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 Salaambased on LGAs ' audit committees as the case. The study was cross-sectional anddescriptive. Data were collected through questionnaire and in-depth interviewsfrom 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 lesseffective than anticipated. The committees under consideration werecharacterised by limited independence, financial literacy, diligence and inadequate performance of activities considered necessary for effectiveoversight of financial reporting. The study findings suggest that there should bedeliberate efforts to improve effectiveness of these committees. Such effortsshould focus at enhancing independence, financial literacy and diligence foreach member and the committee as a whole.  Keywords: Tanzania, Audit committees, audit committee effectiveness, financial reportingoversight