Abstract:
The study was carried out to assess the factors affecting quality of financial reporting of LGAs
financial statements in Moshi Municipality Council. More specifically, this study ascertained how
internal audit affect quality of financial reporting in Local Government Authorities in Tanzania,
evaluated how follow up audit recommendations affect quality of financial reporting in Local
Government Authorities in Tanzania and how political competition affect quality of financial
reporting in Local Government Authorities in Tanzania. This study used quantitative approach
and descriptive research design was used as research design. The type of data collected was
primary data and the collection tool was a self-administered questionnaire given to selected
sample respondents from Moshi Municipality Council - Kilimanjaro. Data was analysed and
presented in tables and figures with the help of descriptive and inferential statistics under SPSS.
The findings revealed that Internal Audit has significant relationship with Financial Reporting
Quality. Findings showed that follow up Audit Recommendations has a significant relationship
with Financial Reporting Quality. the study unveiled that Political Competition has a significant
relationship Financial Reporting Quality. The study recommends that in Local Government
Authorities in Tanzania should prominently focus on strengthening internal audit and embrace
follow up on audit recommendations for better financial disclosures, accountability, and
transparency in financial reporting of Local Government Authorities in Tanzania
