ASSESSING EFFECTIVENESS OF INTERNAL AUDIT IN LOCAL GOVERNMANE AUTHORITY PERFORMANCE

Abstract

Internal audit is an independent and objective functional activity which provides security and management advice with the aim of ensuring effective management of public income and expenditure. This research aims to assess the effectiveness of internal audit in Local Government authority performance at Arusha City Council. Study used descriptive research design and mixed approach. A total sample size of 51 respondents were used. Study used Simple random sampling technique. Reliability was tested by using Cronbach alpha test while validity was tested by using KMO test. Questionnaire were used to collect information. Data analysis was done by using descriptive statistics. The internal auditors possess the appropriate professional skills, qualifications and experience and participate in continuing professional development. To some extent, quality audit work is undertaken by the internal auditing departments. The internal auditors adhere to auditing code of ethics, and comply with the international auditing standards. The quality of audit work has a significant positive effect on internal auditing effectiveness. Moreover, to a large extent, we conclude that internal auditors in the local districts possess organizational independence. They have the authority to audit all segments auditors ends of the district assemblies. Intern have career advancement opportunities. However, the management do not support internal auditors in the sense that, management do not provide internal audit unit with the encouragement expected and usually assign small budget to the units. The study also implies that local government authorities should ensure good perception of internal audit as internal auditing unit determines the scope of auditing. Recommendations were therefore made basing on the basis of key issues, particularly those negatively impacted performance of local government. Conclusion. the study also implies that local government authorities should ensure good perception of internal audit as internal auditing unit determines the scope of auditing