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Research Paper | Accounting | Tanzania | Volume 12 Issue 5, May 2023

Assessment of Factors Affecting Effectiveness of Internal Audit Function in Public Institutions in Tanzania; Case of Selected Public Sectors

Jilala Gabriely Maeda

Abstract: This study assessed factors affecting effectiveness of internal audit function in public institutions in Tanzania. Case of selected public sectors. The study was guided by three research objectives which were to assess the independence of auditor?s in the public sector?s, to assess the management support to the internal audit function unit in the government organization, and to examine the salient features of accounting information system in audit performance of public sectors. The study was carried out in Dar es Salaam and Lindi regions and public institutions were selected are Muhimbili University of Health and Nachingwea District Council. The study was informed by Agency theory. Through quantitative approach purposive sampling methods was used to choose the respondents of the study from the Public Institutions. The study applied descriptive and inferential statistics in the data analysis. In inferential analysis, data analysis was performed by using Model Fitness, Analysis of variance, Correlation Analysis and Multiple Linear Regression through the application of SPSS software. The study found out that independence of auditors (I) does not have a significant effect on the effectiveness of internal audit functions (? = 0.190, p = 0.623). In contrast, the results show that management support to internal audit functions (Mgt) has a significant positive effect on the effectiveness of internal audit functions (? = 0.026, p ? 0.001). This suggests that when management provides more support to the internal audit function, the effectiveness of the function tends to increase. Furthermore, the results also indicate that internal audit technology (IAT) has a positive effect on the effectiveness of internal audit functions (? = 0.195, p = 0.005). This implies that when the internal audit function uses more advanced technologies, the effectiveness of the function tends to increase. From the findings of this study, a number of recommendations were provided. The study suggests government should be ensuring defined scope of auditing, top management supports to the audit committee, promote corporate governance, adopt skilled and qualified manpower, enable properly delineated authority, maintain integrity, objectivity, professionalism independence and understand the firm?s finances and operations. Moreover, the study recommends that government should emphasize some of incentives to the government on effective usage auditing and Audit information system and packages to enhance effectiveness of undertakings of the organization performances.

Keywords: internal audit function, Public Institution

Edition: Volume 12 Issue 5, May 2023,

Pages: 2102 - 2113