FACTORS AFFECTING PUBLIC PROCUREMENT AUDITING TOWARDS

ENSURING ACCOUNTABILITY

A CASE OF ZANZIBAR PUBLIC PROCUREMENT AND DISPOSAL

AUTHORITY

BY

ALI H.A HEMED

A Dissertation Submitted in Partial Fulfilment of the Requirements for the Award

of Master’s Degree of Supply Chain Management (MSCM) of the College of

Business Education

2020
 DECLARATION AND COPYRIGHT

I, Ali H.A Hemed, declare that this dissertation is my own original work and that it has

not been presented and will not be presented to any other higher learning Institution for a

similar or any other academic award.

Signature ____________________ Date _____________________

@ 2020

This dissertation is copyright material protected under the Berne Convention, the

Copyright and Neighbouring Rights Act of 1999 and other international and national

enactments, in that behalf, on intellectual property. It may not be reproduced by any

means, in full or in part, except for short extracts in fair dealing, for research or private

study, critical scholarly review or discourse with an acknowledgement, without the

written permission of the College of Business Education.

i
 CERTIFICATION

The undersigned certify that he has read and hereby recommend for acceptance by the

College of Business Education a Research Report titled “Factors affecting public

procurement auditing towards ensuring accountability” in partial fulfilment of the

requirements for the award of Master in Supply Chain Management of the College of

Business Education.

_________________________________

(Supervisor`s Name)

__________________________________

(Supervisor`s Signature)

Date: __________________________________

ii
 DEDICATION

I dedicate this research to my family, friends and relatives who not only emphasized me

to accomplish this report on time, but also, prayed for me throughout the course of

undertaking this study. I earnestly feel that without their inspiration, guidance and

dedication, I would not be able to pass through the tiring process of this research.

iii
 ACKNOWLEDGEMENT

The completion of this dissertation would not have been possible without the generous

assistance and contributions made by many people. First, I thank the Almighty God for

his protection: for all journeys to/from Pemba-Dar es salaam and for the whole period of

my study.

Second, I am indebted to all the people who, in one way or the other, facilitated my

study endeavor. I am particularly indebted to my supervisors, Dr. P. J. Ondiek of College

of Business Education (CBE). He guided and challenged me; his guidance helped me to

remain determined to the completion of this work. I sincerely thank him for his tireless

effort and constructive comments.

Third, I would like also to thank those who have directly or indirectly supported me

during preparation of this noble work. Specifically, I owe my loving thanks to my best

friend, my fellow CBE students, and my colleagues at ZPPDA with whom I have shared

some of the sorrows and joys of writing this work. I truly owe them a great part of my

success. I am indebted to ZPPDA (my employer) and entire management who provided

me the chance to pursue my postgraduate studies and for giving me study leave during

the whole time of my studies.

Last but not least, I am very grateful to my parents, my wife and entire family for their

moral encouragement and support during the whole time of my study and preparation of

iv
this research paper. It is impossible to list all names, but in general I would like to thank

all who participated in this study. Be blessed all!

v
 TABLE OF CONTENTS

DECLARATION AND COPYRIGHT ............................................................................... i

CERTIFICATION ..............................................................................................................ii
DEDICATION ..................................................................................................................iii
ACKNOWLEDGEMENT ................................................................................................ iv
TABLE OF CONTENTS .................................................................................................. vi
LIST OF TABLES ............................................................................................................ ix
LIST OF FIGURE .............................................................................................................. x
ABBREVIATIONS AND ACRONYMS ......................................................................... xi
ABSTRACT .....................................................................................................................xii
CHAPTER ONE ..............................................................................................................xii
INTRODUCTION AND BACKGROUND TO THE STUDY ......................................... 1
1.1 Introduction ............................................................................................................. 1
1.2 Background of the problem ..................................................................................... 1
1.3 Statement of the Problem ........................................................................................ 3
1.4 Research objectives ................................................................................................. 5
1.4.1 General Objective .................................................................................................... 5
1.4.2 Specific Objectives .................................................................................................. 5
1.5 Research hypothesis ................................................................................................ 5
1.6 Significance of study ............................................................................................... 6
1.7 Scope of the Study................................................................................................... 6
1.8 Limitations of the Study .......................................................................................... 7
1.9 Organization of the study .................................................................................... 7
CHAPTER TWO................................................................................................................ 9
LITERATURE REVIEW ................................................................................................... 9
2.1 Introduction ............................................................................................................. 9
2.2 Theoretical literature review ................................................................................... 9
2.3.1 Institutional theory .................................................................................................. 9

vi
2.3.2 Principal Agent Theory ......................................................................................... 10
2.4 Empirical literal Review........................................................................................ 11
2.5 Conceptual Framework ......................................................................................... 15
2.6 Synthesis and Research Gap ................................................................................. 22
CHAPTER THREE .......................................................................................................... 24
RESEARCH METHODOLOGY ..................................................................................... 24
3.1 Introduction ........................................................................................................... 24
3.2 Research design ..................................................................................................... 24
3.3 Target population .................................................................................................. 24
3.4 Sampling technique and sample size determination .......................................... 25
3.6 Types of Data and Data Collection Methods ............................................................. 27
3.6.1 Primary Data ......................................................................................................... 27
3.6.1.2 Secondary Data .................................................................................................. 27
3.6.2 Data Collection Method ........................................................................................ 28
3.6.2.1 Questionnaire ..................................................................................................... 28
3.6.2.2 Interview..................................................................................................... 29
3.8 Reliability and Validity ......................................................................................... 31
3.8.1 Data reliability ....................................................................................................... 31
3.8.2 Data validity .......................................................................................................... 31
3.9 Ethical consideration ............................................................................................. 32
CHAPTER FOUR ............................................................................................................ 33
FINDINGS AND DISCUSSION ..................................................................................... 33
4.1 Introduction ........................................................................................................... 33
4.2 Preliminary Data Analysis .................................................................................... 33
4.2.1 Data Editing and coding ........................................................................................ 33
4.2.2 Response Rate ................................................................................................ 34
4.2.3 Reliability Test and validity test............................................................................ 34
4.4 Descriptive statistics analysis ................................................................................ 38
4.4.4 The accountability in public procurement audit ...................................................... 48
4.5 Pearson correlation analysis .................................................................................. 49

vii
CHAPTER FIVE .............................................................................................................. 57
SUMMARY, CONCLUSION AND RECOMMENDATIONS ...................................... 57
5.1 Introduction ........................................................................................................... 57
5.2 Summary ............................................................................................................... 57
5.3 Conclusion............................................................................................................. 59
5.4 Policy Implication ................................................................................................. 62
5.5 Recommendations ................................................................................................. 63
5.6 Areas for further research ...................................................................................... 64
Appendix 1- Questionnaires ............................................................................................. 73

viii
 LIST OF TABLES

Table 3.1 Sample size determination ............................................................................... 26

Table 4.1: Response rate .................................................................................................. 34

Table 4.2: Reliability and Validity constructs .................................................................. 35

Table 4.3: Gender of respondents .................................................................................... 36

Table 4.4: Age of Respondents ........................................................................................ 37

Table 4.5: Education level of respondents ....................................................................... 37

Table 4.6: Working experience of respondents ................................................................ 38

Table 4.7: Descriptive statistics of Integrity .................................................................... 39

Table 4.9: Descriptive statistics of resources for auditing ............................................... 41

Table 4.11: Descriptive statisticstraining to auditor......................................................... 43

Table 4.12: Descriptive statistics for Time interval of training ....................................... 44

Table 4.13: Descriptive statistics for competence of auditor ........................................... 45

Table 4.14: Descriptive statistics for Skills of auditor ..................................................... 46

Table 4.15: Descriptive statistics for Audit sampling ...................................................... 47

Table 4.16: Descriptive statistics for risk consideration .................................................. 47

Table 4.17: Descriptive statistics of accountability in public procurement audit ............ 48

Table 4.18: Relationship between audit standard/ ethics and accountability ................... 51

Table 4.19: Relationship between capacity building programs and accountability ......... 54

