Factors Influencing Inadequate Implementation of External Auditor's Recommendations in Tanzania: Case Study of Local Government Authorities

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Date

2021-09

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Publisher

The Institute of Finance Management

Abstract

The focus of this paper was to explore factors that influence inadequate implementation of Controller and Auditor General (CAG) recommendations in Tanzania’s public sector. This is a case study where Local Government Authorities (LGAs) bad been taken since a lot of unimplemented CAG audit recommendations were found compared to other public institutions in Tanzania's public sector. The study utilized descriptive research with primary data collected through a five-point Likert-scale type of questionnaire and face-to-face interview from some LGAs audited entities, external auditors and stakeholders. The data collected were analyzed through simple descriptive statistics. The results of this study established that there are inadequate commitments and capacity to make follow-up and thereafter implementation of CAG audit recommendations. Among the reasons for this include lack of interest for the audit report, lack of integrated effort in implementation, general weaknesses in making a follow-up, and delay in report presentation to the entity after being audited. The study recommends both CAG and LGAs to exercise their role for the betterment of the citizen they are expected to deliver services to. CAG office must ensure the availability of appropriate mechanisms for the implementation of audit recommendations in collaboration with respective LGAs. Furthermore, effective utilization of Audit Committees could assist in the implementation of the outstanding recommendations.

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Keywords

Auditing, Local Government Authorities, Public institutions, Tanzania

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