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Browsing Accounts by Subject "Audit Committee Effectiveness, Audit Opinions, Entities' characteristics."

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    Effect of Audit Opinions and Entity's Characteristics on Audit Committees' Effectiveness in Government Entities in Tanzania
    (TIA, 2022-12-01) Mwombeki, Frank A.
    This paper examines the influence of audit opinions and entity characteristics on audit committee effectiveness (ACE) in government entities. Using a large sample of government entities in Tanzania as a reference, the paper adopted the resource dependency theory to explain the theme. Data were collected from 230 government entities' financial statements and Controller and Auditor General (CAG) reports from 2014/15 to 2019/20. The ordinary least square (OLS) technique was utilised to obtain regression results. The results show that disclaimer opinion negatively affects Audit Committee (AC) effectiveness. Qualified Opinion and Adverse Opinion were found to be insignificant though they had a negative relationship the same as disclaimer opinion. Specifically, unqualified opinion is a significant positive aspect related to AC effectiveness. Furthermore, entity structure, size, and location significantly and positively influenced AC effectiveness. On the other hand, firm age had statistically insignificant effect. The study findings imply that an entity should have experienced/competent audit committee members in accountancy. Also, the audit committee must be well-composed and have sufficient resources to obtain a clean report. Therefore, the paper recommends inviting the national audit office to every audit committee meeting. The board and management should emphasise on the budget for the training AC members. Further, the President's Office - TAMISEMI and the ministry responsible for finance should insist on the establishment and activeness of AC in all government entities in Tanzania. As per the author's knowledge, this paper adds new empirical knowledge by utilising CAG reports to link the effectiveness of AC with audit opinions and entity characteristics in Tanzania.