Abstract:
The purpose of this study is to investigate factors affecting tax audit effectiveness in Amhara
region tax auditors. The study aims to examine the statistical significance between factors and
tax audit effectiveness. The study adopted quantitative method of research to test a series
research hypothesis. Specifically, the study used survey of questionnaire of revenue authority tax
auditors’ response. Simple random sampling technique was employed based on nature of the
target population. Then, tax auditors were selected based on simple random sampling and
lottery method respectively. Consequently, the study selected a sample of 79 with the total of
162 target population. Data was then analyzed on quantitative basis using Pearson's correlation,
multiple regression analysis and descriptive statistics. Based on the findings of the analysis is
strongly significant positive relationship among Organizational setting, top management
support, auditee attribute, organizational independence and tax audit effectiveness. Hence
auditee attribute, organizational independence, organizational setting, and top management
support play significant role on the improvement of tax audit effectiveness, Amhara National
Regional State Revenue Authority should be focused on that predictor.