Abstract:
This study aimed to evaluate the effects of internal auditing on management
performance focusing on the Tanzania Revenue Authority in the Arusha region.
Specific objectives of this study were to examine the effect of compliance audits,
fraud detection and risk management on the management performance of the
Tanzania Revenue Authority. Control theory was adopted in this study. This study
adopted a positivism research philosophy, using a quantitative approach within a
descriptive research design. The sample of 141 was selected using a simple random
sampling technique for participant selection. Data collection consists of primary data
via a structured questionnaire and secondary data from documentary reviews.
Analysis involves quantitative methods, using SPSS for descriptive statistics and
inferential statistics (correlation and regression analysis). The study unveiled that
compliance audits are conducted regularly within the organization, and the findings
from these audits are deemed actionable, leading to tangible improvements. The
study unveiled that, the clarity of procedures for investigating fraud alerts and the
regular updating of fraud detection measures were less emphasized. Also, the study
showed that regular assessment and prioritization of organizational risks were
highlighted, along with effective implementation and monitoring of risk mitigation
strategies. The study found strong positive correlations between compliance audits
and fraud detection with management performance, while risk management showed a
moderate positive correlation, all statistically significant. The Tanzania Revenue
Authority should enhance the frequency and scope of compliance audits to ensure
thorough oversight of regulatory adherence. Strengthening fraud detection through
advanced technologies and training is also essential, particularly with automated
systems to quickly identify suspicious activities. Additionally, TRA needs an
integrated risk management framework that aligns with its strategic objectives,
including regular risk assessments to prioritize potential threats. Future research
should explore how external factors, such as regulatory changes and technological
advancements, impact internal auditing effectiveness, offering insights for public
institutions to improve compliance and operational efficiency