Table 4.20: Relationship between technical audit factors and accountability ................. 56

ix
 LIST OF FIGURE

Figure 2.1 Conceptual Framework ................................................................................... 15

x
 ABBREVIATIONS AND ACRONYMS

AVE - Average Variance Extracted

CAG - Controller Auditor General

CBE - College of Business Education

MSCM - Master Degree in Supply Chain Management

Pes - Procurement Entity

PPA - Public Procurement Act

PPDE - Public procurement and disposal entity

PPRA - Public Procurement Regulatory Authority

SPSS - Statistical Package for Social Science

ZPPDA - Zanzibar Public Procurement and Disposal Authority

xi
 ABSTRACT

Public procurement is hailed worldwide as an important engine in public entities,

parastatal organizations and government agencies for acquisition of goods, service and
works of the right quality, quantity, and reasonable cost. However, deteriorating of
accountability in public procurement auditing is another panorama linked to number of
factors in developed and developing countries. The general objective of this study was to
assess the factors affecting public procurement auditing towards ensuring accountability
using Zanzibar Public Procurement and Disposal Authority as the case study. The study
used two theories namely; the theories are Institutional Theory and Principal Agency
Theory. The conceptual framework was developed to reflect the specific objectives
mentioned in chapter one. Both dependent and independent variables are clearly
stipulated to show the relationship of variables. The data were collected using a
questionnaire and interviews. Data was analyzed by SPSS using correlation technique
for quantitative analysis. Descriptive statistics, reliability analysis and correlation
analysis were used to analyze and determine the keys factors and association in relation
to dependent variables. The study findings revealed that, there is strong correlation
between quality of audit report and accountability (r = 0.583), impact of training and
accountability (r = 0.695), time interval of training and accountability (r = .783), and
competence of understanding the best practices and accountability (r = 0.551), audit
sampling and accountability (r = 0.935), and risk consideration and accountability (r =
0.959). Furthermore, the study found that there is a moderate correlation between
integrity of auditing and accountability (r = 0.305) and skills of auditors and
accountability (r = 0.337). Therefore, the Authority should invest in capacity building by
providing the training related to public procurement auditing to auditors in order to equip
and upgrade them with new techniques and knowledge, also auditor should be aware on
risk auditing area and audit sampling techniques during public procurement auditing.

xii
 CHAPTER ONE

INTRODUCTION AND BACKGROUND TO THE STUDY

1.1 Introduction

This chapter comprises the background of the problem, statement of the problem,

objectives of the study, research hypothesis, significance, justification and organization

of the study.

1.2 Background of the problem

Public Procurement is hailed worldwide as an important engine in public entities,

parastatal organizations and government agencies in acquisition of goods, service and

works of the right quality, quantity, and reasonable cost (Thai, 2001). All over the world,

Governments are spending around 70% of their expenditure budget annually in public

procurement (Knight et al., 2012). This huge spending of taxpayers’ money has alarming

attention on auditing of the public procurement proceedings in order to safeguard public

assets and ensure value for money for each shilling spent in acquisition of good, service

and works (Basheka, 2009). In developing countries, public procurement is recognized

as an essential function in public service delivery (Basheka, 2008).

Over the past decades, deteriorating of accountability in procurement auditing is another

panorama linked to number of factors in developed and developing countries (Hunja,

2003). The accountability of procurement auditors and practitioners is not only

important because of the colossal amount of money involved in government

1
procurement but also it has social impact on service delivery to the public (Basheka,

2008). Lack of accountability may lead to eruption of unethical practices like corruption,

nepotism, conflict of interest and greed which have enormous and rippling effects that

subject public lives at risk (Bardhan and Mookherjee, 2006; Munzhedzi, 2016).

In Tanzania, billions of dollars of tax payers’ money, donor funds and grants are lost due

to corruption, fraud and non-compliance in public procurement proceedings every year

(CAG, 2009/2010, 2010/2011, 2011/2012). For the past 20 years Tanzania has recorded

a number of scandals in public procurement with red flag signals on lack of

accountability in public procurement system. For instance, the Richmond scandal in

2006 which cost the government around of Tshs 172 billion for purchasing supply

generators to provide electricity of 100 megawatts. The procurement of military radar in

2012 which cost the government around Tsh2.7 billion. Besides, the purchase of

consulate offices in Rome in Italy and the procurement scandals for constructions

involving the Bank of Tanzania (Mwarizo, 2013).

In compliance with PPA 2011, all procuring entities in Tanzania have to be audited.

Section 9 (i) of PPA 2011 mandated the PPRA to conduct an annual auditing for

compliance of procurement procedures and principles. The government of Tanzania

allocated about 60% of national budget for five consecutive years of 2015, 2016, 2017,

2018 and 2019 in development and recurrent projects. Therefore, it is indisputable fact

that procurement activities face public scrutiny due to the expenditure budget allocated

to respective public entities in order to assure adherence to public procurement pillars

and ethical manners. In this regards, it is true that accountability is a pillar in public

2
procurement to ensure value for money and auditing is vehicle that enforce PEs it (Asare

and Prempeh, 2016).

In Zanzibar, the public procurement and disposal of public asset Act of 2016 section 5

(a), (b), (c), (d) and (j) mandated the public procurement and disposal authority (PPDA)

to audit all procuring and disposing entities in compliance to principals and pillars of

public procurement. Despite the fact that Zanzibar and Tanzania mainland use different

procurement laws and regulations but they share the common public procurement

auditing procedures. Zanzibar is at recognition and early stage of public procurement

auditing functions after reform and creation of public procurement and disposal authority

(PPDA) in 2016. The authority came into operations in early 2017.

Zanzibar cannot be excluded as one of the area having weak public procurement system

and non-adherence to public procurement pillars of transparency, accountability, and

value for money. Therefore, it was deemed necessary to investigate the factors which

affect the public procurement audit towards ensuring accountability in order to get new

insight and holistic picture in Zanzibar.

1.3 Statement of the Problem

Public procurement audit is an evolving practice in Zanzibar. Public procurement audit

has direct and positive influence on the way organizations and people in the public

service discharge their responsibilities. Moreover, public procurement audit add value

not merely by analyzing and reporting what has happened after the event but also by

3
being forward looking, identifying lessons to be learnt and disseminating good practice

(Etse and Asenso-Boakye, 2014).

Despite the fact that Zanzibar has established auditing authorities such as CAG and

ZPPDA towards ensuring compliance on accountability to the procurement entities but

still auditing authority have low assurance to guarantee accountability to the

procurement entities. ZPPDA are mandated regime responsible to conduct auditing to

ensure adherence to pillars of public procurement including accountability and value for

money. However, compliance to those pillars is far from reality (CAG, 2018).

The CAG reports indicate several factors that fueled the problem of deteriorating

accountability among auditors including the lack of technical knowledge on auditing

methodologies, lack of effective capacity building and budget constraints to conduct

intensive and extensive examination in procurement and disposing entities (CAG, 2018).

Francesco and Edwin (2018) portrayed that an increasing the dissemination of audits can

be very important for improving the audit systems to reduce corruption and ensure

accountability. On the other hand, Rahman (2015) outline the most factors that hinder

Procurement Auditing includes lack of strategic planning, insufficient evidence of audit

work, lack of skilled human resource, delayed issue of audit reports, poor presentation of

audit report, weak monitoring as well as follow up and weak management.

Despite the reforms and initiatives to reinvent the procurement auditing in Zanzibar, the

procurement auditing are affecting by many internal and external factors. Also

regardless of the compelling link between procurement auditing and accountability, few

4
studies have addressed it. Thus this study sought to investigate the factors affecting

public procurement auditing towards ensuring accountability using the case study of

ZPPDA.

1.4 Research objectives

1.4.1 General Objective

The general objective of this study is to assess the factors affecting public procurement

auditing towards ensuring accountability at Zanzibar Public Procurement and Disposal

Authority (ZPPDA).

1.4.2 Specific Objectives

i) To identify auditing standards affecting public procurement auditing towards

ensuring accountability.

ii) To examine capacity building programs affecting Public procurement auditing

towards ensuring accountability.

iii) To determine technical audit factors affecting public procurement auditing

towards ensuring accountability.

1.5 Research hypothesis

H1: Alternative hypothesis will be accepted if auditing standards affect Public

procurement auditing towards ensuring accountability.

5
H2: Alternative hypothesis will be accepted if capacity building programs affect Public

procurement auditing towards ensuring accountability.

H3: Alternative hypothesis will be accepted if technical audit factors affect Public

procurement auditing towards ensuring accountability.

