To Assess Factors Associated with Internal Audit Function Effectiveness in The Tanzania Public Sector

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.