| dc.description |
ABSTRACT
The study was about assessing the effectiveness of Internal Audit on Local Government
Authorities in Tanzania, a case of Mufindi District Council. The major objective of the
study was to assess the effectiveness of Internal Audit in Local Government Authorities
performance.
The specific objectives were; to assess the effectiveness level of Internal Audit of MDC,
to examine the relationship between Effectiveness of Internal Audits and Financial
Performance of MDC and to examine the factors that affect Effectiveness of Internal
Audits of MDC.
The study used correlational study in order to understand the important variable
influenced effectiveness of Internal Audit at MDC. Mufindi district council was chosen
by researcher to represent the case. In carrying out such study, the following
independent variables; professional proficiency of Internal Audits, organizational
independence, quality of audit work, and top management support were used to assess
how it influence effectiveness of Internal Audit at MDC.
The study was carried out in two stages, at a first stage the relationship between
dependent variable (effectiveness of Internal Audit) and independent variables
(professional proficiency of Internal Audits, organizational independence, and quality of
audit work, and top management support) was assessed and at second stage effectiveness
of Internal Audit was assessed to find out if they influence on one aspect of financial
performance of MDC.
Purposive sampling method was used during the process of data collection, on which 82
respondents were selected. In carrying out a purposive sampling technique the study
used judgment sampling design which is one of types of purposive sampling technique.
Data collected came from both Primary sources and Secondary sources. Data collection
tools used was Documentary review and Questionnaire. Both multiple regression
analysis and correlational analysis were used to analyse data.
The findings show that;
viii
During the assessment of effectiveness level of Internal Audit at MDC, the findings
indicate that there was inter-correlation between independent variables (Top
Management Support, Quality of Audit Work, Professional Proficiency, and
Organisational Independence) and dependent variables (Effectiveness of Internal Audits)
at MDC.
With other variables held constant, Effectiveness of Internal Audits positively related to
Top Management Support, quality of Audit Work, and Professional Proficiency, but
negatively related to Organisational Independence.
In assessing the relationship between effectiveness of Internal Audit and performance of
MDC, the finding indicated that, effectiveness of Internal Audit of MDC influence the
financial performance of MDC. This means that the financial performances of MDC
depending on other factors include effectiveness of Internal Audit.
The study concludes that despite the fact that the independent variables used to assess
the effectiveness of Internal Audit show a highly correlated to effectiveness of Internal
Audit the Internal Audit at MDC is on average effective. This is because the unit is
understaffing and not being fully independent.
It is recommended that, first Top management should increase both monetary and non
monetary support to Internal Audit in order for them to handle their activities.
Second Internal Audit staff should improve the quality of audit work in order for them to
add value to their organisations.
Third, Ministry responsible for LGAs and IAG should make sure that the level of
independence of Internal Audit staff been improved.
Forth Ministry responsible for LGAs and IAG should increase the Internal Audit budget
in order for them to complete their activities as planned |
|