Effect Of Audit Committee Attributes On Internal Control Over Financial Reporting Perception Of External Auditors In Addis Ababa

Audit committee plays an important role improving internal control and also increasernfinancial reporting quality and this will boost confidence of interestedparties. The main objectivernof this study was to assess the attributes of audit committee as per perception the experiencedrnexternal auditors in Ethiopia. The study adopted a mixed research approach. The quantitativerncomponent used survey of employees working in 15Audit firms in Ethiopia. Random sample ofrn150 Auditors were covered by the survey; the response rate was 86%. Survey data was collectedrnby use of a structured questionnaire. Multiple regression models were used to test whether Auditrncommittee size, independency, expertise, diligence, and tenure have any relation with internalrncontrol over financial reporting. As part of the qualitative component interviews with Auditrnmanagers and partners were held. And The collected data was analyzed multiple linearrnregression analysis and It was found that attributes of audit committee had a significantrnrelationship with internal control over financial reporting. The findings of the study suggestedrnthat Audit committee attributes especiallyIndependency, financial expertise and diligences arernimportant areas that can have great impact to improve internal control over financial reportingrnand based on this corporate governance which have audit committee needs to have at leastrnfinancially expert, independent, and diligent to achieve the intended objectives.

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