Assessment Of The Prospects And Challenges Facing Technology In Internal Audit In Public Sector: A Case Of Dodoma Municipality And Chamwino District Council

ABSTRACT

This study was established to assess the contribution of technology on internal audit

in the public sector. The study has examined the perceptions of audit officers in

application of information technology in audit issues, explored the contribution made

by IT in implementing audit activities and investigated on the challenges facing the

application of IT in internal audit issues in the public sector. The research used a case

study methodology where multiple cases were taken and collected data and

information using questionnaire, direct interviews and documentations. Participants

involved in the study were management of the Chamwino district council and

Dodoma Municipality, internal auditors and accountants. The collected data and

information were mainly analyzed using explanation building and pattern matching.

The study identified that all the respondents agreed that that the auditors in the public

sector are happy with IT audit because it assists them more than manual audit.

Further, the study revealed that the IT audit is important in all audit activities. This is

explained by its contributions such as; easier to track error and mistakes, helps to

control fraudulent actions, easy to arrive into best opinion, mitigates risks, provides

more accurate results and is cost effective and time consuming.

Furthermore, the study observed that lack of experienced and skilled personnel,

shortage of work force; problems arising from the use of Epicor, management

perceptions over internal auditors, lack of IT policy that limits system accessibility

and unreliable electric power supply are likely to impede the application of IT in

internal audit issues.

The study recommends that more staff should be employed, more training should be

provided to staff, and staff should be sensitized to follow policies in the public

sector. In addition, the management is advised should do away with the culture of

perceiving internal audit as a police unit. It should look at it as a friend in providing

vital information for decision making. Moreover, the central government is requested

to take a lead in ensuring that the IT policy is put in place.