The Effect of Internal Auditing on Procurement Performance in Parastatal Organizations of Tanzania

Abstract

Despite the critical role of internal audit units along with various strategies undertaken to enhance this role, presence of fraud, corruptions and other unethical practices still discontented with the auditing units inability to undertake auditing functions effectively without being detected and become a common phenomenon in parastatal organizations of Tanzania. This paper determined the role of internal audit on procurement performance. Specifically, it determined the influence of competence, independence, and management support on procurement performance and recommended strategies for improving the same. Quantitative approach was adopted and data were drawn from an explanatory research design sampled with 94 parastatals of Dar es Salaam through questionnaires from head of departments particularly user departments. Descriptive data analysis were employed to get mean and standard deviation of the findings, whereby data were summarized using frequency distribution tables and finally multiple regression model was used to analyze the data. The findings showed that independence and management support had a significant positive association with procurement performance at p<0.05. Competence had a non-significant positive association with procurement performance. The study recommended managements of parastatal organizations to provide training opportunities to the internal audit sections, ensuring the internal auditors to exercise their duties with autonomy as well as be free from any type of influence. Furthermore,management should ensure that internal audit sections are given full support to execute their functions thereby ensuring satisfactory procurement performance

Human resource development practices and procurement effectiveness: implications from public procurement professionals in Tanzania

“…Similarly, procurement practitioners' performance can be improved by making appropriate performance adjustments based on performance feedback from their superiors. Enhancement of procurement practitioners' performance through performance appraisal can bring about procurement effectiveness because it enables procuring entities to meet the desired level of procurement deliverables (Changalima et al, 2021;Goshie, 2020;Yussuf et al, 2021). In the context of this study, a procuring entity that effectively engages itself in the performance appraisal process will be able to improve the effectiveness of procurement functions by enabling procurement practitioners to carry out their duties effectively.…”

Supplier development and public procurement performance: Does contract management difficulty matter?

“…Items adapted from Akamp and Müller (2013) and Yang and Zhang (2017) were used to measure supplier development. Contract management difficulty was measured using indicators adapted from Handley and Benton (2012) and Zhao et al (2018), and procurement performance was measured using items adapted from Akamp and Müller (2013), Wachiuri (2018), and Yussuf et al (2021). Internal consistency reliability was assessed by using Cronbach's alpha under which all variables have values of Cronbach's alpha coefficients above 0.7 and hence the internal consistency reliability was achieved (Hair et al, 2010).…”

The effects of political interference on procurement performance in the parastatal organizations in Dar es Salaam Region

“…Due to the huge amount of public funds the governments have implemented numerous reforms to ensure efficiency and value for money (Odhiambo and Kamau, 2003). For instance, the governments have adopted the electronic procurement system, enacted the public procurement act and its regulations from time to time, established various organs to monitor the procurement function, and undertaken internal and external auditing periodically (Masoud, et al, 2021: Torvatn & de Boer (2017.…”

“…Despite government efforts, procurement performance is not impressive (Dávid-Barrett & Fazekas, 2019;Masoud, 2021). The procurement process is associated with project delays, poor quality work, overpriced goods, corruption, malpractice, and the misappropriation of scarce public funds (Myeza et al, 2021;CAG, 2020;AG 2021).…”