The Contribution of Internal Audits on the Effective Procurement Assignments in Selected Local Government Authorities in Tanzania

David, Joseph Iswante (2019) The Contribution of Internal Audits on the Effective Procurement Assignments in Selected Local Government Authorities in Tanzania. ["eprint_fieldopt_thesis_type_phd" not defined] thesis, The Open University of Tanzania.

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Abstract

This study through survey was carried in Mainland Tanzania with aim of assessing the contribution of internal audits on the effective procurement assignments in local government authorities in Tanzania. Primary data was collected from a sample of 241 respondents in 27 Local Government Authorities, Public Procurement Regulatory Authorities, Internal Audit General and National Audit General using structured survey questionnaire. Multiple Linear Regression model and exploratory factor analysis were employed using STATA in analyzing data. The findings reveal that internal audit competencies, procedures and independence positively affect contribution of internal audit on procurement assignments in LGAs. This is compatible to the Agency theory as collaborated with the Stewardship which need the Agent or manager i.e. internal audit to be reputable and competent in monitoring the principal’s resources. Internal Audit Procedures on Procurement Assignments was the most influential factor in this study followed by internal audit competencies on procurement laws and independence of internal audit. The study confirms the importance of internal audit function in LGAs procurement assignments and concludes that internal audits in Local Government Authorities (LGAs) are ineffective and not contributing much on procurement assignments leading to losses as have evidenced by the Controller and Auditor General Reports. The study recommends that, internal auditors be trained on Public Procurement Act (PPA), be exposed to different audit environment, the number of auditors with different skilled should be employed. All procedures as stipulated in PPA should be known to auditors. Lastly auditors’ independence should be enhanced by providing enough resources (funds) to the internal audit function, putting away political pressure on the auditors and providing access to information.

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