Table 2 EFA and reliability analysis...

Table 2

EFA and reliability analysis results for individual items of factors

	Statements	Factors				Communalities
	Statements	F1	F2	F3	F4	Communalities
	Independent variables items (n = 28)
I1	A sufficient budgetary allocation is made for tax audit	0.715				0.698
I2	Top management gives high attention to the audit report	0.663				0.754
I3	Top management inspires professional education and assists with the training of tax audit staff	0.505				0.568
I4	Serious attention is paid by management to the development of tax audit personnel in the audit profession					0.632
I5	The organization's structure allows staff to adapt to new changes quickly					0.579
I6	The leadership structure of the tax audit unit from top to bottom is transparent and smoothens the flow of instructions	0.725				0.789
I7	Transparency exists in the distribution of new policies to perform tax audits to tax auditors	0.655				0.712
I8	Quality and systematic management procedures exist to aid tax audit execution that is adhered to by all staff	0.601				0.698
I9	Tax auditors have the educational and professional competence to carry out audits		0.771			0.816
I10	The tax audit unit has an apparent division of labour		0.681			0.731
I11	Adequate audit manuals exist to aid the execution of tax audits professionally		0.559			0.680
I12	The audit management team is strong and is led by an independent manager		0.637			0.798
I13	The tax audit unit has complete independence to execute its duties		0.594			0.701
I14	The audit unit has policies and procedures in place to comply with quality standards		0.621			0.827
I15	There is a Commissioner/other people with adequate experience and authority to ensure tax audit effectiveness and monitor quality standards compliance		0.689			0.783
I16	The Tax Audit office has a readily accessible technical library containing manuals, tax laws and regulations or computerized versions		0.669			0.787
I17	The taxpayers' attitude to tax audits is good			0.616		0.591
I18	Taxpayers prepare their reports in line with the requirements of the tax laws			0.682		0.694
I19	Taxpayers provide quick responses to queries from tax audits			0.568		0.591
I20	Taxpayers cooperate with tax auditors during tax audit reviews			0.552		0.741
I21	The tax auditees show high satisfaction with the tax activities of the tax audit			0.676		0.746
I22	Tax authorities select taxpayers for audit based on three approaches: Scheduled approach, Targeted/Issue based approach and Risk-based approach			0.598		0.682
I23	Modern-day tax audits are geared toward the risk-based approach to ensure resources are efficiently allocated to achieve optimal results			0.639		0.811
I24	Tax audits are sanctioned by Section 36 of the Revenue Administration Act, 2016 (Act 915), as amended				0.635	0.756
I25	Tax audits are intended to: Confirm if taxpayers have paid their fair share of tax; promote voluntary tax compliance among taxpayers; deter non-compliance among taxpayers and others				0.789	0.731
I26	There is an existing legal requirement to keep records by taxpayers that is indispensable				0.627	0.583
I27	Tax audit has been conducted by adhering to the provisions of tax law and regulations in Ghana				0.576	0.604
I28	An audit may be conducted under more than one law (that is, the audit may cover multiple laws – VAT Act, Income Tax Act, Excise Act, Revenue Administration Act and Relevant Regulations at once)				0.617	0.688
	Eigenvalue	6.851	2.241	1.634	1.478	12.204
	% of variance	24.073	16.64	10.21	13.05	63.969
	Cronbach's alpha	0.792	0.849	0.715	0.763	0.781
	No. of items	6	8	7	5
	KMO = 0.741; χ² = 311.312; p-value = 0.000
	Dependent variables items (n = 7)
I29	Transparent tax audit procedures exist that reduce the extent of complaints from taxpayers					0.804
I30	Tax audits have achieved the following: promoted voluntary tax compliance among taxpayers; deterred non-compliance among taxpayers					0.742
I31	Tax audit findings are properly documented					0.641
I32	The number of tax defaulters has been going down with improved tax audits					0.657
I33	The tax audit reports are clear and well-presented					0.780
I34	The audit unit has policies and procedures to comply with quality standards					0.763
I35	There is a Commissioner/other people with adequate experience and authority to check the effectiveness of the quality systems in place and compliance with the quality standards					0.843
	Eigenvalue					10.179
	% of Variance					54.259
	Cronbach Alpha					0.935

