A Research Report Submitted in Partial Fulfillment of the Requirements for
Award of the Degree of Master of Science in Accounting and Finance of Mzumbe
University
The motive of this study was to evaluate the impact of internal audit efficiency in
improving financial management effectiveness in public sector, specifically just after
establishment of the Internal audit General Division (IAGD).
Fifty-eight responses from six district councils at shinyanga region were gathered using
questionnaires, interviews and documentations and they were analysed using descriptive
analysis, simple and multiple regression from excel and SPSS software programmes.
The findings revealed that there was inefficiency of internal audit units that is two out of
six councils had efficiency while the rest were not efficient. In addition, it found that two
out of six councils had better in financial management. Moreover, there a positive was
relationship between internal audit efficiency and financial management effectiveness in
Shinyanga LGAs. It seems to be strong with positive correlation of about 87.3%. Results
also revealed that there were many factors that hindered financial management
effectiveness these included: poor leadership in finance department, low salary, political
interference and inconsistency of government policies. In the meantime, inadequate
resources, lack of experience and poor relationship between internal audit efficiency and
financial management effectiveness were main factors hindered efficiency of the internal
audit.
This study recommends the government and responsible agencies to increase efforts in
ensuring the internal audits in public sector are strengthened in order to meet citizen‟s
expectation towards public funds.