Abstract:
The study aims to assess the factors affecting the effectiveness of internal audit functions in
Tanzania's public sector, specifically within the Tanzania Rural and Urban Agency (TARURA). A
systematic literature review was conducted to assess the factors that influence internal audit
function effectiveness, relevant studies of the period 2014 to 2022 were reviewed, assessment
focused on the key factors of internal audit effectiveness. Moreover, the study reviewed what is
expressed in the International Professional Practices Framework for Internal Auditing
(IPPF).Internal audit effectiveness factors which are internal audit independence, internal audit
proficiency, internal audit charter and management support and their dimensions/indicators were
selected and comprised into conceptual model. A cross-sectional research design was employed,
incorporating a mixed-methods approach. Data were collection by means of mail, 114
questionnaires were sent to internal auditors, regional and district managers of all TARURA offices
of which 87 responses to the questionnaire were received. Analysis of data was done by using
descriptive statistics and multiple linear regressions. Key findings suggest that internal audit
independence is critical for unbiased auditing, proficiency of audit personnel directly impacts audit
effectiveness, and the internal audit charter needs clear articulation for its effective implementation
while management support also plays a vital role in the function's effectiveness, indicating a need
for consistent management engagement. The study provides internal audit practitioners, audit
committees, and senior management in organizations with a broad understanding and
comprehensive overview of the key factors that should be considered to make their internal audit
functions more effective. In conclusion, the effectiveness of internal audit functions in Tanzania's
public sector is significantly influenced by factors such as independence, proficiency, charter clarity,
and management support. The study recommended reinforcing auditor independence, bolstering
auditor proficiency, enhancing the internal audit charter, and amplifying management support.
Further research is suggested in sector-specific internal audit challenges, the role of technology in
audit functions, and the cultural factors influencing internal audit perceptions.
