Determinants of Internal Audit Effectiveness in Local Government Authorities (LGAs): Evidence from Morogoro Region of Tanzania

Abstract

This study examines the determinants of internal audit effectiveness in Local Government Authorities (LGAs), addressing the growing importance of robust Internal Audit Function (IAF) in public sector governance. The study employed the descriptive research design based on a mixed research approach integrating both qualitative and quantitative approaches. Data were collected from 45 purposively selected respondents with extensive auditing experience. A multiple linear regression model was used to assess the impact of these factors on internal audit effectiveness. The empirical results indicate that the four factors account for 65.7% of the variance in internal audit effectiveness, with IT utilization being the most significant contributor (R² = 0.657, Adjusted R² = 0.616). The ANOVA results further validate the model, showing a statistically significant F-statistic of 3.2976 with a p-value of 0.001, indicating the robustness of the findings. Top management support was found to be critical in fostering a culture of accountability, while the independence of internal audit ensures objectivity and unbiased assessments. IT utilization was identified as a key driver in enhancing the efficiency and reliability of audit processes. Finally, the competence of internal auditors was shown to significantly influence the quality and accuracy of audit outcomes. The study recommends the need for institutionalizing top management support, safeguarding auditor independence, advancing IT utilization, and promoting continuous professional development for auditors. These measures are essential for improving governance and accountability within LGAs, thereby contributing to more effective and reliable internal audit practices.