Relevance of the internal audit function in public sector organizations in Tanzania

In the public sector an increased emphasis on corporate governance and public reporting have changed the way internal audit operates and manages its activities. The internal audit function may be the most at-risk group in many organizations if it fails to be relevant to organization needs. Hence, the internal audit departments that do not address “the things that really matter” run the risk of becoming dispensable. The purpose of this study was therefore to determine the relevance of internal audit function in public sector organizations in Tanzania. To achieve the objective of the study a survey of seventy (70) respondents have been drawn from public sector organizations based in Dar es Salaam but only 63 returned the questionnaire which form 90% of the response rate. The survey data were statistically analysed with the aid of SPSS tool. The study found that expectations of users of the audit function is that they are looking for than a routine audit from the audit sections and look to audit for some level of assurance and advice. Moreover, the study revealed that there were some huddles in making internal audit more relevant such as incompetence of internal audit staff, lack of contemporary audit knowledge and lack of independence in activities being audited and reporting of their findings and appraisals to the organ superior to management. The study recommends improvement of relevance of internal audit functions includes enhancement of capacity building, auditors’ independence and management support towards Internal Audit Function.