THE EFFECT OF INTERNAL AUDITING ON PROCUREMENT PERFORMANCE IN PARASTATAL ORGANIZATIONS OF TANZANIA

Abstract

Despite the critical role of internal audit units along with various strategies undertaken to enhance this role, presence of fraud, corruptions and other unethical practices still discontented with the auditing units inability to undertake auditing functions effectively without being detected and become a common phenomenon in parastatal organizations of Tanzania. This paper determined the role of internal audit on procurement performance. Specifically, it determined the influence of competence, independence, and management support on procurement performance and recommended strategies for improving the same. Quantitative approach was adopted and data were drawn from an explanatory research design sampled with 94 parastatals of Dar es Salaam through questionnaires from head of departments particularly user departments. Descriptive data analysis were employed to get mean and standard deviation of the findings, whereby data were summarized using frequency distribution tables and finally multiple regression model was used to analyze the data. The findings showed that independence and management support had a significant positive association with procurement performance at p<0.05. Competence had a non-significant positive association with procurement performance. The study recommended managements of parastatal organizations to provide training opportunities to the internal audit sections, ensuring the internal auditors to exercise their duties with autonomy as well as be free from any type of influence. Furthermore,management should ensure that internal audit sections are given full support to execute their functions thereby ensuring satisfactory procurement performance