AUDIT COMMITTEES EFFECTIVENESS ON FINANCIAL FRAUD DETECTION

Abstract

This study evaluates the effectiveness of audit committees in detecting financial fraud within the Tanzania Rural and Urban Roads Agency (TARURA). With the increasing prevalence of financial fraud in public institutions, effective oversight mechanisms are paramount to ensure accountability and transparency. The research employed a mixed-methods approach, utilizing both quantitative surveys and qualitative interviews to gather data from audit committee members and relevant stakeholders within TARURA. Key findings indicate that the expertise of audit committee members significantly influences their ability to detect financial irregularities, while effective oversight of financial activities is crucial in mitigating fraud risks. Furthermore, the study highlights the proactive role of audit committees in preventing fraud through robust internal controls and regular audits. By comparing the results with previous studies on audit committee effectiveness, the research underscores the necessity for continuous training and capacity building for audit committee members to enhance their competencies. The study concludes with recommendations aimed at strengthening the audit committee's role in fraud detection and promoting good governance practices within TARURA. These findings contribute to the broader discourse on financial governance and accountability in public institutions in Tanzania.