Enhancing Procurement Integrity: Key Factors Influencing Internal Audit Effectiveness in Tanzania Public Procurement

Yıl 2024, Cilt: 6 Sayı: 1, 1 – 14, 31.03.2024

Joseph I. David , Magashi J. Ntegwa

https://doi.org/10.54821/uiecd.1435837

Öz

Bu makale, Tanzanya’nın kamu sektöründe iç denetim yeterliliği, bağımsızlık ve prosedürlerinin iç denetim etkinliği üzerindeki etkilerini analiz etmektedir. Çalışma, nicel bir yaklaşımla yürütülmüş olup veriler, kamu sektöründeki muhasebe görevlileri, üst düzey yöneticiler, denetim komiteleri ve iç denetim birimlerinden oluşan çalışanlardan anketler aracılığıyla veriler toplanmıştır. Toplamda 318 yanıt toplanmıştır. Toplanan verileri analiz etmek, modeli değerlendirmek ve hipotezleri test etmek için R-studio kullanılarak Kısmi En Küçük Kareler Yapısal Eşitlik Modellemesi (PLS-SEM) yöntemi uygulanmıştır. Bulgular, iç denetim özelliklerinin prosedürlerinin, bağımsızlığının ve yeterliliğinin iç denetim etkinliğini satın almada etkilediğini ortaya koymuştur. Çalışma bulguları, Tanzanya’da iç denetimlerin özelliklerinin etkisi iç denetimlerin etkinliğini artırılması hakkında politika yapıcılar, akademisyenler ve iç denetim uygulayıcıları için faydalı bilgiler sunmaktadır.

