Page 61 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.79, # 2, 2022, pp. 51-63

The result reveals that auditor independence has a significant and positive impact on
audit quality (β=.055, t=2.107, P=.040). As a result, H3 was supportive. H4 evaluates
whether audit legal frameworks significantly and positively affect audit quality.
According to the findings, audit legal frameworks have a significant and positive
impact on audit quality (β =.282, t=3.573, P =.000). Therefore, H3 was also supported.
H5 evaluates whether government support significantly and positively affects audit
quality. The result shows that government support has a positive but insignificant
impact on audit quality (β=.010, t=.150, P=.881). Therefore, H5 was not supported.

CONCLUSION
The result of the analysis shows that all independent factors auditor competence,
organizational independence, auditor independence, and audit legal frameworks had
positive and significant impacts on audit quality, supporting the hypothesis. While
Government support has positive but insignificant effects on audit quality. Technical
audit and accounting skills, critical thinking, interpersonal skills, and communication
skills are the requirements of a competent auditor. The fundamental aspects of
generally accepted auditing standards are organizational independence and audit
independence. These two factors have a positive and significant impact on audit
quality. Audit legal frameworks are the other important area in public sector audits
that must be addressed to enhance audit quality. This factor has a positive and
significant impact on the audit quality. The government is responsible for supporting
public sector audits to improve good governance in the public sector. This factor had
a positive but insignificant impact on audit quality.

RECOMMENDATION
According to the study's findings, the following recommendations are made:
➢ The OFAG of Ethiopia should be staffed and led by professionals, and
government intervention must be minimal.
➢ The office should arrange continuous educational and training programs on
technical, critical thinking, interpersonal, and communication skills to upgrade
auditors’ knowledge and skills.
➢ The government should work to ensure organizational and auditor
independence to improve audit quality in public sectors so that public funds
are allocated for the intended purposes.
➢ Audit legal frameworks should be reviewed and amended regularly to improve
audit quality in public sectors and achieve good governance.

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