Analysis of Perceived Factors Affecting the Performance of Auditors in Fraud Detection

Abstract

Investigating the factors affecting the performance of private auditors in detecting frauds in Addis Ababa City Administration necessitates a multifaceted analysis encompassing legal and professional standards, auditor proficiency, organizational environment, audit methodologies, and contextual considerations specific to Addis Ababa’s business landscape. The objective of this study was to investigate the Analysis of Perceived Factors Affecting the Performance of Auditors in Fraud Detection: A Case in Addis Ababa City Administration. A cross-sectional study design was used. The study population was (N = 169), and the sample was (n = 118) private auditors. The study includes variables such as experience, constraints, audit fee size, independence, extent of fraud, and performance. The data collection tools include standardized questionnaires and semi-structured. SPSS Version 26 was used to run the quantitative data. A multiple regression model was used to analyze factors affecting the performance of private auditors. Qualitative analysis was made to supplement the quantitative response. The result of the study has a significant model, F (5, 0.76) = 27.7, p = 0.00, R2 = 0.46. Predictor constraints (t = 3.0, p = 0.03), independency (t = 2.69, p = 0.008), and extent of fraud (t = 6.56, p = 0.000) significantly predict the performance of private auditors in Addis Ababa City Administration. The study concluded that constraints, independence, and extent of fraud had a relationship and impacted the performance of private auditors in the Addis Ababa City Administration. The study recommends that private auditors reduce various constraints of auditors and enhance the independence and extent of their fraud detection.