Anahtar Kelimeler

Satın Alma, İç Denetim, Tanzanya, Verimlilik

Kaynakça

  • Alkebsi, M., & Aziz, K. A. (2017). Information technology usage, top management support and internal audit effectiveness. Asian Journal of Accounting and Governance, 8(Special Issue), 123–132.
  • Alqudah, H., Amran, N., & Hassan, H. (2019). Extrinsic factors influencing internal auditors’ effectiveness in jordanian public sector. Review of European Studies, 11(2), 67.
  • Alzeban, A., & Gwilliam, D. (2014). Factors affecting the internal audit effectiveness: A survey of the Saudi public sector. Journal of International Accounting, Auditing and Taxation, 23(2), 74–86.
  • Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411–423.
  • Cherotich, J., Ayuya, O. I., & Sibiko, K. W. (2019). Effect of financial knowledge on performance of women farm enterprises in Kenya. Journal of Agribusiness in Developing and Emerging Economies, 9(3), 294–311.
  • Cohen, A., & Sayag, G. (2010). The Effectiveness of Internal auditing: an empirical examination of its determinants in Israeli organisations. Australian Accounting Review, 20(3), 296–307.
  • David, J. I. (2019). The Contribution of internal audits on the effective procurement assignments in selected local government authorities in Tanzania [Ph.D., The Open University of Tanzania]. http://repository.out.ac.tz/3058/
  • David, J. I. (2022). Contribution of internal audits on the effectiveness of procurement assignments in Tanzania’s local government authorities (LGAs). Tanzanian Economic Review, 12(1), 93–110.
  • Davis, J. H., Schoorman, F. D., & Donaldson, L. (1997). Toward a stewardship theory of management. The Academy of Management Review, 22(1), 20–47.
  • Dejnaronk, J., Little, H., Mujtaba, B., & McClelland, R. (2016). Factors influencing the effectiveness of the internal audit function in Thailand. Journal of Business and Policy Research, 11(2), 80–93.
  • Dellai, H., & Omri, M. A. B. (2016). Factors affecting the internal audit effectiveness in Tunisian organizations. Research Journal of Finance and Accounting, 7(6), 208–221.
  • Dittenhofer, M. (2001). Internal auditing effectiveness: An expansion of present methods. Managerial Auditing Journal, 16(8), 443–450.
  • Drogalas, G., Karagiorgos, T., & Arampatzis, K. (2015). Factors associated with internal audit effectiveness: evidence from Greece. Journal of Accounting and Taxation, 7(7), 113–122.
  • Endaya, K. A., & Hanefah, M. M. (2013). Internal audit effectiveness: An approach proposition to develop the theoretical framework. Research Journal of Finance and Accounting, 4(10), 92-102.
  • Etse, D., & Asenso-Boakye, M. (2014). Public procurement audit process in practice a case study of the public procurement authority office in Kumasi and the procurement unit of the Kumasi polytechnic. International Journal of Economics, Commerce and Management, 2(2). https://papers.ssrn.com/abstract=2399411
  • Feng, J. (2022). Factors affecting internal and external audits based on experimental analysis. 1849–1855. Fiedler, Fred. E. (1964). A contingency model of leadership effectiveness. In Advances in Experimental Social Psychology, 1, 149–190.
  • Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.
  • Gideon, E. M. (2015). Buyer/Supplier relationship: a factor influencing e-procurement performance. European Journal of Logistics, Purchasing and Supply Chain Management (EJLPSCM), 3(2). https://eajournals.org/ejlpscm/vol-3issue-2june-2015/buyersupplier-relationship-a-factor-influencing-e-procurement-performance/
  • Grima, S., Baldacchino, P. J., Grima, S., Kizilkaya, M., Tabone, N., & Ellul, L. (2023). Designing a characteristics effectiveness model for internal audit. Journal of Risk and Financial Management, 16(2), 56.
  • Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial least squares structural equation modeling (PLS-SEM) using R: A Workbook. Springer International Publishing.
  • Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24.
  • Hulland, J. (1999). Use of partial least squares (PLS) in strategic management research: A review of four recent studies. Strategic Management Journal, 20(2), 195–204.