1.6 Significance of study

This study is a cornerstone of challenges impeding public procurement auditing in

Tanzania as it provides a better understanding to the practitioners in the issues of

accountability by knowing fundamental factors that affect the public procurement

auditing towards ensuring accountability in public procurement process during

acquisition of goods, service and works in PDE’S

In addition, the audit is an aid instrument to management and public institutions towards

ensuring good governance by providing the public with transparent information on the

public expenditure which consume their tax payer’s moneys. Also the study helps to

increase the knowledge to the researcher about procurement and supply chain audit and

therefore improve know-how in applying procurement audit in the field of public

procurement systems.

1.7 Scope of the Study

The purpose of this study was to assess factors affecting Public procurement auditing

towards ensuring accountability at Zanzibar Public Procurement and Disposal Authority.

The study used a sample of 80 respondents to investigate the auditing standard, capacity

6
building programs, technical audit which affect public procurement auditing to ensure

accountability.

1.8 Limitations of the Study

First, the public procurement auditing is the multidimensional terms that involve verities

of constructs. Focus on three independent composite variables limit the scope of this

work and is one of the major weaknesses of this study. However, researcher used many

sub-variables for each composite variable in order to suffice the multidimensional

problem of the composite variables.

Second, this study was conducted in the mid of outbreak of COVID-19. This limited the

researcher from collecting data as planned in the research schedule and lead to some

delay on the writing of this research report. The researcher took all the necessary

preventive measures proposed by the Ministry of Health including wearing mask when

he approaches the respondents. Furthermore, the researcher was also able to conduct an

online interview with some respondents in order to overcome the above challenge. These

initiatives helped the researcher to collect adequate and reliable data for this study.

1.9 Organization of the study

This Research report is organized into five main chapters. Chapter one entails the

introduction of the study. It includes the background of the problem, problem statement,

and research objectives including the general objective and specific objectives, research

hypothesis, significance of the study, limitation of the study and definition of key terms

used in the study. Chapter two provides both theoretical literature review and empirical

7
literature review. Also, it presents the conceptual framework, variables descriptions and

research gap. Chapter three presents the methodological part of the research. The chapter

outline the research design, sampling techniques, population and sample size, data types

and data collection instruments, data analysis, reliability and validity, and ethical

consideration in research. Chapter Four presents findings, analysis and discussion of

findings of the study; and Chapter Five presents summary, conclusion and

recommendations of the study.

8
 CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

This chapter presents the literature review related to the topic under the study.

Specifically, it reviews both theoretical and empirical literature conducted by other in the

context of public procurement auditing and accountability.

2.2 Theoretical literature review

This study was guarded by two theories namely: - Institutional Theory and Principal-

Agent Theory.

2.2.1 Institutional theory

Institutional theory is an old theoretical lens used in public procurement studies (Flynn

and Davis, 2014; Spiller, 2008). The institutional theory uses the institutional

characteristics, principles and behaviors. According to Scott (2004), the institution is

characterized by three principals including regulatory, normative and cultural cognitive

factors.

The regulatory component is a central pillar of institutional theory which comprises the

public procurement legislations, regulations, procedures and rules that governs the

public procurement auditing process. The regulatory framework is governed by the

regulatory regimes. The normative pillar focus on the norms, values and ethical

9
standards that enforce compliance of accountability in auditing process. The cultural

cognitive base on the cultural belief of practitioners which influences the compliance

level in auditing standards.

Furthermore, the institution theory emphasized on competence of staff to achieve the

accountability function. Failure to consider staff professional qualifications and

capabilities always result non-compliance of public procurement pillars. The theory was

therefore important in explaining two institutional arrangements (standard and

competence) responsible for effective implementation of and compliance with public

procurement pillars such as accountability (Mrope, 2018). Once again, the theory

supports the first and second independent variable of the study namely auditing standard

and competence of staff.

2.2.2 Principal Agent Theory

The Agency theory was proposed by Berle and Means (1932) to explain the impact of

separating ownership and control in modern corporations (Jensen & Meckling, 1996). In

an article titled ‘Agency Theory and the Role of Audit’ published by Audit and

Assurance Faculty of Institute of Chartered Accountants in England & Wales it was

expressed that such relationship means the arrangement that exists when one person or

entity (called the agent) acts on behalf of another (called the principal).

An audit is of value to a variety of stakeholders to engender trust, accountability and

confidence, but for many different purposes, which do not fit into the simple agency

10
model. Audits serve a fundamental purpose in promoting confidence and reinforcing

trust, transparency, accountability in purchasing and financial information.

Therefore, in this research report, Principal-Agent concept of relationship is applied here

with the relationship to the procurement entities and the public servants, where the

watchdogs (auditors) provide independent objective assessments of the agents'

performance (Gailmard, 2012).

2.3 Empirical literal Review

This part provides review of various related studies which were carried out in the past

period. Mugenda (2008) argues that empirical literatures give the researcher knowledge

on what have been done by other scholars in order to avoid unnecessary and

unintentional duplication. More importantly it helps the researcher to support the

framework within which findings were interpreted. This section reviews previous local

and foreign studies concerning the public procurement audit.

Lukman (2016) conducted a study on public procurement auditing in Bangladesh:

Current State and Challenges. The objectives of the study were to analyze procurement

procedures in public institutions in Bangladesh and identify the loopholes and challenges

that stand against effective procurement and thus effective audit of procurement. This

study provides the following recommendations; in order to have an effective

procurement, auditing must improve the skills of auditors through proper training,

adequate risk assessment, close monitoring of audit teams and allowing adequate time

11
for field audit. It is also necessary to amend the provisions that are not clear and

comprehensive one.

Salehi et al. (2008) conducted study on factors affecting quality of Audit in Iran. The

study acknowledges the positive association between audit quality and audit firm size in

existing literature. The study recommends that auditing regulatory regimes need to

ensure the rules and regulation that govern auditing process in the country are neutral

and allow auditor to explicitly report what they found during the auditing process. Also

the study recommends that for huge organization which involved in multi projects and

consume a lot of taxi payer’s money, should be audited by several experienced and

qualified auditing members in order to reduce some interference from top management

to the auditors.

Wambui (2015) conducted a study in Kenya concerning the factors affecting effective

procurement auditing of CDF projects using a case study of Kiharu Constituency. The

study recommends that the government should employ professional auditors to

undertake public procurement audit. Also, the government should conduct regular

training to equip the auditors with necessary technical skills to ensure effectiveness of

public procurement audit. Furthermore, the government should enact laws to regulate

procurement functions and outline clear procedures to be followed by entities in order to

offer auditors platforms to benchmark and objectively base their audit findings.

Njeri (2018) conducted a study in Kiambu country, Kenya titled the influence

of procurement process audit on procurement performance in public health facilities. The

12
study determines the effect of reporting, internal auditor and external auditors on the

procurement performance. The study recommends that auditing function in procurement

is pervasive instrument for the success of organization. The organization can improve

their performance through working on the raised issued elaborated in auditing report.

Corrective action should be implemented based on the suggestions to improve the

purchasing function, reduce fraud and enable cost savings.

Loiacono and Muhumuza (2018) conducted a study about the impact of procurement

audit and compliance monitoring on accountability and public procurement performance

in Uganda. This study recommends that, Public procurement and Disposal Authority

should emphasize on the audit reporting process for the purpose of effective

dissemination of information to key stakeholders. This can reduce the irregularities in

procurement entities and increase accountability to auditors.

Mwarizo (2013) wrote about the contribution of procurement audit in enhancing ethical

and compliant procurement practices: a case of Sokoine University of agriculture (SUA).

The researcher found that the procurement audit has enhanced performance of

procurement activities with the highest degree of best practices. Accountability of the

procurement officials explained to be the most challenging issue such that late payment

of suppliers was explained as lack of accountability of procurement officials and most of

the suppliers or contractors and service providers complained on the payments system at

the University. The researcher recommend that Public procurement regulatory authority

(PPRA) has to take action on recommendation which are given after public procurement

audit that remain unimplemented. Also, the knowledge can be provided to those

13
important stakeholders of the procurement activities by conducting seminars within the

University.

Mzenzi and Gaspar (2015) conducted the study on external auditing and accountability

in the Tanzanian local government authorities. The study found that external auditing

had marginally contributed to the enhancement of accountability within the Local

Government Authorities. The study recommends that accounting officers from LGAs

should be in front line to implement the recommendation and information provided by

external auditors concerning the auditing functions in their organization to foster the

accountability. Furthermore, the legal framework and policies should be in line with the

auditing activities in LGAs in order to enhance the accountability and good governance

in public entities.

