The Role of Internal Auditing Independency on Procurement Performance in Dodoma City

Abstract

Despite the widely perceived importance of internal auditors as a tool for improving procurement performance, most local government authorities neglect their contribution. This study aimed to examines the perceived impact of internal auditors’ independence on procurement performance in local government authorities. The study employed a principal agency and stewardship theory; it adopted a convergent research design and a mixed approach. Survey questionnaires and interviews were used to collect quantitative and qualitative data from 60 staff members. Data were analyzed through descriptive and inferential statistics, wherein descriptive means and standard deviation were performed, whereas in inferential statistics, binary logistic regression was performed. Results revealed that Access to documents has positive significant influence on procurement performance with an odd ratio (OR) of 4.082 implying that having organization with internal audit freedom on access to document is 4.082 times likely to increase the on-procurement performance at Dodoma City Council than having organization with where internal auditors has no access to documents. Furthermore, reporting to board of director has positive significant influence on procurement performance with an odd ratio (OR) of 4.376 implying that having organization with internal auditors who Report to Board of Director is 4.376 times likely to increase the on-procurement performance of Dodoma City Council compared to organization were internal auditors who Report to Board of Director. On the other hand, performing none auditing function had no statistically significant influence on procurement performance (p-value=0.877). In order to devise appropriate solutions, the Dodoma City should establish a unit to assess how plan of IA and qualified, experienced, and knowledgeable individuals influence of procurement performance.