An Empirical Analysis on Effects of Internal Control System on Tax Revenue Audit Performance; Evidence from Ethiopian Ministry of Revenue South and Southwestern Districts

This study analysis the effects of internal control system on Tax revenue audit performance in Ministry of Revenue South and southwestern districts under explanatory research design. The study employed primary data sources and analyzed it using a multiple regression analysis on SATA ۱۴ software. The regression analysis results exhibited that control activities, control environment and information and communication components were significantly affecting tax revenue audit performances of Southern and south western regions of ministry of revenue main offices in Ethiopia. Based on the findings of this study, the researchers recommended that it is better if Ethiopian ministry of revenue strengthen its control activities in strategic manner because good control activities easily responds to the dynamic situation with the full potential and prevent frauds & misappropriations of public assets. Moreover, organizational structures need to be integrated and coordinated by establishing effective information and communication dissemination systems because tax auditors need relevant, timely and persuasive evidences that really reflects the fairness of the organizations’ position and promotes reporting reliable financial reporting.

Keywords:

Audit performance , Internal Control System , Multiple Regression , Tax Revenue , and Ethiopia