The study conducted by Ali (2017) about the role of good governance practices in

enhancing service delivery in public institutions in Tanzania; the case study of the

Tanzania electric supply company ltd. The study recommended that, to improve service

delivery at TANESCO, the management of TANESCO should ensure that all

TANESCO staff are aware of the principles of good governance and adhere to them in

their day to day activities. It was suggested, TANESCO, to pay attention to staff and

human resources development strategies with appropriate training packages to enhance

knowledge of good governance. For instance, TANESCO should have competent and

adequate internal auditors who should oversee the procurement and management

14
activities and recommends based on the existing laws and regulations to avoid

unnecessary deviation.

2.4 Conceptual Framework

Mugenda (2008) defines a conceptual framework as the main structure that gives the

research its form and shape and holds together all the elements in the logical

configuration. Figure 2.1 below presents the conceptual framework of the study.

Figure 2.1 Conceptual Framework

Independent variables Dependent variable

Auditing standards
• Integrity
• Procedure of Auditing
Accountability in
• Resources for auditing
• Quality of auditing procurement auditing
report
Capacity building program  Efficiency auditing
• Impact of training to
auditor  Value for Money
• Time interval of
training
• Competence and
• skills of understanding
the best practices
Technical Audit factors
 Audit sampling
 Risk consideration

Source: Researcher construct (2020)

15
2.5 Review of Conceptual Variables

The explanation of study variables - both independent and dependent are conducted in

line with the conceptual framework depicted in the in Figure 2.1 above.

2.5.1 Auditing standards

The auditing standards are provided in carrying out audits of public sector organizations

and their programmes as well as code of ethics to covers the ethical requirements of

government auditors, including their professional obligations. The explanation of the

indicators taken in the context of the present study in order to measure the variables as

presented below:-

a) Integrity:

The staff assigned to conduct the audit should collectively possess adequate professional

proficiency or competence for the tasks required. Moreover, auditors have a duty to

adhere to high standards of behaviour or integrity (honesty, fairness, truthfulness) in the

course of their work and in the relationship with the audited bodies.

Integrity are the moral principles or values that guide officials in all aspects of their work

(Cox et al., 2001). It is a moral principle that governs a person’s behaviors or the

conducting of an activity and mentioned as one of the main challenges which affect the

accountability and performance of auditing functions (Al Momani and Obeidat, 2013).

Gaa (2006) argue that integrity is not only about behaviors but includes thoughts,

language, reasoning, processes and judgment that informs the choices people make in

16
their daily lives that affect their own well-being and that of others. Auditors have

important role to detect the errors, malpractices in the public entities should be ethical

and should have enough degree of objectivity and faithfulness. Auditing as a profession

has its code of professional ethics that guide all auditors in performing their function in

order to reduce some conflict of interest from the management of the organization. The

ethical code of conduct includes responsibilities, public interest, integrity, due care,

professional and expert in the scope of service (Ardelean, 2013).

b) Procedure of Auditing:

Procedure of audit implies the audit process of ZPPDA, which incorporates the planning

stage, the field execution and the reporting phase. Proper planning and supervision;

reasonableness of criteria; sufficiency, reliability, and relevance of evidence to support

conclusions; and fairness and completeness in reporting have greater impact on

accountability of Public procurement audit.

The auditing procedure is one of the challenges which affect the accountability of

auditors in performing their auditing functions effectively. Previous scholars argue that

auditors’ expectations in detecting fraud and malpractices are guided by effective lay

down procedures in order to gathered appropriate and quality information and in contrast

lack or weak auditing procedures lead the auditor to collect poor information which

affect auditing process (Bharat, 2016).

17
Abdullatif (2016), state that although auditing profession exist long time, but public

procurement auditing is still a new profession in developing countries which lack

instruments like adequate and current procedures for operationalization.

c) Resources for auditing:

The strength of ZPPDA is its resource and the best utilization of it. Resource includes

human resource, time and budget sanctioned for the office. The study assessed the

adequacy of the resource. Since ZPPDA is a deadline oriented organization, it needs to

utilize the maximum benefit that it can derive from its resources. It may be reiterated

that ZPPDA has to audit and certify all accounts of PDE’s, in a given financial year.

Resource in auditing is an asset and personnel that enhance the auditing functions to be

performed on time and per the required standards. Several previous studies mention in

adequate resource as one of the main challenge that impeded the performance of auditing

activities for the auditors in the public auditing activities (Zahmatkesh and Rezazadeh,

2017).

The external auditors should be give the office for performing his/her activities as well

the transportation and enough budget to facilitate his activities and avoid being

manipulated and given some favor from the management of the public entities in which

he/she is auditing. According Olalla and Castillo (2002), auditors not only need a space

for his functions but he also need other kind of resource like money, minutes (time) and

man power to help him/her in some auditing activities.

18
 d) Quality of auditing report:

The quality of auditing report reflects the quality of overall auditing work that was

conducted in public entity. In recent times, quality audit reports have been used an

instrument to give stakeholder confidence on the procurement function performed in

public entities if they are compliance to public procurement laws and regulations

(Mareque et al., 2015).

Nevertheless, audit practitioners and scholars had devoted attention on improving public

confidence via close calls in devising means of enhancing the quality of audit report

produced. However, the issue of quality audit report has been one of the major concerns

weakness in auditing functions performance in developing countries (Kueppers and

Sullivan, 2010).

2.5.2 Capacity building

Capacity building helps in the enhancement of professional expertise of the workforce

involved in the accountability chain. Capacity building programs facilitated by ZPPDA

would enable auditor to increasing competence in auditing by reviewing the auditing

standards in line with the accepted local and international norms.

a) Training to auditor:

Auditors like any other personnel’s need to update and increase their abilities for

increasing auditing performance. Evidence suggest that training is one of the main

learning instrument that change the behaviors’ and working practices of auditors as well

19
increase their skills in performing their auditing exercise (Drogalas et al., 2017; Messier

Jr et al., 2011).

One the other side, it well known lack of training and workshop for auditors lead them to

perform poor works which foster the corruption and fraud in the public office

(Svanström, 2016). Bedard et al. (2003) argue that as when the auditor lack training lead

to loopholes for unethical public officer to used modern strategies and techniques of

using public assets and taxi payer’s money.

b) Time interval of training:

The time gap between one training and another is one of the factors that affect majority

of the auditors in performing their auditing exercise as majority of the auditor claim to

stay to long without attend any training for building their professionals (Foster et al.,

2015).

According Al-Mzary et al. (2015), auditors need to attend training regularly and

frequently in order to update them with advanced knowledge and technology so as to

improve their abilities and skills in their activities which are dynamic in nature.Thabet

(2017) argue that the higher the level of training for the auditor, the greater the

professional experience and ability to detect errors and distortions which implies that

there is positive training interval, number of training per year and performance of

auditors in auditing exercise.

20
 c) Competence and skills:

Competence is the degree of knowledge, ability or skill and work attitude and individual

attributed that auditor possess and enable to perform his/her activities (Pickett, 2000).

Auditor Competence and skill are expertise acquired through professional knowledge

and training (Palmer et al., 2004). Each auditor must fulfill certain requirements to

become an auditor in terms of profession education from recognized universities (Seol et

al., 2011). Although majority of the auditors are educated in terms of school’s education

but that does not necessary means they were competent in their activities and most of

them lack the skills in performing their auditing task (Van Staden et al., 2013).

2.5.3 Technical Audit factors

The technical factors give the auditors a reference point, provide them with risk

assessment tools and ensure that the audit is executed in a methodical way to achieve the

audit specific outcomes. More specifically, the technical factors should lead to better risk

assessment and better use of the sample techniques.

a) Audit sampling:

Audit sampling is the process of applying an auditing procedures through selecting the

representative samples to be involved in the auditing process for less than 100 percent of

the items (Elder et al., 2013). Audit sampling is one of the most fundamental testing

procedures used to gather audit evidence, and it has undergone significant change during

the history of modern auditing. Previous studies proclaimed that determination of audit

sampling is one the impeding factor that affect the performance of auditing exercise

(Durney et al., 2014).

