Independence and reporting relationship of internal audit in Tanzania regulatory authorities firms.

The objective of this study was determine the level of independence and reporting relationship for internal audit in Regulatory Agencies in Tanzania. Specifically the study aimed at assessing whether the reporting relationship of internal audit in regulatory authorities enhance independence of internal audit. Across-sectional study was employed, whereby both structured questionnaire was sent to 40 respondents comprising 20 internal auditors and 20 accountants from the 14 selected regulatory authorities. Out of 40 expected respondents, responses received were 32. Data obtained were analysed quantitatively using excel spreadsheet while qualitatively were analysed by contents analysis method. Findings from the study indicate that the current internal auditors report functionally to Chief Executive Officers. Audit committees are composed members who are part of the management team. The study recommended that functionally to audit committee. Also the head of internal audit function should be appointed and evaluated by audit committee and members of audit committee should drawn from non executive directors.