| Abstract: | The purpose of this study is to assess the effect of tax audit practice on revenue collection in
Eastern Addis Ababa small tax payers branch office. The study stands to answer how audit
quality, management support, organizational independence, auditee attributes and
organizational setting affect tax audit effectiveness; and in turn how effective tax audit can affect
revenue collection in Eastern Addis Ababa small taxpayers branch office. In light of this
objective the study adopted quantitative method of research approaches to test a research
hypothesis. Purposive sampling was employed based on the situations where the researcher
reaches the targeted population quickly. The study used a structured questionnaire for the
collection of data from tax auditors. The collected data were analyzed using descriptive statistics
and multiple regression analysis. The study used two models for analysis; the first model is that
tax audit effectiveness the dependent variable is explained by audit quality, top management
support, organizational setting, auditee attributes, and organizational independence. The second
model is that revenue the dependent variable explained by independent variable effective tax
audit. The result showed that there is no statistical significant positive relationship between top
management support, organizational independence and tax audit effectiveness. Besides, the
results indicated that there is no statistical significant negative relationship among
organizational setting and tax audit effectiveness. The researcher found that there is strongly
significant positive relationship among audit quality, audit attributes and tax audit effectiveness.
There is also strongly significant positive relationship between tax audit effectiveness and
revenue. |