21
 b) Risk consideration:

The audit risk is one of the most critical challenges in audit activities, which determines

the auditor’s opinion regarding the reliability of final auditing reporting. The audit risk

determines the probability of the auditor’s error which may occur in the verification of

reliability of the financial statement (Sabauri, 2018). The risk consideration is one of the

challenge that affect auditors and their accountability in auditing activities. For instance,

material inaccuracies and discrepancy may occur during auditing through either adding

of omitting some figures and lead to wrong interpretation of results and reporting (Dai

and Li, 2016). This affects the overall performance of auditing exercise.

2.5.4 Accountability

Accountability as a central theme of any procurement reform is the commitment to high

standards for professional conduct of the procurement auditor involved in public

procurement auditing. To be accountable means adherence to principles; good conducts

of suppliers and contractors; fairness and competition, having clear chain of

responsibility together with effective control mechanisms, handling complaints from

suppliers, public review and scrutiny of procurement actions (Nyamori et al., 2017).

2.6 Synthesis and Research Gap

Wambui (2015) conducted a study in Kenya concerning the factors affecting effective

procurement auditing of CDF projects using a case study of Kiharu Constituency. The

study found that necessary technical skills and training as the main factors affecting

auditor’s effectiveness in conducting procurement audited. The study however falls short

22
of looking at the relationship between factors influencing auditing such as auditing

standards and accountability as dependent variable. Furthermore, the study failed to

explain the relationship using quantitative methods such as regression which is one of

the most reliable techniques for predicting the relationship between dependent and

independent variables.

Keah (2013) conducted a survey of factors affecting public audit institutions

performance: the case of Kenya national audit office. The study found that inadequate

resources, lack of adequate training and development, inadequate knowledge on issues

such as corporate governance, professionalism, poses a challenge to a greater extent to

the overall performance. However, the study failed to explain how such factors can

affect the accountability performance of the auditors.

The reviewed literature envisaged above obviously has left a research gap that must be

filled. The main gap that exists is two-fold, first how various factors affect accountability

of the procurement auditors and secondly, the researcher intended to fill the gap by

knowing the relationship of each independent factor towards ensuring accountability.

This study therefore intended to fill the observed gaps that shall suffice to answer the

research hypothesis in an attempt to assess the contribution of procurement audit

towards attainment of accountability function in auditing.

23
 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction

This chapter includes the research designs, population, sampling technique, and sample

size. Also, the section consisted of data collection methods, data analysis, data reliability

and validity.

3.2 Research design

A cross-sectional design was employed to guide the study. The cross-sectional design

was deemed necessary for this study due to the following reasons: the cross-section

strategy was applied in which data collection process was conducted only once, the

cross-sectional was applied as an appropriate methods to provide information for

validating statistical tests and hypothesis, also cross-sectional method was preferred

approach for assessing the causal relationship of the constructs (Nardi, 2018).

3.3 Target population

Target population involves the total number of items from which information is desired

(Umair, 2018). The target population was extracted from ZPPDA headquarters in

Unguja and Pemba branch. In this particular case, the Zanzibar Public procurement and

Disposal Authority population comprised of 100 members extracted from procurement

24
units, capacity building, supplier register unit, auditors unit, complaint review unit, legal

unit and financial unit.

3.4 Sampling technique and sample size determination

3.4.1 Sampling technique

The researcher used Judgmental sampling techniques whereby respondents from the

respective units includes procurement units, capacity building, supplier register unit,

auditors unit, complaint review unit, legal unit and financial unit were selected on the

basis of experience and knowledge of respondents at Zanzibar Public Procurement and

Disposal Authority. Judgmental sampling is a non-probability sampling technique in

which only selected sample based on experience on knowledge on the specific area are

involved in the research study (Adam et al 2008).

The technique was used because purposively the researcher has to select respondents

with knowledge of procurement audit at the authority, which means not every worker in

the authority was aware of the procurement auditing. Judgmental sampling was

conducted by picking respondents with the knowledge of Public procurement auditing.

3.4.1 Sample size determination

A sample was taken at ZPPDA staffs as a small portion of a target population, while

sampling is selecting a given number of subjects from a defined population as are

preventative of that population (Thornhill et al., 2009). The sample size was determined

from the following formula developed by Yamane (1967).

25
 N
n = 1+N(e)2

Where: n = Sample size,

N = Population (ZPPDA staffs)

e = Level of precision of sampling of error which is 5%

100
Therefore: n = 1+100(0.05)2 ; n= 80

Then the sample size was 80 respondents from the Zanzibar public procurement and

disposal authority which used to represent the population at the ZPPDA.

Table 3.1 Sample size determination

Section Population Sample size Percentage

(80/100)
Management 15 12 15.0
Procurement unit 4 3 3.7
Capacity building unit 15 12 15.0
Supplier register unit 11 9 11.3
Monitoring/auditors Unit 30 24 30.0
Complaint review unit 12 10 12.5
Legal unit 10 8 10.0
Finance department 3 2 2.5
Total 100 80 100%

26
3.6 Types of Data and Data Collection Methods

3.6.1 Primary Data

In this study primary data was collected through questionnaire and interview as an

instrument for collecting primary data. Primary data are first-hand information data

collected specifically for the research project being undertaken (Saunders, 2011).

Specifically, the researcher collected information in line with three specific objectives.

The information related to auditing standards affecting public procurement auditing

processing towards ensuring accountability. Information related to capacity building

programs affecting public procurement auditing towards ensuring accountability and

information on technical audit factors affecting public procurement auditing towards

ensuring accountability. A 1-5points Likert scale was used to determine the level of

agreement/disagreement against the statement, which means 1 represent strongly

disagree, 2 represent disagree, 3 represent neutrals, 4 represent agree, 5 represent

strongly agree. These techniques help the researcher in such a way that they can catch

the relevant information from the field by asking respondents their opinions to help the

study in the process of data analysis.

3.6.2 Secondary Data

Secondary data in this study was used to support the literature part of this study

including making the argument in the background of the problem, to support the finding

with others study and comparison making research gape. This also helped the researcher

to inform if there were other studies of this nature previously conducted. The researcher

27
used mainly a documentary review as a major source of secondary data. In this study a

key documents relating to procurement auditing of ZPPDA was reviewed and used to

support this study and specifically the researcher looked on auditing report and

performance report of ZPPDA in order to obtained information concerning auditing

standard, capacity building program and technical auditing factors.

3.6.3 Data Collection Method

3.6.3.1 Questionnaire

The researcher used questionnaire as an effective data collection instrument when the

study falls in a quantitative continuum. The structured questionnaire was developed in a

Likert scale format of 1 to 5. The item for each construct was extracted from reliable

research that meets the reliability of 0.899 and 0.898056 and validity of 0.46743 as

stipulated in the table 4.2. The researcher used questionnaire to collect data from the

middle and lower level employees who were involved in this study. Questionnaire is the

most used instrument for data collection when the researcher intends to collect primary

data. The questionnaire gives a respondent more time to answer the questions. The

questionnaire is an appropriate method for data collection as it provides ample time for

the respondents to answer the questions and use minimum expense. The response level

in this method of data collection was 90.66% whereas 68 out of 75 questionnaires were

collected for data analysis.

28
3.6.3.2 Interview

Five (5) interviewees were selected from head of departments. The response level in this

method of data collection was 80% whereas 4 out of 5 interviewees were obtained for

interview with researcher. The interview was used to get information from ZPPDA

where head of sections were interviewed. The interview schedule was used as a

reference during the face to face conversation with the respondents where all questions

was drawn from it as stipulated in Appendix II. The interview method was used by

researcher to supplement the questionnaire method where the researcher was able to ask

the respondents and provide their opinion, views and ideas concerning the study at

ZPPDA. The questions were asked in both language (Swahili and English) depend on

the convenience of the respondents.

3.6.3.3 Documentary review

Its note that documents related to a particular project, topic or product from a variety of

sources can be a very useful additional data collection (Chakrabarti, 2009). Documentary

review qualify for qualitative investigation involving the study of written

communications that are found in the field setting. The documents, both historical and

contemporary are rich source of data for social research (Gall, Borg, & Gall, 2014). The

researcher critically examined and took notes on important information from those

documents. The researcher used documentary review due to the fact that, documents

prove valuable not only because of what can be learnt directly from them but also as

stimulus for paths of inquiry that can be pursued only through interviewing. In this study

29
a key documents relating to procurement auditing was reviewed and used to support this

study. The documents used included procurement auditing reports of ZPPDA both value

for money auditing report and compliance report, Controller and General auditor’

reports.

