Theses and Dissertations
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Item Effects Of Auditor Tenure On Audit Quality: Case Study Of Listed Banks In Nairobi Security Exchange(KCA University, 2013) Mriwa, Salim J.Large and small companies are collapsing even after an auditor has issued unqualified opinion. With the collapsing of these firms there is a decline in the trust from the public on the audited reports issued by an auditor. The decline comes from the experience that many companies have collapsed and their financial statements were audited by an independent auditor giving a qualified opinion on audit report. The issuance of unqualified opinion is suspected to be because of a long term relationship between the auditor and the client. Therefore audit tenure is suspected to have an effect on the quality of audit. The objectives of the study were to determined the effects of auditor independence on quality, the effectiveness of human capital on quality when the auditor audit the same client over time and finally to identify the measures to be in place in order to avoid auditor being compromised when auditing the same client. Purposive sampling technique was employed to identify the respondent. Questionnaire was used for collecting data, descriptive statistics was used in the analysis and multiple regression model to find out the relationship between the dependent and independent variables. The research study established the effects of audit tenure on audit quality where the research found out that there is a positive relationship between effectiveness of human capital and audit quality and a negative relationship between auditor independence and human capital.Item Internal Factors Influencing External Auditors Independence Among Practicing Accountants In Kenya(KCA University, 2017) Omondi, Harrison M.Auditor independence holds sway in ensuring that the public has confidence in financial reporting. The general setting within which audit decisions made and audit independence formed is evolving rapidly due to competitive and regulatory changes. Policy makers must work continuously to evaluate the critical threat factors and develop appropriate independence principles. This study sought to establish the determinants of auditors’ independence in Kenya. Four research aims guided the study: to determine the influence of economic factors on auditors’ independence in Kenya: to establish the impact of regulatory factors on auditors’ independence in Kenya; to establish the effect of firm factors on auditors’ independence in Kenya and to establish the challenges faced in establishing auditors’ independence in Kenya. The study employed a cross-sectional descriptive study with a sample size of 214 audit firms and the target population in the study were practising accountants in Kenya. Primary data was collected using a semi-structured questionnaire and the data analysed through statistical software (SPPS) versions 22 through ordinal regression analysis to present the findings. The study established that internal factors influence auditor independence by 31.7%. From the results of the research, it also revealed that there is a significant relationship between audit tenure, audit firm size and audit independence. This was indicated with a p-value of 0.029 and 0.009. The study also established that there is no significant relationship between audit committee and audit independence with a p-value of 0.465. The study concludes that audit tenure and firm size affect audit independence and thereby the study recommends the need for ICPAK to develop a policy that will guide audit tenure and audit committee.