	Statements	Factors				Communalities
	Statements	F1	F2	F3	F4	Communalities
	Independent variables items (n = 28)
I1	A sufficient budgetary allocation is made for tax audit	0.715				0.698
I2	Top management gives high attention to the audit report	0.663				0.754
I3	Top management inspires professional education and assists with the training of tax audit staff	0.505				0.568
I4	Serious attention is paid by management to the development of tax audit personnel in the audit profession					0.632
I5	The organization's structure allows staff to adapt to new changes quickly					0.579
I6	The leadership structure of the tax audit unit from top to bottom is transparent and smoothens the flow of instructions	0.725				0.789
I7	Transparency exists in the distribution of new policies to perform tax audits to tax auditors	0.655				0.712
I8	Quality and systematic management procedures exist to aid tax audit execution that is adhered to by all staff	0.601				0.698
I9	Tax auditors have the educational and professional competence to carry out audits		0.771			0.816
I10	The tax audit unit has an apparent division of labour		0.681			0.731
I11	Adequate audit manuals exist to aid the execution of tax audits professionally		0.559			0.680
I12	The audit management team is strong and is led by an independent manager		0.637			0.798
I13	The tax audit unit has complete independence to execute its duties		0.594			0.701
I14	The audit unit has policies and procedures in place to comply with quality standards		0.621			0.827
I15	There is a Commissioner/other people with adequate experience and authority to ensure tax audit effectiveness and monitor quality standards compliance		0.689			0.783
I16	The Tax Audit office has a readily accessible technical library containing manuals, tax laws and regulations or computerized versions		0.669			0.787
I17	The taxpayers' attitude to tax audits is good			0.616		0.591
I18	Taxpayers prepare their reports in line with the requirements of the tax laws			0.682		0.694
I19	Taxpayers provide quick responses to queries from tax audits			0.568		0.591
I20	Taxpayers cooperate with tax auditors during tax audit reviews			0.552		0.741
I21	The tax auditees show high satisfaction with the tax activities of the tax audit			0.676		0.746
I22	Tax authorities select taxpayers for audit based on three approaches: Scheduled approach, Targeted/Issue based approach and Risk-based approach			0.598		0.682
I23	Modern-day tax audits are geared toward the risk-based approach to ensure resources are efficiently allocated to achieve optimal results			0.639		0.811
I24	Tax audits are sanctioned by Section 36 of the Revenue Administration Act, 2016 (Act 915), as amended				0.635	0.756
I25	Tax audits are intended to: Confirm if taxpayers have paid their fair share of tax; promote voluntary tax compliance among taxpayers; deter non-compliance among taxpayers and others				0.789	0.731
I26	There is an existing legal requirement to keep records by taxpayers that is indispensable				0.627	0.583
I27	Tax audit has been conducted by adhering to the provisions of tax law and regulations in Ghana				0.576	0.604
I28	An audit may be conducted under more than one law (that is, the audit may cover multiple laws – VAT Act, Income Tax Act, Excise Act, Revenue Administration Act and Relevant Regulations at once)				0.617	0.688
	Eigenvalue	6.851	2.241	1.634	1.478	12.204
	% of variance	24.073	16.64	10.21	13.05	63.969
	Cronbach's alpha	0.792	0.849	0.715	0.763	0.781
	No. of items	6	8	7	5
	KMO = 0.741; χ² = 311.312; p-value = 0.000
	Dependent variables items (n = 7)
I29	Transparent tax audit procedures exist that reduce the extent of complaints from taxpayers					0.804
I30	Tax audits have achieved the following: promoted voluntary tax compliance among taxpayers; deterred non-compliance among taxpayers					0.742
I31	Tax audit findings are properly documented					0.641
I32	The number of tax defaulters has been going down with improved tax audits					0.657
I33	The tax audit reports are clear and well-presented					0.780
I34	The audit unit has policies and procedures to comply with quality standards					0.763
I35	There is a Commissioner/other people with adequate experience and authority to check the effectiveness of the quality systems in place and compliance with the quality standards					0.843
	Eigenvalue					10.179
	% of Variance					54.259
	Cronbach Alpha					0.935

Note(s): KMO = 0.572; χ² = 107.352; p-value = 0.000

F1 is organizational and management factors; F2 is tax auditor factors; F3 is taxpayer/auditee factors; F4 is regulatory factors

Source(s): Author's Survey, 2025

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