The Influence of Procurement Audit on Procurement Effectiveness

Abstract

The contribution and significances of procurement audit towards the procurement activities brought several debates in the country. This study examined the influence of the procurement audit on the procurement effectiveness of public organizations in Tanzania. The study identified compliance audit, value for money audit and strategic audit as the main procurement audits that are implemented in the public sector. The specific objectives were therefore, to ascertain the influence of each of the stated procurement audit on the procurement effectiveness. The study was carried out in Dar es Salaam city, surveying five public organizations (TRA, TTCL, DCC, MSD and TANESCO) that were selected to represent all other public organizations in generalizing the findings. In this survey design, 154 respondents were selected via snowball sampling techniques to represent a total of 250 respondents in data collection. Primary data were collected by self-administered questionnaires and four PPRA reports were reviewed to compile secondary data. Data were quantitatively analysed using inferential statistics; correlation and regression analysis with the aid of statistical Packages for Social sciences (IBM SPSS Statistics 23). The findings revealed that, value for money audit has high significant contribution to the procurement effectiveness followed by the compliance audit. On the other hand, the strategic audit showed an insignificant contribution to the procurement effectiveness. The study recommends, the government and PPRA to emphasize and ensure matters and recommendations given by procurement auditors are dealt accordingly while also strengthening procurement audit so as to improve procurement effectiveness and public funds management at large.