3.7 Data Analysis

In this study, the researcher used descriptive statistics to explain the demographic part of

the respondents including the age of the respondents, gender of the respondents,

education level, experience and positions. The descriptive statistics as preliminary data

analysis was also used for main variables used before running the correlation. The

descriptive statistics explained the characteristics of the sample, such as mean, standard

deviation, range, frequency and percentage. Also those data collected by interview was

analyzed by content analysis.

The relationship between variables in each objective was measured by using Pearson

correlation from SPSS version 25 for quantitative data, whereby the researcher analyzes

the correlation between each variable in specific objective with accountability.

i) Auditing standards affecting public procurement auditing towards ensuring

accountability. This objective was analyzed by Pearson correlation and the

finding from table 4-18 indicated that there is relationship between auditing

standard and accountability in procurement auditing.

ii) Capacity building programs affecting Public procurement auditing towards

ensuring accountability. This objective was analyzed by Pearson correlation and

30
 finding from table 4-19 indicated that there is relationship between capacity

building and accountability in procurement auditing.

iii) Technical audit factors affecting public procurement auditing towards ensuring

accountability. This objective was analyzed by Pearson correlation and the

finding from table 4-20 indicated that there the relationship between technical

auditing factors and accountability in procurement auditing.

3.8 Reliability and Validity

3.8.1 Data reliability

The data reliability in this study showed to 0.899 of Cronbach alpha and 0.898056 of

composite reliability which indicated strongly data reliability as stipulated in the table

4.2. The reliability of the data in this study was evaluated using Cronbach alpha, as well

composite reliability in which data quality was measured to determine internal

consistency (Abowitz and Toole, 2010; Hair et al., 2009). Data reliability act as

collection of techniques aiming at ensuring the consistency of scale data (Drost, 2011).

3.8.2 Data validity

The data validity in this study showed to 0.46743 of Average variance extracted (AVE)

which indicated strongly data validity as stipulated in the table 4.2. Data validity are in

line with the accuracy of an instrument to measure what is intended to be measured

(Brains and Manheim, 2011). The data from the study in terms of validity was calculated

using a range of 95% (0.05) confidence level. In addition, to ensure content validity the

31
questionnaires were distributed to the practitioners using the pilot study conducted

previously to assess the quality of the questionnaires. All questions which are ambiguous

were removed by the researcher before distribution of final version of questionnaires to

the respondents. Furthermore, the Average variance extracted (AVE) were used to assess

the convergent validity (Hair et al., 2009).

3.9 Ethical consideration

In line with argument of Israel and Hay (2006) the research take the following measures:

First, the researcher request an approval a letter of introduction from postgraduate

studies, CBE to support the researcher during the data collection. Second, the researcher

requests the management of Zanzibar Public procurement and Disposal authority to issue

the internal memo letter to the respective departments that was involved in this study for

assuring them before the researcher avail them. Third, the research assured the

respondents on the confidentiality of their responses before given them the

questionnaire. These rigorous measures taken by researchers ensure the ethical issues are

considered in the whole process of data collection process.

32
 CHAPTER FOUR

FINDINGS AND DISCUSSION

4.1 Introduction

The chapter presents the findings of the study. It consisted preliminary data analysis,

presentation of demographic analysis, descriptive analysis and Pearson correlation

analysis in line with specific objectives.

4.2 Preliminary Data Analysis

4.2.1 Data Editing and coding

Editing of data is crucial for any research in order to ensure data collected are accurate,

precise, valid and coded correctly. It is a pre-requisite for content validity (Kothari,

2012). For this study the editing of data was conducted to delete all errors, emissions in

the questionnaires through unwise methods. Coding of data involve the process and

procedures of assigning special symbols or numerals for all answer in a questionnaire.

For every data analysis which involves using SPSS coding is crucial to ensure responses

are categorized in similar groups for easy analysis (Kothari, 2012). For the purpose of

this study all variables are coded using special symbols starting with ‘V100’representing

demographic information of respondents, ‘V200’- ‘V209’ representing variables for

independent variables and ‘V2010’ representing variables for depend variable. SPSS

version 25 was used for the preliminary data processing.

33
4.2.2 Response Rate

The researcher has managed to collect 68 completed questionnaires out of 75 which

make a response rate of 90.7% and 7 questionnaires equivalent to 9.3% was not returned

to the researcher on time and rejected for further analysis as shown in the table 4.1. Also

a researcher has conducted interview with 4 interviewees out of 5 interviewees who have

been managed which make a response rate of 80%. This is in line with Babbie (2004)

who emphasizes that the response rate of 50% are acceptable for further analysis where’s

60% is good, and 70% is very satisfactory. In this case, a response rate of 90.7% is the

most satisfactory for analysis.

Table 4.1: Response rate

Categories Frequency Percentage

Returned questionnaires 68 90.7
Non-returned questionnaires 7 9.3
Total distribution 75 100.0

Source: Researcher’s Field data (2020)

4.2.3 Reliability Test and validity test

Determining reliability and validity of the questionnaire is an important step for

conducting multivariate analysis like regression test in the study. Table 1 indicates the

reliability and validity analysis. According to Hair et al. (2009) Cranach’s alpha is the

most common reliability coefficient which estimates internal consistency by determining

how all items on a test relate to all other items where “CA> 0.6 indicate adequate and

composite reliability CR > 0.7 indicate good. Based on the reliability analysis all

34
constructs have Cronbach’s alpha value greater than 0.6 which indicate the internal items

are accurate and good. Furthermore, all variables have composite reliability above the

required cut-off which is 0.6. This support that, the questionnaires was reliable and

accurate for this study. On the other side, the validity of the constructs measured using

Average Variance Extracted (AVE) for all items. According to Malhotra (2010) the

AVE of 0.4 and above are adequate for multivariate analysis. In this study all variables

have AVE value of 0.4 and above. On the basis of reliability test, the scale used in this

study was reliable to capture the constructs and could fairly represent opinions of other

respondents.

Table 4.2: Reliability and Validity constructs

Item Results
N 11
Average Variance Extracted 0.46743
Cranach’s alpha 0.899
Composite Reliability 0.898056

Source: Researcher’s Field data (2020)

4.3 Respondents’ Profile

This section entails the demographic information concerning the study; it provides the

general information of the respondents involved in this study including their gender, age,

education, and experience of the respondents.

35
4.3.1 Gender of respondents

This category was intended to determine the ratio of the gender involved in this study.

The findings show that 37 respondents equal to 54.4% were female and 31 respondents

equal to 45.6% were male. This ratio implies that the majority of respondents were

female gender who dominates the study compared to male respondents as presented in

table 4.3

Table 4.3: Gender of respondents

Categories Frequency Percentage

Female 37 54.4
Male 31 45.6
Total 68 100.0

Source: Researcher’s field data (2020)

4.3.2 Age of Respondents

This category was intended to determine the ratio of the age of respondent in this study.

The findings show that 4 respondents equal to 5.9% were aged 18-25 years, 19

respondents equal to 27.9% were aged 26-33 years and 22 respondents equal to 32.4 %

were aged 34-40 years and others were above 41 years and 33.8% respectively. This

result implies that the majority of respondents were aged between 34-40 years. Table 4.4

shows the descriptive analysis in terms of age of the respondents involved in the study.

36
Table 4.4: Age of Respondents

Categories Frequency Percentage

18-25 years 4 5.9
26-33 years 19 27.9
34-40 years 22 32.4
41 years and above 23 33.8
Total 68 100.0

Source: Researcher’s field data (2020)

4.3.3 Respondent’s highest education

Table 4.5 shows the education level of respondents involved in this study. The results

indicate that 9 respondent’s equivalent to 13.2% hold certificate and 18 respondents

equivalent to 26.5% hold diploma as their highest education level, 37 respondents

equivalent to 54.4% hold bachelor degree in diverse field and 4 respondents equivalent

to 5.9% hold master degree. The results indicate that data was extracted from the mature

respondents in terms of education level which gives more assurance to the researcher

about the validity and reliability.

