FACTORS AFFECTING QUALITY OF FINANCIAL REPORTING IN MOSHI MUNICIPALITY COUNCIL

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