Internal Audit as a Tool for Promoting Good Management in the Public Sectors in Tanzania: A Case Study of AUWSA, Arusha, Tanzania
The purpose of this paper was to assess the internal audit practice and process in the public sectors. In attempting to adequately discharge their responsibilities, internal auditors often find themselves in an anomalous position. This can be observed in situations and problems that are connected with the whistle-blowing, particularly when the internal job security or threatened progress of the internal auditor. The problem is the presence of massive misuses of financial resources amongst Tanzanian government agencies out of which Arusha Urban Water Supply and Sanitation Authority (AUWSA) is on the main glance. The objectives of the study included: To examine the internal audit practice and process at AUWSA. To assess the challenges encountered by the internal auditors. The Research Approach is qualitative in nature. The case study research design was used. The targeted population for this study was AUWSA staff which include Administration and other staff. Purposive/ judgmental sampling technique was used to formulate ten respondents as a sample size. The data collection methods were interview and observation. The data were analysed thematically. The findings revealed that audit practices and procedures do not comply with the International Standards on Auditing (ISA). The internal auditor faces challenges like lack of independence and technology, and negative attitude from fellow workers. The internal audit is considered as the backbone of the business accounting as it is the section that records all businesses related to the sector. The present study is unique in its examination of the relationship between internal audit factors and firm performance. The study recommends that the internal audit procedures and practices should comply with ISA. Besides, the management should ensure conducive working environment to internal auditor. Limitations in the study included: confidentiality and data storage inaccessibility of some important documents and Respondents’ Reluctance in providing Information
Arnold, D. F. Sr., & Ponemon, L A (1991). “Internal Auditors Perceptions of Whistle-Blowing and the Influence of Moral Reasoning an Experiment Auditing. A Journal of Practice and Theory, vol. 10, no. 2, pp. 1 – 15
Barasa, K. S. (2015). Statistical Analysis of the Role of Internal Audit in Promoting Good Governance in Public Institutions in Kenya. Journal of Investment and Management, 2015
Baxter, L. A., & Babbie, E. (2004). The Basics of Communication Research. Belmont, CA USA: Wadsworth/Thomson.
Chepkorir. (2010). Roles and Challenges of Internal Auditing in the Banking Industry in Kenya.
Christopher, Sarens & Leung. (2010). The Association between Corporate Governance Guidelines and Risk Management and Internal Control Practices: Evidence from a Comparative Study. Managerial Auditing Journal, 2010.
Cohen, J., G., Krishnamoorthy and A. Wright. (2004). The Corporate Governance Mosaic and Financial Reporting Quality. Journal of Accounting Literature 23: 87-152.
Cooper, D. R., & Schindler, P. S. (2003). Business Research Methods (8th Ed.). New Delhi, India: Tata McGraw-Hill Publishing Company Limited.
Davidson, R., Goodwin-Stewart, J. and Kent, P. (2005). Internal Governance Structures and Earnings Management, Accounting and Finance, 45(2), pp. 241-67.
Hair, J. J., Celsi, M. W., Money, A. H., Samouel, P., & Page, M. J. (2011). Essentials of Business Research Methods (2nd Ed.). New York, USA: M.E. Sharpe Inc.
Herdman, R. (2002). Making audit committees more effective. Speech at Tulane Corporate Law Institute, March 10. Available at: http://www.sec.gov/news/speech/spch543.htm
Institute of Internal Auditors (1999). “Definition of Internal Auditing”, the Institute of Internal Auditors, Altamonte Springs, FL.
Jwan, J. O., & Ong’ondo, C. O. (2011). Qualitative Research: An Introduction to Principles and Techniques. Eldoret, Kenya: Moi University Press.
Mosha, A. (2014). “Effectiveness of Internal Audit as an Instrument for Improving Management in the Public Sector: A Case Study of Kibaha Town Council (KTC)”
Richards, L.A. (2002). Remarks at the 2002 Internal Auditors Division Annual Conference. Speech from Tempe, AZ, October 15. Available at: http://www.sec.gov/news/speech/spch591.htm.
Sawa, V.S. (2010). An Essay Paper on: The Profession of Auditing in Public Firm. Dar Salaam
Saunders, M., et al. (2003). Research Methods for Business Students (3rd Ed.). Edinburgh, England: Pearson Education Limited.
Taiwo et al., (2016). “Promoting Good Governance through Internal Audit Function (IAF): The Nigerian Experience”
Wade Brylow (2016), Five Elements of an Effective Internal Audit Process. Retrieved from https://misti.com/internal-audit-insights-11/05/2018