A Research Report Submitted to the School of Business in Partial/Fulfillment of the Requirements for the Award of the Bachelor Degree in Accounting and Finance – Business Sector (BAF BS) of Mzumbe University
This study is based on the assessment of factors affecting auditor’s independence the case study was conducted at KPMG, Tanzania. In achieving the general goal, four specific objectives were designed by the researcher during the study. These includes to assess the impact of client affiliation with audit firm on the auditor independence, to assess the impact of client importance on the auditor independence, to assess the impact of Audit tenure on the auditor independence, to assess the impact of non- audit services on the auditor independence.
The sample size of 50 respondents’ consisting of auditors from Audit department was selected. Data collection methods which were used in this study were questionnaires, and documentary review. 50 copies of questionnaires were sent to the respondents, and all distributed to auditors at KPMG Tanzania. Quantitative methods were used in data analysis of the study. Findings of the study reveal that Client affiliation, Audit tenure, client importance and provision of non-audit services affect auditor’s independence and the study suggested effective ways were on which auditor’s independence can be practiced so as to maintain auditor’s independence. Finally, the researcher suggested some areas of study which include, whether there is knowledge transfer between Non-Audit and audit services when jointly provided, whether auditors independence can be monitored through specialized way and to examine direct effects of mandatory audit rotation.