Factors Affecting Tax Audit Effectiveness in East Gojjam Zone Revenue Office in Ethiopia

The purpose of this study was to determine factors affecting tax audit effectiveness using statistical analysis; both qualitative and quantitative approach (use mixed method). The population of the study includes the entire set of all tax auditors and process owners operated in the East Gojjam Zone Revenue Office. Accordingly, the target population for the study would be 14 tax auditors and 20 process owners of revenue office. The researcher use census method to select respondents form revenue office. A total of 34 copies of questionnaire were distributed to tax auditors and process owners of revenue office and in-depth interviews with tax official were conducted. In addition, secondary data was used and investigated, mainly to show the trend of the last five years from 2002/03 up to2006/07(Ethiopian Calendar). The data was analyzed on qualitative research approach to explore attitudes, behaviors and experiences through methods such as in-depth interview and quantitative basis using Pearson’s correlation, linear regression analysis and descriptive statistics. And the finding of this study show the effects of Audi tee Attribute, Organizational Setting, Top management support, Organizational independence, and Audit Quality with tax audit effectiveness on the revenue office. According to the regression output from the total five independent variables, all independent variables except organizational setting are positively correlated and positive contribution with tax audit effectiveness in the revenue office. Organizational setting has a negative influence on tax audit effectiveness. All of these five independent variables are making 81% of the contributions for tax audit effectiveness in the revenue offices