Stakeholders Perspectives on the Effectiveness of Local Government Authorities Audit Committees

Abstract

The study examined effectiveness of Tanzanian Local Government Authorities’
(LGAs’) audit committees in overseeing financial reporting using Dar es Salaam
based on LGAs’ audit committees as the case. The study was cross-sectional and
descriptive. Data were collected through questionnaire and in-depth interviews
from audit committees’ key stakeholders, audit committee members inclusive.
Both quantitative and qualitative data were analysed descriptively. Overall,
findings revealed that Dar es Salaam based LGAs’ audit committees were less
effective than anticipated. The committees under consideration were
characterised by limited independence, financial literacy, diligence and
inadequate performance of activities considered necessary for effective
oversight of financial reporting. The study findings suggest that there should be
deliberate efforts to improve effectiveness of these committees. Such efforts
should focus at enhancing independence, financial literacy and diligence for
each member and the committee as a whole.

Keywords: Tanzania, Audit committees, audit committee effectiveness, financial reporting
oversight