Detrminant of Audit Quality in Cooprative Societies: the Case of Siltie Zone Multi-purpose Primary Cooperatives, Central Ethiopia Region
Year: 2025
Type: article
Abstract: As member-driven organizations, cooperative societies play a vital role in raising equitable economic development. However, their sustainability hinges on transparent governance and reliable audits. Despite their significance, audit quality in cooperatives remains understudied, particularly in resource-constrained. This study examines the determinants of audit quality, focusing on auditor independence, competence, member participation, salary and benefits, and regulatory frameworks in cooperative societies on multipurpose primary cooperatives, in Siltie Zone. The study aims to identify significant factors influencing audit quality in cooperatives, and determine the relative impact of each determinant. The study applied explanatory research design and distributed structured questionnaires to a sample of 147 respondents which consists of 41 external auditors, 53 managers, and 53 audit committee members across 53 multipurpose cooperatives. The study collected primary data from 136 respondents. Data were gathered employing a 5-point Likert scale to assess perceptions regarding audit quality and its contributing factors, then subjected to analysis through descriptive statistics, correlation, and multiple regressions analyses using SPSS v.21. The result of the regression analysis indicated a positive and significant impact of members’ participation, independence of auditors, competence of auditors, and salary and other benefits of auditors on the audit quality in multipurpose primary cooperatives, in Siltie Zone. These independent variables jointly explained 74 % of the variability in audit quality in multipurpose primary cooperatives, in Siltie Zone. Considering the finding of the study, it is recommended that cooperatives administration body should adopt mandatory auditor rotation and disclosure of conflict-of-interest to safeguard auditors’ independence; investing on auditor’s competence enhancement training programs is also worth considering.
DOI: 10.20372/nadre:8865
Author: AMAN WABELLA
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W6944686281
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