Title:
FACTORS DETERMINING INTERNAL AUDIT FUNCTION EFFECTIVENESS OF LISTED COMPANIES IN TANZANIA: AN INSTITUTIONAL THEORY PERSPECTIVE

Authors:
Antipas Deogratias Francis Massawe PhD student, Abdiel Abayo, PhD and Salvio Macha, Tanzania

Abstract:
The purpose of this research was to examine management support and professional proficiency as determinants of internal audit function effectiveness of listed companies in Tanzania. The study applied cross-sectional survey strategy. Data were collected through survey questionnaire responses to companies listed at Dar es Salaam Stock Exchange (DSE) in Tanzania. Data were analysed through variance based, partial least squares structural equation modeling (PLS-SEM). The study reported R2 of 0.545 implying that management support and professional proficiency together explained 54.5% variation in the internal audit function effectiveness. The study finding was that professional proficiency positively and significantly is related to internal audit function effectiveness of these companies. However, management support was not statistically significant determinant of IAF effectiveness. These findings depict that in less developed economies professional proficiency is more important than management support because of infancy corporate governance and it is established as a compliance symbolic function.