| Abstract: | The aim of this study is to identify the factors affecting external audit quality in Ethiopian audit firms. The study adopted explanatory research design and quantitative method of research approaches .The study uses primary data that collected using close ended questionnaires. From the total population of Two hundred seventeen external audit firms licensed and registered in Addis Ababa Accounting in Auditing Board of Ethiopia (AABE), Sixty five audit firms are selected based on convenience sampling and one hundred forty questionnaires are distributed. Seven questionnaires are distributed for each firm. The questionnaires are answered by principal/partners, Director/ Audit Managers, senior and Junior audit position. The results of multiple regression reveal that auditors’ level of education, professionalism, and auditors’ information and technology usage have positive and significant effects on external audit quality . The result further shows auditors’ work experience and Auditors’ evidence-based approach and have a positive and negative with insignificant effect on external audit quality respectively. Therefore, this is a clear signal to audit firms, professional associations and the Accounting and Auditing Board of Ethiopia (AABE) not to ignore the key determinant factors of Auditors’ professionalism, auditors’ level of education, and auditors’ information and technology. |