Table 4.5: Education level of respondents

Categories Frequency Percentage

Certificate level 9 13.2
Diploma level 18 26.5
Bachelor degree 37 54.4
Master level 4 5.9
Total 68 100.0

37
4.3.4 Working Experience

This category was intended to determine the working experiences of the respondents

involved in this study. The findings show that 14 respondents equal to 20.6% had

experience between 0 to 5 years in their current position, 19 respondents equal to 27.9%

had experiences between 6 and 10 years, 18 respondents equal to 26.5% had experience

between 11 and 15 years and 17 respondents equal to 25% had experiences of 16 years

and above. Table 4.6 shows the descriptive analysis of the working experiences of

respondents involved in this study.

Table 4.6: Working experience of respondents

Categories Frequency Percentage

0-5 14 20.6
6-10 19 27.9
11-15 18 26.5
16 and above 17 25.0
Total 68 100.0

Source: Researcher’s field data (2020)

4.4 Descriptive statistics analysis

This section provides the descriptive statistics of the variables used in this study to get

the meaningful information of the variables. The study used descriptive statistics of

mean, standard deviation, standard error and rank for a description of constructs. The

descriptive analysis was analyzed in an arrangement of research objectives of the study

highlighted in chapter one as follow:

38
4.4.1 Auditing standards affecting public procurement auditing towards ensuring

accountability.

The first objective was to determine auditing standard affecting public procurement audit

in ensuring accountability. Audit standard construct involved four primary variables

including integrity, procedures of auditing, resources for auditing and quality of auditing

reports.

4.4.1.1 Integrity

The measurement of the integrity construct in Table 4.7, the mean scores and standard

deviation combined were computed. Among the items of integrity construct, V200cis

ranked number one in terms of contribution to the main factor(M= 4.49, SD=0.955),

followed by V200a (M= 4.40, SD= 0.936), V200b (M=4.35, S. D=1.045), and V200d

(M=4.25, S. D=1.164). This implies that use of resources is a significant dimension that

ZPPDA need to pay attention to when performing the auditing functions in order to

ensure accountability for the procurement and stock auditors.

Table 4.7: Descriptive statistics of Integrity

Code N Mean S.D S.E Rank

V200a 68 4.40 .936 .105 2
V200b 68 4.35 1.045 .117 3
V200c 68 4.49 .955 .107 1
V200d 68 4.25 1.164 .130 4

Source: Researcher’s field data (2020)

39
4.4.1.2 Procedure of auditing

The measurement of the construct of procedure auditing in Table 4.8, the mean scores

and standard deviation combined were computed. The items V200cis ranked number one

in terms of contribution to the main factor (M= 4.51, SD=.900), followed by V200b (M=

4.45, SD= .940), V200d (M=4.45, S. D= 1.018), V200a (M= 4.42, S. D= 0.106) and

V200e (M= 4.40, S. D= 0.936). The descriptive statistics indicate that all five items in

this construct are significant dimension to facilitate the effective procedures of auditing

of procurement and stocks in procurement and disposing entities by ZPPDA.

Table 4.8: Descriptive statistics of procedure of auditing

Code N Mean S.D S.E Rank

V201a 68 4.42 .952 .106 4

V201b 68 4.45 .940 .105 2

V201c 68 4.51 .900 .101 1
V201d 68 4.45 1.018 .114 3
V201e 68 4.40 .936 .105 5

Source: Researcher’s Field data (2020)

4.4.1.3 Resources for auditing

Resource allocation for auditing operation is paramount important if the PPDA want

accountability in the auditing procurement. This is supported by the descriptive statistics

provide in Table 4.9. The summated mean scores and standard deviation are as follows

in chronological factors: V202b (M=4.49, S. D= 0.955), V202e (M=4.45, S. D= 0.940),

40
V202d (M=4.41, S. D= 0.951), V202a (M=4.31, S. D= 1.074) and V202c (M= 4.25, S.

D=1.164).

Table 4.9: Descriptive statistics of resources for auditing

Code N Mean S.D S.E Rank

V202a 68 4.31 1.074 .120 4
V202b 68 4.49 .955 .107 1
V202c 68 4.25 1.164 .130 5
V202d 68 4.41 .951 .106 3
V202e 68 4.45 .940 .105 2

Source: Researcher’s Field data (2020)

4.4.1.4 Quality of auditing report

Table 4.10, the mean scores and standard deviation combined of five items were used to

measure the construct of quality of auditing report. V203e is ranked number one in terms

of contribution to the main factor (M= 4.56, SD= 0.840), followed by V203c (M= 4.54,

SD= 0.885), V203a (M=4.51, S. D= 0.900), V203d (M= 4.50, S. D= 0.941) and V203b

(M= 4.45, S. D=1.018). The descriptive statistics show that the quality of auditing

reports is vital dimension in audit standard construct. If PPDA intent to ensure

accountability in auditing process, quality of the report should not take for granted.

41
Table 4.10: Descriptive statistics of quality of auditing report

Code N Mean S.D S.E Rank

V203a 68 4.51 .900 .101 3
V203b 68 4.45 1.018 .114 5
V203c 68 4.54 .885 .099 2
V203d 68 4.50 .941 .105 4
V203e 68 4.56 .840 .094 1

Source: Researcher’s Field data (2020)

4.4.2 Capacity building programs affecting public procurement auditing towards

ensuring accountability.

The second objective was to determine capacity building program affecting public

procurement audit towards ensuring accountability. The capacity building program

involved four primary variables including impact of training to auditor, time interval of

training, competence and skills of understanding the best practices for conducting the

auditing activities.

4.4.2.1 Impact of training to auditor

The variables were assessed using the mean, standard deviation and standard error, table

4.11 shows that the summated mean score and standard deviation are as follow. First, is

V204e which is ranked number one in terms of contribution to the main factor (M= 4.59,

SD= 0.837), followed by V204c (M= 4.57, SD= 0.854), V204a (M= 4.56, S. D= 0.855),

V204b (M= 4.54, S. D= 0.899) and V204d (M= 4.51, S. D= 0.941). The descriptive

statistics indicate that all five items in this construct are significant dimension composite

42
variable of training to auditor. For effective auditing process and increasing the

accountability in auditing process, training is paramount importance for the auditor.

Table 4.11: Descriptive statisticstraining to auditor

Code N Mean S.D S.E Rank

V204a 68 4.56 .855 .096 3

V204b 68 4.54 .899 .101 4

V204c 68 4.57 .854 .095 2
V204d 68 4.51 .941 .105 5
V204e 68 4.59 .837 .094 1

Source: Researcher’s Field data (2020)

4.4.2.2 Time interval of training

Table 4.12 depicts the descriptive statistics of the items involved in this variable which

assess the impact of time interval of training on auditing effectiveness. The summated

scores are as follow: V205c (M= 4.55, SD= 0.870) is ranked number one on its

contribution to the composite variable followed by V205e (M= 4.53, SD= 0.886), V205d

(M=4.52, S. D= 0.941), V205a (M= 4.52, S. D= 0.856) and V205b (M= 4.49, S. D=

0.941).

43
Table 4.12: Descriptive statistics for Time interval of training

Code N Mean S.D S.E Rank

V205a 68 4.52 .856 .096 4

V205b 68 4.49 .941 .105 5

V205c 68 4.55 .870 .097 1
V205d 68 4.52 .941 .105 3
V205e 68 4.53 .886 .099 2

Source: Researcher’s Field data (2020)

4.4.2.3 Competence of auditor in understanding the best practices

Competence of auditor in understanding the best practices in auditing procedures

involved five items. Among the elements of competence, V206a is ranked number one in

terms of contribution to the main factor with summed score of (M= 4.54, SD= 0.856),

followed by V206b (M= 4.53, SD= 0.900), V206e (M=4.49, S. D= 0.941), V206c (M=

4.44, S. D= 0.939) and V206d (M= 4.34, S. D=1.078). This implies that competence is a

significant dimension of capacity building needed to auditors in order to ensure

adherence to accountability principles in performing auditing operations. Table 4.13

indicates the mean scores and standard deviation of the variable.

