This study was conducted on mandatory audit firm rotation and its effect on auditorrnindependence in Ethiopia as the perception on external auditors. Factors affecting thernability of auditors to remain independent include long audit tenure, financial dependencernon a single audit client, non-audit services provided to audit clients and ex-auditorrnemployment with an audit client. It is therefore timely to examine the importance of auditorrnindependence in the provision of reliable and credible financial information. The studyrnused 5 point likert scale questionnaire and simple random sampling techniques were givenrnto a sample of 84 external auditors who are found at different level and to examine auditors'rnperceptions of the effect of mandatory audit firm rotation on auditor independence. Thernresults of the study revealed that 80.3% of auditors agreed that MAFR could safeguardrnauditor independence. The results also reveal that there is a significant relationship betweenrnmandatory audit firm rotation and auditor independence. Analyses of variance (ANOVA)rnwere also conducted to test for the possibility of confounding effects arising fromrnparticipants' background and experience. None of these variables were found to have arnconfounding effect on the experimental results. The results also disclose that the adoptionrnof rotation rules wasn't given enough attention among the auditing firms in Ethiopia.rnFurther research should be considered regarding other possible recommendations forrnenhancing the independence of auditors. Some examples include, appointment of companyrnauditors by the state or an independent oversight body, and introduce a governmentrnapproved body to verify the auditorsâ€™ work year after year to ensure they are carrying outrntheir duties to their full capability.rnKeywords: Mandatory audit firm rotation (MAFR), Auditor Independence, Accounting andrnAuditing Board of Ethiopia (AABE)