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.