This paper provides some evidences how the government benefited from the externalrnauditors effectiveness on tax collection by minimizing the loopholes which exposedrnfor tax avoidance, evasion and shelter. Research data collected from the populationrnauditing firms based in Addis Ababa and sample were taken from twenty firmsrnbased on their size and number of employees. 100 questionnaires were distributedrnto external auditors titled senior and above constructed by 5 point likert scale. 82rnresponses are obtained from the respondents and summarized by using excel spreadrnsheet before processed by STATA software to have descriptive and regressionrnanalysis quantified results. The qualitative data from interview was used torntriangulate the respondents result from Stata. Eight hypotheses was proposed andrnchecked as a result competence, independence, regulatory body and tax audit havernsignificant effect and strong relation with the effectiveness of external auditorsrnperformance on tax collection in comparing with audit firm size, audit fee and auditrntenure. In contrary awareness of tax by the external auditors inversely related. Thernstudy recommended the governing body should work in co-operation with AABE,rnfinance professional association and individuals, there must be a comprehensiverntax manual used as a reference, a controlling mechanism should be set for externalrnaudit professionals, the training and education department must be well arrangedrnand structured to provide support, AABE should to revise audit firm certificationrncriteria to increase the number of external audit firms and at last tax audit by therntax authority preferably should be done as soon as tax report delivered by the taxrnpayers.