  • IIA. (2010). Practice guide: Measuring internal audit effectiveness and efficiency. IIA Store. https://store.theiia.org/practice-guide-measuring-internal-audit-effectiveness-and-efficiency-pdf
  • IIA. (2021a). Auditing procurement in the public sector: Guidance. https://www.theiia.org/en/content/guidance/recommended/supplemental/practice-guides/auditing-procurement-in-the-public-sector/
  • IIA. (2021b). Measuring internal audit effectiveness and efficiency. https://www.theiia.org/en/content/guidance/recommended/supplemental/practice-guides/measuring-internal-audit-effectiveness-and-efficiency/
  • Karikari, A. M., Tettevi, P. K., Amaning, N., Opoku Ware, E., & Kwarteng, C. (2022). Modeling the implications of internal audit effectiveness on value for money and sustainable procurement performance: An application of structural equation modeling. Cogent Business & Management, 9(1), 2102127.
  • Kihamba, J. S., & Ntegwa, M. J. (2022). Public service delivery procurement and the economics of the state-owned enterprises in Tanzania. In F. G. Netswera, O. M. Fagbadebo, & N. Dorasamy, State-owned enterprises in Africa and the economics of public service delivery (pp. 161–174).
  • Matto, M. C. (2017). Analysis of factors contributing to poor performance of procurement functions in local government authorities: Empirical evidence from audit reports. European Journal of Logistics, Purchasing and Supply Chain Management, 5(3), 41–52.
  • Meyer, J. W., & Rowan, B. (1977). Institutionalized organizations: formal structure as myth and ceremony. American Journal of Sociology, 83(2).
  • Mihret, G. D., James, K., & Mula, J. M. (2010). Antecedents and organisational performance implications of internal audit effectiveness: Some propositions and research agenda. Pacific Accounting Review, 22(3), 224–252.
  • Mihret, G. D., & Yismaw, A. W. (2007). Internal audit effectiveness: An Ethiopian public sector case study. Managerial Auditing Journal, 22(5), 470–484.
  • Samagaio, A., & Felício, T. (2023). The determinants of internal audit quality. European Journal of Management and Business Economics. 5(23), 86-95.
  • Shishiwa, J. K., & Said, H. R. (2020). Internal audit as a tool for promoting good management in the public sectors in Tanzania: A Case Study of AUWSA, Arusha, Tanzania. African Journal of Education, Science and Technology, 5(4), 40–49.
  • Stewart, J., & Subramaniam, N. (2010). Internal audit independence and objectivity: Emerging research opportunities. Managerial Auditing Journal, 25(4), 328–360.
  • Ta, T. T., & Doan, T. N. (2022). Factors Affecting internal audit effectiveness: Empirical evidence from Vietnam. International Journal of Financial Studies, 10(2), 37.
  • Tahajuddin, S. B., & Kertali, M. (2018). The effect of internal audit characteristics on the effectiveness of internal auditors. European Journal of Accounting, Auditing and Finance Research, 6(7), 54–69.
  • Tulli, M. M. (2016). Challenges facing internal audit function in improving organizational performance in local government authorities in Tanzania: A theory of wrestling for efficiency. African Journal of Finance and Management, 25(1), 1–19.
  • Turetken, O., Jethefer, S., & Ozkan, B. (2019). Internal audit effectiveness: Operationalization and influencing factors. Managerial Auditing Journal, 35(2), 238–271.
  • URT. (2001). The public finance act, 2001.
  • URT. (2011). The public procurement act, 2011.
  • URT. (2023). Annual general report of the controller and auditor general for the financial year 2021/22.
  • Yee, C. S. L., Sujan, A., James, K., & Leung, J. K. S. (2008). Perceptions of Singaporean internal audit customers regarding the role and effectiveness of internal audit. Asian Journal of Business and Accounting, 1(2), 147–174.
  • Yusof, N. A. Z. M., Haron, H., Ismail, I., & Hock Chye, O. (2019). Independence of internal audit unit influence the internal audit capability of malaysian public sector organizations. KnE Social Sciences, 2019, 1230–1253.
  • Yussuf, M., Tonya, E., & Mohamed, S. (2021). The effect of internal auditing on procurement performance in parastatal organizations of Tanzania. Business Education Journal, 10(3), 1–15.

