ABSTRACT
This paper examined the determining factors affecting public sector audit quality. Primary and secondary data were used for the study. The primary data for the study were collected from the Office of federal auditor general, Ethiopia using structured questionnaires. Secondary data were gathered from various electronic source literatures. Audit quality depends on the competence of the auditors, the independence of the organization and the auditors, the legal frameworks, and government support. The instrument of analysis was the regression model between the variables Durbin-Watson and VIF Test for autocorrelation and multicollinearity. The findings showed that the dependent variable, audit quality, has a positive and significant relationship with the predictors’ auditors’ competence, organizational and auditors’ independence, and the audit legal frameworks. However, government support has a positive and insignificant relationship with the dependent variable. The beta coefficient is highly positive for auditor competence and organizational and auditor independence and the audit legal frameworks imply that these factors affect audit quality in the public sector. Consistent with the above findings, the researcher recommended that the government should strengthen the audit institution to ensure accountability and transparency in public sectors.

Key Words: audit, competence, independence, determinants, regression

Jel classification: M42