Examining factors affecting tax audit effectiveness

Jebo Tesfaye Chebeso, Yonas Sendaba and Misraku Molla Ayalew

International Journal of Social Science, Management and Economics Research - IJSSMER, vol. 2, issue 4

Abstract: The purpose of this study was to examining factors affecting tax audit effectiveness in Gede'o Zone. Seven tax audit effectiveness determinants was examined audit communication, organizational independence, top management support, audit attributes, tax legislation system, tax audit quality and information system utilization. Explanatory research design was used to attain the study's goal, and both qualitative and quantitative research approaches were used. The study was use a survey of questionnaire analysis and interviews as source of data. Census method was used to take tax office employee of the study. Based census method 82 tax offices employees respondents were taken. Binary Logistic Regression technique was employed to analyse the responses. Data was analysed by using SPSS 20.0 version software and correlation and regression analysis was applied to achieve the study objectives. Both descriptive and inferential statistics were used to examine the acquired data. The study was frequency, percentage, mean, and standard deviation for descriptive statistics. As a result, organizational independence, top management support, and tax audit quality were statistically significant factors impacting on tax audit effectiveness. Audit communication, audit attributes, tax legislation system, and information system utilization, were elements that had a negative impact on tax audit effectiveness. Finally the study recommended, tax auditor independence of thought and appearance play a significant influence in tax audit effectiveness. And tax audit independence must be maintained in order for them to carry out their duties objectively and without intervention or pressure from outside sources. Senior management should also support tax auditors by assigning enough funding, fostering a positive working atmosphere, and adopting tax auditor suggestions.

Keywords: Financial; Economics (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ijssme:355419

DOI: 10.22004/ag.econ.355419

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