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

Internal Auditing, Staff Competence, Independence, Management Support, Procurement Performance

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