Enhancing Procurement Integrity: Key Factors Influencing Internal Audit Effectiveness in Tanzania Public Procurement

Yıl 2024, Cilt: 6 Sayı: 1, 1 – 14, 31.03.2024

Joseph I. David , Magashi J. Ntegwa

https://doi.org/10.54821/uiecd.1435837

Öz

This paper analyses the effects of internal audit competence, independence, and procedures on internal audit effectiveness in the procurement process in the public sector of Tanzania. The study is quantitative, and data were collected through questionnaires from accounting officers, senior management officers, audit committees, and internal audit units in public sectors. A total of 318 responses were collected. A Partial Least Structural Equation Modelling (PLS-SEM) technique was applied using R-studio to analyse the collected data, assess the model and test hypotheses. The findings revealed that internal audit characteristics procedures, independence and competence influence internal audit effectiveness in procurement. The study findings provide useful insights for policymakers, academics, and internal audit practitioners on the effect of the characteristics of internal audits in improving the effectiveness of internal audits in procurement in Tanzania.

Anahtar Kelimeler

Procurement, Internal Audit, Tanzania, Effectiveness

Kaynakça

  • Alkebsi, M., & Aziz, K. A. (2017). Information technology usage, top management support and internal audit effectiveness. Asian Journal of Accounting and Governance, 8(Special Issue), 123–132.
  • Alqudah, H., Amran, N., & Hassan, H. (2019). Extrinsic factors influencing internal auditors’ effectiveness in jordanian public sector. Review of European Studies, 11(2), 67.
  • Alzeban, A., & Gwilliam, D. (2014). Factors affecting the internal audit effectiveness: A survey of the Saudi public sector. Journal of International Accounting, Auditing and Taxation, 23(2), 74–86.
  • Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411–423.
  • Cherotich, J., Ayuya, O. I., & Sibiko, K. W. (2019). Effect of financial knowledge on performance of women farm enterprises in Kenya. Journal of Agribusiness in Developing and Emerging Economies, 9(3), 294–311.
  • Cohen, A., & Sayag, G. (2010). The Effectiveness of Internal auditing: an empirical examination of its determinants in Israeli organisations. Australian Accounting Review, 20(3), 296–307.
  • David, J. I. (2019). The Contribution of internal audits on the effective procurement assignments in selected local government authorities in Tanzania [Ph.D., The Open University of Tanzania]. http://repository.out.ac.tz/3058/
  • David, J. I. (2022). Contribution of internal audits on the effectiveness of procurement assignments in Tanzania’s local government authorities (LGAs). Tanzanian Economic Review, 12(1), 93–110.
  • Davis, J. H., Schoorman, F. D., & Donaldson, L. (1997). Toward a stewardship theory of management. The Academy of Management Review, 22(1), 20–47.
  • Dejnaronk, J., Little, H., Mujtaba, B., & McClelland, R. (2016). Factors influencing the effectiveness of the internal audit function in Thailand. Journal of Business and Policy Research, 11(2), 80–93.
  • Dellai, H., & Omri, M. A. B. (2016). Factors affecting the internal audit effectiveness in Tunisian organizations. Research Journal of Finance and Accounting, 7(6), 208–221.
  • Dittenhofer, M. (2001). Internal auditing effectiveness: An expansion of present methods. Managerial Auditing Journal, 16(8), 443–450.
  • Drogalas, G., Karagiorgos, T., & Arampatzis, K. (2015). Factors associated with internal audit effectiveness: evidence from Greece. Journal of Accounting and Taxation, 7(7), 113–122.
  • Endaya, K. A., & Hanefah, M. M. (2013). Internal audit effectiveness: An approach proposition to develop the theoretical framework. Research Journal of Finance and Accounting, 4(10), 92-102.
  • Etse, D., & Asenso-Boakye, M. (2014). Public procurement audit process in practice a case study of the public procurement authority office in Kumasi and the procurement unit of the Kumasi polytechnic. International Journal of Economics, Commerce and Management, 2(2). https://papers.ssrn.com/abstract=2399411
  • Feng, J. (2022). Factors affecting internal and external audits based on experimental analysis. 1849–1855. Fiedler, Fred. E. (1964). A contingency model of leadership effectiveness. In Advances in Experimental Social Psychology, 1, 149–190.
  • Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.
  • Gideon, E. M. (2015). Buyer/Supplier relationship: a factor influencing e-procurement performance. European Journal of Logistics, Purchasing and Supply Chain Management (EJLPSCM), 3(2). https://eajournals.org/ejlpscm/vol-3issue-2june-2015/buyersupplier-relationship-a-factor-influencing-e-procurement-performance/
  • Grima, S., Baldacchino, P. J., Grima, S., Kizilkaya, M., Tabone, N., & Ellul, L. (2023). Designing a characteristics effectiveness model for internal audit. Journal of Risk and Financial Management, 16(2), 56.
  • Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial least squares structural equation modeling (PLS-SEM) using R: A Workbook. Springer International Publishing.
  • Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24.
