Professional ethics and independence of an auditor has been considered as one of the main elementsrnfor the auditing environment and auditing professional bodies like the International Federation ofrnAccountants (IFAC,),. The main objective of this study is to examine the current status of privaternaudit firmsâ€™ professional ethics and independence and its overall impact on the quality of audit servicernprovided to the public on 20 private audit firms selected based on stratified random samplingrntechnique. The study used descriptive statistics to analyze the collected primary and secondary datarnusing SPSS. The results of the research result indicate that most of the private audit firms do notrncomply with professional ethics and lack independence from their client. This non-compliance camernfrom self-interest, self-review and familiarity threats which results from lower audit fee, poor clientrnassessment before accepting new engagements, having family, financial and personal relationshiprnwith their clients. Moreover inactive and dormant contribution of the regulatory and professionalrnassociation respectively also are other factors that contribute for unethical practice, lack ofrnindependence and lower audit quality provided by private audit firm. The study recommend privaternaudit firms should provide their professional services to the public in compliance with the rules andrnregulations stated by the regulatory bodies, Accounting and Auditing Board of Ethiopia shouldrnprepare a well-organized code of professional conduct and ethics that strictly applied by all privaternaudit, regulatory and professional bodies should set strong audit quality control, high standard auditrnpractices and enforce all audit and other constructive recommendation stated under researcher paper