FACTORS INFLUENCING THE EFFECTIVENESS OF INTERNAL AUDIT FUNCTION IN LOCAL GOVERNMENT AUTHORITY IN TANZANIA

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.