failures is the auditors' lack of independence, which is thought to be a byproduct of the auditor-client relationship. The researcher will use a variety of audit firms, including a large number of auditors in Welmera Woreda Finance, to examine the findings. The researcher will employ the stratified random sample technique and use a questionnaire to gather primary data. With the aid of SPSS, the responses will be analyzed both quantitatively and qualitatively. In fact, the results of the study demonstrate that, when examined under various circumstances, both a short and a prolonged audit tenure will have an effect on the independence of the auditors and the quality of the audit, even though the impact is greater in the case of an extended audit tenure.