The contribution of audit committee composition on the effectiveness of audit committee a case of Tanzania public sector
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Date
2017
Authors
Journal Title
Journal ISSN
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Publisher
University of Dar es Salaam
Abstract
This study focused on Audit Committee in the Tanzania Public Sector with the main objective of investigating the contribution of Audit Committee Composition on the Performance of Audit Committee. For better analysis this objective was subdivided into specific objectives which were; To assess the contribution of Audit Committee independence on the Performance of the Audit Committee, to assess the contribution of Competence of Audit Committee members on the performance of the Audit Committee, to assess the contribution of Audit Committee size on the performance of Audit Committee and finally to assess the Contribution of Objectivity of Audit Committee members on the performance of Audit Committee. The study based on two theories, i.e. the agency theory which stresses on the importance of Audit Committee and the Resource Dependency Theory, which explains the way Audit Committee should be formulated for effective implementation of its roles.
The study is of explanatory nature which adopted the quantitative research method. The deductive research approach and survey research strategy were applied. Data was collected using self-administered structured questionnaires. The convenient sample of 80 Public Servants who have business background dully filled the questionnaires. The data were subjected to both descriptive and inferential analyses using SPSS (version 16). The results of the descriptive analysis showed that Audit Committees in Tanzania Public Sector are not independent, Audit Committee members are incompetent and the members are not objective. However, the study found out that Audit Committees contain the optimal number of committee members. Also for the hypothesis testing the results showed that; Audit Committee Independence has significant contribution to the effectiveness of Audit Committee, Competence of Audit Committee members has significant contribution to the effectiveness of Audit Committee and Objectivity has significant contribution to the effectiveness of Audit Committee. However, the hypothesis testing showed that Audit Committee size has insignificant contribution to the effectiveness of Audit Committee and this is due to the fact that the analysis found the Committees size to be optimal but then the audit committees were ineffective.
Basing on the above findings, it is generally concluded that Audit Committees in Tanzania Public Sector are not effective. Therefore, the study recommends the review of the Tanzania Public Finance Act, 2001 as revised 2004 in order to enhance the effectiveness of Audit Committees. Further research can be extended to factors that influence the effectiveness of Audit Committee in the Public Sector other than Audit Committee Composition.
Description
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HF5667.I5.T34R87)
Keywords
audit committee, public sector, Tanzania
Citation
Rutajama, A. (2017) The contribution of audit committee composition on the effectiveness of audit committee a case of Tanzania public sector. Master dissertation, University of Dar es Salaam. Dar es Salaam.