Challenges facing internal audit function in improving organizational performance in local government authorities in Tanzania: a theory of wrestling for efficiency

Abstract

The study investigates challenges facing internal auditing function in improving organizational performance. It uses a grounded theory strategy for data collection and analysis. The research was conducted in four Local Government Authorities (LGAs) in Tanzania. The study findings revealed that structural limitations and capability deficiencies in terms of staffing, sufficient funding and lack of other working facilities were the challenges perceived to hinder the effectiveness and efficiency of LGAs internal audit units (IAUs). It was also revealed that efficiency and effective internal audit function in Tanzanian LGAs cannot be achieved unless internal actors, particularly management, support the function of internal audit units. The study provides evidence to the existing literature of how internal auditing can be used as an instrument to foster organizational efficiency despite challenges faced, and confirms that management support to IAUs to be the most important attribute contributing towards effective internal auditing.