THE EFFECTS OF INTERNAL AUDIT UNIT CHARACTERISTICS ON MANAGEMENT OF PUBLIC FUND IN LOCAL GOVERNMENT AUTHORITIES IN TANZANIA: A CASE STUDY OF MKINGA DISTRICT COUNCIL

Abstract

ABSTRACT The study aims to assess the effects of internal audit Unit characteristics on management of public funds in Local government authorities in Tanzania. Specific objectives were; to examine the effects of internal audit unit independence on management of public fund, to examine the effects of competences of internal audit unit on management of public funds and to determine the effects of management support to internal audit unit on management of public funds in LGAs. Descriptive research was conducted as it allows application of all possible data collection techniques. Both qualitative and quantitative data analysis approaches are used for the purpose of arriving at a more holistic understanding of the problem. Data for the study were collected by employing both qualitative and quantitative methods incorporating questionnaires and interviews so as to gather comprehensive insights from key respondents, in which a total of 37 out of 62 respondents participated in the study. Qualitative data from the interviews were analyzed by content analysis and quantitative data were subjected to descriptive analysis through Statistical Package for Social Sciences (SPSS). Methods such as multiple regression analysis and correlation analysis were used so as to draw meaningful conclusions from quantitative data. The study findings revealed a positive relationship between the IAU’s independence, competence and management support as the IAU has ability to identify risks and ensure transparent practices, ability to identify and address issues proactively, access to information and resources to perform comprehensive audits. Furthermore the study proclaims strong management support as a critical factor in enabling the IAU to perform its duties effectively, as it provides the necessary resources, authority, and access to information for conducting comprehensive audit.