Abstract:
The public sector in Tanzania, such as local government authorities (LGAs), have faced
challenges in improving their performance due to a lack of effective internal auditing. The
study aimed to examine Factors influencing the Effectiveness of Internal Audit Function
in Local government Authority in Tanzania. Specifically, study aimed to examine the
influence of management support on the effectiveness of internal audit functions, to
determine the influence of organizational independence on the effectiveness of internal
audit functions and to determine the influence of competence of internal audit staff on the
effectiveness of internal audit function. The study adopted quantitative approach,
Positivism philosophy and a case study research design. The study based in Agency
theory. The data were obtained from 34 respondents from the Mbulu Town Council
through a questionnaire. Simple random sampling was used in selecting a sample. The
collected data were analyzed descriptively and inferential analysis by using SPSS. The
results shown that organization independent have significant influence on effectiveness of
internal audit function with sig value of 0.024. The results shown that competence of
internal audit staff have significant influence on effectiveness of internal audit function
with sig value of 0.046. The results shown that management support have significant
influence on effectiveness of internal audit function with sig value of 0.034. The study
recommends that management should put more emphasis on the support received by the
internal auditors and support the internal audit by providing the department with adequate
budgetary allocations. Furthermore, the study recommends that there is need to assess the
required staffing levels for the internal audit function based on the size and complexity of
government operations, ensuring that the team is neither overextended nor understaffed.
Local government authorities should invest in continuous professional development and
training programs for internal auditors to maintain their knowledge of best practices and
regulatory requirements. Moreover, management should encourage cooperation among
employees in local government authorities as they are charged with the responsibility of
ensuring the wellbeing of the internal audit. The study implies that the management and
authority have to improve the observed areas of weakness by making proper supervision
to enhance local government authorities ' performance.
