Abstract:
The study was conducted in University of Dar es Salaam. The target of the study will be to assess
the Perceptions of Internal Auditors on the Application of Risk Based Internal Audit Approach in
Higher Learning Institutions in Tanzania. Specifically, the study intended to determine the perceived
awareness of Internal Auditors (IA) on application of RBA Approach, examine the perceived effect
of RBA Approach and find out the perceived challenges that affect the Internal Auditors on applying
the RBA approach.
The research design that used in this study is both cross sectional and descriptive survey method
(mixed methods) which aimed at establishing the determinants of perceptions of internal auditors
on the application of risk based internal audit approach. The primary and secondary data were
collected in this study. The questionnaire, interview and document review were the methods which
used to collect data in this study. The population who involved in this study was from University of
Dar es Salaam especially the employees from different departments. So, the data that collected
from the sample size of 79 employees respondents were analysed through SPSS computer
program.
Findings showed that Risk based audit enhances transparency, accountability and responsiveness
to public expenditure policy priorities and it virtually covered all aspects of public financial
management. Perception on the role of internal audit function was seen to affect the adoption of
RBA to a great extent. Training was found to be essential since it affects the adoption of risk based
audit greatly. Training ensures RBA approach is adopted with of ease, instills knowledge to staffs
and training leads to efficiency and accuracy in reporting and auditing.
Top management had a great role to play as they had to ensure that resources were available for
the internal audit function. Solution of application of RBA lies in increase in the level of the
auditor’s independence and responsibilities with punitive measures with a view to reduce
corporate reporting scandals thereby paving the way for increased audit quality and hence reduce
the audit expectation gap by users of audit reports.
