ON; EFFECTIVENESS OF INTERNAL AUDITING ON IMPROVING FINANCIAL MANAGEMENT IN LOCAL GOVERNMENT AUTHORITIES IN TANZANIA A CASE OF TEMEKE MUNICIPAL COUNCIL

Abstract

ABSTRACT The study aimed at assessing the effectiveness of internal auditing on improving financial management in local government authorities in Tanzania. This study adds to theory and policy by encouraging internal audit to have adequate staffing and funding so that it can conduct frequent audits of the respective governments. Since internal audit has been proven to have a major positive impact on financial management, this will enhance local government authorities' financial management. A descriptive research design was employed using 44 respondents who were surveyed employees with questionnaire as data collecting tool.

The study found that Internal auditor’s independence contribute to the financial management improvement (β = ¬0.651, p =0.001), since internal auditors are permitted to voice their opinions, internal audit is independent in carrying out its responsibilities .Internal auditor’s professional qualification contributes to the financial management (β = 0.251, p = 0.002), as Internal Auditors have appropriate professional qualification in performing their duties, internal audit team has professional experience, skills in governance, risk, and finance. Management support contributes to the financial management (β = -0.228, p =0.004), as management supports the internal audit function by allotting enough money for the accomplishment of its work plans and permits internal audit staff members to take part in training programs in order to move ahead their skills

The study recommends that internal auditors are always provided with relevant audit experience so they can carry out their duties with confidence, to keep making investments in capacity-b, and that the LGAs should ensure employee motivation programs to improve integrity and teamwork. Motivation can help keep employees committed to working hard and contributing as much value as possible to higher productivity, improved work quality, and financial gain across all departments.