A Dissertation Submitted to School of Business in the Partial Fulfillment of the Requirement for Award of the Degree of Master in Accounting and Finance of Mzumbe University
Procurement is very essential, sensitive and has become major concern of unit in various aspects of the public entities in Zanzibar (Public Procurement Act, 2016). The study intended to assess the contribution of internal audit in procurement of goods and services in public entities. Specifically, the study aimed at addressing three objectives namely: To assess the extent to which internal audit evaluate the effectiveness of internal controls in procurement process; to assess the extent to which internal audit evaluate policies and procedures of the procurement management unit and; to assess the effectiveness of internal audit in risk assessment and management in procurement management unit.
Data were collected from both primary and secondary sources. The study used Questionnaires, interviews, and observations as a data collection instruments. Documentary reviews were used to complement the primary data. The data were analyzed through the statistical package for social science (SPSS). The study used descriptive or qualitative research methodology, employing a case study research design. A sample size of 91 respondents was selected from internal audit unit, procurement unit, and tender board members. Officers in charge from other departments of the Ministry of States, President’s Office, Constitution, Legal Affairs, Public Services and Good Governance were also involved.
The study found out that the effectiveness of internal audit in Internal control of procurement process at President’s Office, Constitution, Legal Affairs, Public Service and Good Governance is effective and adequate by 74% of its average to present errors and irregularities. The extent to which internal audit evaluate policies and procedures as clear indicated by 56% of its average, provides clear guidance toward the Procurement Unit. The study also found that the effectiveness of internal audit in risk assessment and management in procurement management unit is also adequate by 65% of its average. The study recommends for the adherence of the policy and procedure and proper implementation of internal control system.