Page 56 - Azerbaijan State University of Economics

Samuel Atsibha Gebreyesus: Eterminants Of Public Sector Audit Quality: The Case Of The
Office Of The Federal Auditor General, Ethiopia (OFAG)

The principal relies on the auditor to offer an impartial, independent assessment of the

agent's performance and to report on whether the agent is following the principal's

interests in the use of resources. The Ethiopian Federal Government distributes public

funds or resources to Federal budgeting entities based on the degree and extent of
implementation of the country's strategic plan. As an agent, public institutions are
required to use resources to carry out their goals. Several aspects inherent in the
connection between the principal and its agent need the use of a third party, the office
of the general auditor, to confirm the reliability (credibility) of the performance
results, compliance, and other metrics.

Empirical Literature Review
Several topics emerge from the literature review and the history review. One of these
is the fact that there are several complementary arguments for the factors affecting
audit quality. A study by (R. Wedi Rusmawan Kusumah, 2020) titled "Analysis of the
Determinant Factor of Audit Quality in Bandung Public Accountant Offices" shows
that independence, competence, integrity, and work experience have significant
impacts on audit quality. A study was conducted under the title "Determinant of Audit
Quality: The Guardian and Justice Organizations in (Target 16.6 SDGs)" by (F
Fitriany, 2020) and the result reveals that the internal control system and audit tenure
were the two factors that had a significant impact on audit quality. A study on
determinants of audit quality in public accounting firms in Indonesia aimed to
examine and prove the effect of education, experience and audit fee on audit quality
and showed that education, experience, and audit fee are factors that influence audit
quality (Kartini, 2021).

The study, which used the Tanzanian National Audit Office as a case study to evaluate
the factors influencing audit quality in the public sector, found a strong correlation
between the ethical behavior of auditors and the audit's standard. Auditor
independence, expertise, and ethical behavior had audit greatest impact on the quality
of audits in the public sector. The research suggests putting greater effort into
enhancing the auditors' independence and moral behavior, both of which are seen to
have a significant effect on the audit quality (Sanda, 2020).

RESEARCH METHODOLOGY
The participants in this study are auditors from Ethiopia's Office of the federal Auditor
General. Data was collected using questionnaires; multiple linear regression models
were used using SPSS 23 were used; and the descriptive research method was applied
to analyze and interpretation of the variables to be studied.

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