The Effects of Auditors’ Credibility and the Implementation of Audit Recommendations in Enhancing Procurement Performance in Tanzania

Abstract

The purpose of this study was to explore the impact of auditors’ credibility and the implementation of audit recommendations in enhancing procurement performance in Tanzania. The study adopted a cross-sectional research design. Both probability and non-probability sampling techniques were employed to obtain a sample size of 132 respondents drawn from four Local Government Authorities (LGAs). Data were collected through questionnaires, documentary review, and interviews. Data were analyzed using content analysis, descriptive analysis, and multiple regression analysis. On one hand, study findings revealed that LGAs do not provide sufficient training to internal auditors on procurement-related matters, internal auditors are not fully independent in discharging their duties, and there is a knowledge gap among auditors in terms of their professionalism and understanding of procurement laws and regulations. On the other hand, the study revealed inefficient implementation of procurement audit recommendations, staff implicated for procurement malpractices are not punished accordingly, and audited organizations do not train their staff to bridge the knowledge gap identified by auditors. Moreover, there is infrequent monitoring of LGAs through auditing. This study is limited in terms of scope as it covered four LGAs out of 184 in Tanzania. Hence, these findings can’t be used to generalize to all LGAs. Auditors should be updated on procurement matters and be independent both financially and in their reporting structure. Also, audited entities should be committed to implementing all issued audit recommendations. This paper is an excerpt of the Master's dissertation and adds value to the public on the continued unsatisfactory procurement performance of audited Procuring Entities despite frequent auditing and recommendations issued