  • Hulland, J. (1999). Use of partial least squares (PLS) in strategic management research: A review of four recent studies. Strategic Management Journal, 20(2), 195–204.
  • IIA. (2010). Practice guide: Measuring internal audit effectiveness and efficiency. IIA Store. https://store.theiia.org/practice-guide-measuring-internal-audit-effectiveness-and-efficiency-pdf
  • IIA. (2021a). Auditing procurement in the public sector: Guidance. https://www.theiia.org/en/content/guidance/recommended/supplemental/practice-guides/auditing-procurement-in-the-public-sector/
  • IIA. (2021b). Measuring internal audit effectiveness and efficiency. https://www.theiia.org/en/content/guidance/recommended/supplemental/practice-guides/measuring-internal-audit-effectiveness-and-efficiency/
  • Karikari, A. M., Tettevi, P. K., Amaning, N., Opoku Ware, E., & Kwarteng, C. (2022). Modeling the implications of internal audit effectiveness on value for money and sustainable procurement performance: An application of structural equation modeling. Cogent Business & Management, 9(1), 2102127.
  • Kihamba, J. S., & Ntegwa, M. J. (2022). Public service delivery procurement and the economics of the state-owned enterprises in Tanzania. In F. G. Netswera, O. M. Fagbadebo, & N. Dorasamy, State-owned enterprises in Africa and the economics of public service delivery (pp. 161–174).
  • Matto, M. C. (2017). Analysis of factors contributing to poor performance of procurement functions in local government authorities: Empirical evidence from audit reports. European Journal of Logistics, Purchasing and Supply Chain Management, 5(3), 41–52.
  • Meyer, J. W., & Rowan, B. (1977). Institutionalized organizations: formal structure as myth and ceremony. American Journal of Sociology, 83(2).
  • Mihret, G. D., James, K., & Mula, J. M. (2010). Antecedents and organisational performance implications of internal audit effectiveness: Some propositions and research agenda. Pacific Accounting Review, 22(3), 224–252.
  • Mihret, G. D., & Yismaw, A. W. (2007). Internal audit effectiveness: An Ethiopian public sector case study. Managerial Auditing Journal, 22(5), 470–484.
  • Samagaio, A., & Felício, T. (2023). The determinants of internal audit quality. European Journal of Management and Business Economics. 5(23), 86-95.
  • Shishiwa, J. K., & Said, H. R. (2020). Internal audit as a tool for promoting good management in the public sectors in Tanzania: A Case Study of AUWSA, Arusha, Tanzania. African Journal of Education, Science and Technology, 5(4), 40–49.
  • Stewart, J., & Subramaniam, N. (2010). Internal audit independence and objectivity: Emerging research opportunities. Managerial Auditing Journal, 25(4), 328–360.
  • Ta, T. T., & Doan, T. N. (2022). Factors Affecting internal audit effectiveness: Empirical evidence from Vietnam. International Journal of Financial Studies, 10(2), 37.
  • Tahajuddin, S. B., & Kertali, M. (2018). The effect of internal audit characteristics on the effectiveness of internal auditors. European Journal of Accounting, Auditing and Finance Research, 6(7), 54–69.
  • Tulli, M. M. (2016). Challenges facing internal audit function in improving organizational performance in local government authorities in Tanzania: A theory of wrestling for efficiency. African Journal of Finance and Management, 25(1), 1–19.
  • Turetken, O., Jethefer, S., & Ozkan, B. (2019). Internal audit effectiveness: Operationalization and influencing factors. Managerial Auditing Journal, 35(2), 238–271.
  • URT. (2001). The public finance act, 2001.
  • URT. (2011). The public procurement act, 2011.
  • URT. (2023). Annual general report of the controller and auditor general for the financial year 2021/22.
  • Yee, C. S. L., Sujan, A., James, K., & Leung, J. K. S. (2008). Perceptions of Singaporean internal audit customers regarding the role and effectiveness of internal audit. Asian Journal of Business and Accounting, 1(2), 147–174.
  • Yusof, N. A. Z. M., Haron, H., Ismail, I., & Hock Chye, O. (2019). Independence of internal audit unit influence the internal audit capability of malaysian public sector organizations. KnE Social Sciences, 2019, 1230–1253.
  • Yussuf, M., Tonya, E., & Mohamed, S. (2021). The effect of internal auditing on procurement performance in parastatal organizations of Tanzania. Business Education Journal, 10(3), 1–15.

Toplam 44 adet kaynakça vardır.

Ayrıntılar

Birincil Dil İngilizce
Konular Kamu Ekonomisi – Vergilendirme ve Gelir, Finansal Ekonometri
BölümAraştırma Makaleleri
Yazarlar

Joseph I. David Bir kuruma bağlı değildir 0000-0002-3917-8530 Tanzania

Magashi J. Ntegwa Bir kuruma bağlı değildir 0000-0003-4746-0453 Tanzania

Yayımlanma Tarihi31 Mart 2024
Gönderilme Tarihi12 Şubat 2024
Kabul Tarihi16 Mart 2024
Yayımlandığı Sayı Yıl 2024 Cilt: 6 Sayı: 1

Kaynak Göster

APADavid, J. I., & Ntegwa, M. J. (2024). Enhancing Procurement Integrity: Key Factors Influencing Internal Audit Effectiveness in Tanzania Public Procurement. International Journal of Business and Economic Studies, 6(1), 1-14. https://doi.org/10.54821/uiecd.1435837

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