A Dissertation Submitted in Partial Fulfillment of the Requirements for Award of the Degree of Master of Science in Accounting and Finance (MSc A&F) of Mzumbe University
Ineffectiveness of Internal Control (IC) / Internal Control System (ICS) is a problem in recurrence in Local Government Authorities (LGAs) of Tanzania. Though there are a number of both national and international studies that have already been done concerning IC and its implications on different aspects, none seem to have been done specifically to assess the contribution of operational audits in improving the effectiveness of the same in LGAs of Tanzania. As a result, solutions for improving its (IC) effectiveness from one fiscal year to another have not been unveiled. The study, ‗Assessing the Contribution of Operational Auditing in Improving the Effectiveness of Internal Control in Local Government Authorities of Tanzania‘, is therefore meant to bridge the gap. In conducting this study a case of Kisarawe District Council (KDC) was taken, from which, judgmental sampling was used to select respondents amongst the working staff and councilors. In the course of data collection, questionnaires and interviews were used in the collection of primary data, whereas documentary reviews facilitated the collection of secondary data. The analysis of quantitative data obtained through questionnaires was done by using the Statistical Package for Social Sciences (SPSS) computer program. The analysis of qualitative data obtained through interviews was by content. It was found that no specific stand-alone operational audit is conducted on the KDC‘s internal control system, thus causing persistent ineffectiveness of the ICS caused by some weaknesses due to lack of special appraisal for the same. As said by Derakhshanmehr (2012), operational auditing is indeed a viewpoint which identifies the causes of insufficiencies, weaknesses and deficiencies of a system and plans to eliminate them. It is therefore recommended that operational audits should be conducted on the internal control systems in order to assist the Tanzanian LGAs in getting rid of persistently ineffective internal control.