Internal factors affecting the effectiveness of internal audit functions in Tanzania public sector: a case of selected ministries, independent departments and agencies
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Date
2023
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Publisher
The University of Dodoma
Abstract
This study examined the internal factors affecting the effectiveness of internal audit functions in selected Tanzanian public entities. The study had three specific objectives, which were to examine the influence of internal audit independence on the effectiveness of the internal audit function. To find out the influence of staff competence on the effectiveness of the internal audit function in the public sector and the influence of allocated resources on the effectiveness of the internal function in the Tanzanian public sector. The theoretical framework of the study was based on three theories: institutional theory, Agency theory, and Stakeholder theory. The study adopted a cross-sectional research design by using a quantitative approach. Data were collected from a sample of 97 respondents from the selected public entities. By using the statistical package for social science (SPSS), Multiple linear regression was applied to analyze quantitative data collected from accountants and auditors. The findings show that the effectiveness of internal audit functions is statistically positively influenced by the existence of internal audit personnel who are functionally independent (p-value = 0.004) and competent in their day-to-day activities (p-value = 0.000). Furthermore, the allocation of required resources to the internal audit unit has significant effects on the effectiveness of internal audit functions (p-value = 0.011). Therefore, the study concludes that internal audit independence, staff competence, and the allocation of resources all have a positive and significant impact on the internal audit function. This study recommends that to improve the effect of internal audit functions, public institutions should take into account the role played by independence, competence, and resource allocation in internal audit functions. This will assist in understanding internal factors explaining internal audit effectiveness as well as helping public entities achieve their planned objectives. Further studies are recommended to consider collecting primary data from key internal audit stakeholders such as audit committee members, accounting officers, chief accountants, and external audit engagement partners.
Description
Dissertation (Master of business administration)
Keywords
Internal audit, Tanzania public sector, Ministries, Independent departments, Agencies
Citation
Joseph, P. (2023). Internal factors affecting the effectiveness of internal audit functions in Tanzania public sector: a case of selected ministries, independent departments and agencies (Master dissertation). The University of Dodoma.