44
Table 4.13: Descriptive statistics for competence of auditor

Code N Mean S.D S.E Rank

V206a 68 4.54 .856 .096 1
V206b 68 4.53 .900 .101 2
V206c 68 4.44 .939 .105 4
V206d 68 4.34 1.078 .121 5
V206e 68 4.49 .941 .105 3

Source: Researcher’s Field data (2020)

4.4.2.4 Skills of understanding the best practices

The descriptive analysis indicates that the mean scores and standard deviation combined

were as follow. Among the items of skills construct, V207e is ranked number one in

terms of contribution to the main factor with summed score of (M= 4.50, SD= 0.968),

followed by V207d (M= 4.47, SD= 0.981), V207c (M=4.47, S. D= 0.941), V207b (M=

4.35, S. D=1.032) and lastly V207a (M=4.30, S.D=1.107) This implies that skills is a

significant dimension that Zanzibar Public Procurement and Disposal Authority need to

pay attention to when performing the auditing functions in order to ensure accountability

for the procurement and stock auditors. Table 4.14 provides the breakdown of

descriptive statistics.

45
Table 4.14: Descriptive statistics for Skills of auditor

Code N Mean S.D S.E Rank

V207a 68 4.30 1.107 .124 5

V207b 68 4.35 1.032 .115 4

V207c 68 4.47 .941 .105 3
V207d 68 4.47 .981 .110 2
V207e 68 4.50 .968 .108 1

Source: Researcher’s Field data (2020)

4.4.3 Technical Audit Factors constructs affecting public procurement auditing

towards ensuring accountability.

The third objective was to determine technical audit factors affecting public procurement

audit towars ensuring accountability. The descriptive statistics of mean, standard

deviation and standard error of auditing sampling and risk considerations of technical

audit factors as follows:

4.4.3.1 Audit sampling

The auditing sample involves five items from the questionnaire for its contribution to the

technical auditing factor. The items include V208b (M= 4.53, SD= 0.941), followed by

V208e (M= 4.51, SD=0.871), V208a (M=4.50, S. D= 0.842), V208d (M= 4.46, S.

D=0.941) and lastly V208c (M= 4.40, S. D=1.026). The descriptive statistics show that

auditing sampling is a one of the variable which is very crucial in contribution to the

technical factor composite variables for assessing the accountability during auditing

process. Table 4.15 provides the breakdown of descriptive statistics.

46
Table 4.15: Descriptive statistics for Audit sampling

Code N Mean S.D S.E Rank

V208a 68 4.50 .842 .094 3
V208b 68 4.53 .941 .105 1
V208c 68 4.40 1.026 .115 5
V208d 68 4.46 .941 .105 4
V208e 68 4.51 .871 .097 2

Source: Researcher’s Field data (2020)

4.4.3.2 Risk consideration

Determining risk in auditing process is inevitable as the risk can jeopardize the entire

auditing process. In this context, the descriptive statistics was used to assess the items

used in the questionnaire and it’s important to the main construct. The table 4.16 provide

the breakdown which show that V209c is the first item with highly contribution to risk

with (M= 4.55, SD= 0.855), V209d (M=4.54, S. D= 0.841), V209e (M=4.54, S. D=

0.92). Other items are V209b (M= 4.47, S. D= 0.954) and V209a (M= 4.43, S. D=

0.965).

Table 4.16: Descriptive statistics for risk consideration

Code N Mean S.D S.E Rank

V209a 68 4.43 .965 .108 5
V209b 68 4.47 .954 .107 4
V209c 68 4.55 .855 .096 1
V209d 68 4.54 .841 .094 2
V209e 68 4.54 .826 .092 3

47
4.4.4 The accountability in public procurement audit

Accountability in public procurement audit is the dependent variable in this study

measured using five items adopted from previous and reliable literatures. Table 4.17

provides the mean scores and standard deviation for all five items as follow. V210b is

ranked number one in terms of contribution to the main factor. The remaining items have

very close summed score of ranging from 4.60 to 4.55. This implies that accountability

is a significant dimension that Zanzibar Public Procurement and Disposal Authority need

to pay attention to when performing the auditing functions in order to comply with

public auditing pillars.

Table 4.17: Descriptive statistics of accountability in public procurement audit

Code N Mean S.D S.E Rank

V210a 68 4.56 .809 .090 5
V210b 68 4.64 .799 .089 1
V210c 68 4.59 .807 .092 3
V210d 68 4.60 .805 .087 2
V210e 68 4.57 .805 .091 4

Source: Researcher’s Field data (2020)

48
4.5 Pearson correlation analysis

4.5.1 Auditing standards affecting public procurement auditing towards ensuring

accountability.

Table 4.18 shows the analysis of the relationship between the various dimensions of

audit standard and accountability. The analysis shows that there is significant

relationship between integrity, quality of audit report and accountability (P≤0.05) expect

for resource of auditing and accountability (p>0.05).

There is weak correlation between procedures of auditing (r = -0.030), this findings

imply that there is no relationship between procedures followed by auditors when

observing for auditing evidence against accountability. These results are not in harmony

to those of Njeri (2018) which revealed that in auditing procedures is essential on public

procurement procedure in order to permit maximum competition for public contracts as

well as to ensure the best value for money. These findings were supported by an

interview with one of auditors in the study area which exhibited

‘’…We auditing the procurement item as per auditing procedures in order to

ensure the effectiveness of public procurement…’’ (ZPPDA staff, Interview,

March, 2020).

There is weak correlation between resources of auditing and accountability (r = 0.002),

this findings imply that there is no relationship between resources used by auditors when

conducting their work with accountability. These results were not similar to those of

Sahid and Kesuma (2016) which revealed that, Accountable public administration must

49
be supported by professional human resources, high public trust, adequate facilities

based on needs and competitive travel and good cooperation with other parties.

There is strong correlation between quality of audit report and accountability (r = 0.583),

this findings imply that there is relationship between quality of audit report and

accountability. These results were supported by principal-agent theory which states that

the potential goal conflicts exist between principles and agent, each party acts in its own

self-interest, information asymmetry frequently exists between principles and agents.

Therefore, due to asymmetric information the quality of audit report might hinder to the

accountability.

Additionally, the documents reviewed, especially the general auditors issued by ZPPRA

shows the ability of auditors in providing the report which covers all area in the authority

without bias and these reports have been provided to be disclosure for further steps

without relying on anyone side.

There is strong correlation between integrity of auditing and accountability (r = 0.305),

this findings imply that there is relationship between integrity and accountability. These

results are in harmony to those of Lukman (2016) which indicated that an effective

procurement auditing must improve the skills of auditors for the sake of accountability.

These findings were supported by interview which exhibited as:-

‘’… We have to insure staffs prepare a report that will be fair and avoid biased

by sending investigating team…’’ (ZPPDA staff, Interview, March, 2020).

50
 Table 4.18: Relationship between audit standard and accountability
Accountability Integrity Procedure Resources Report
Pearson
1 .305** .337** -.030 .583**
Correlation
Accountability Sig. (2-
.006 .002 .792 .000
tailed)
N 80 80 80 80 80
Pearson
.305** 1 .508** .613** -.038
Correlation
Integrity Sig. (2-
.006 .000 .000 .738
tailed)
N 80 80 80 80 80
Pearson
.337** .508** 1 .517** .583**
Correlation
Procedure Sig. (2-
.002 .000 .000 .000
tailed)
N 80 80 80 80 80
Pearson
-.030 .613** .517** 1 -.129
Correlation
Resources Sig. (2-
.792 .000 .000 .255
tailed)
N 80 80 80 80 80
Pearson
.583** -.038 .583** -.129 1
Correlation
Report Sig. (2-
.000 .738 .000 .255
tailed)
N 80 80 80 80 80
**. Correlation is significant at the 0.01 level (2-tailed).

Source: Researcher’s Field data (2020)

51
4.5.2 Capacity building program affecting public procurement auditing towards

ensuring accountability.

Table 4.19 shows the analysis of the relationship between the various dimensions of

audit standard and accountability. The analysis shows that there is significant

relationship between competency of understanding the best practices, training of

auditors, time interval of training, skills of auditors and accountability (P≤0.05).

The study findings as presented in Table 4.19 revealed that there is strong correlation

between impact of training and accountability (r = 0.695), these findings imply that there

is strong relationship between trainings of auditors and accountability of public

procurement. These results are similar to those of Lukman (2018) which revealed that in

order to have an effective procurement auditing must improve the skills of auditors

through proper training. These findings were supported by interview findings which

exhibited

‘’…There are a lot of seminars and workshop which helps us in expanding any

new skills required for an auditor as regarding technological development…’’

(ZPPDA staff, Interview, March, 2020).

The study findings as presented in Table 4.19 revealed that there is strong correlation

between time interval of training and accountability (r = .783), these findings imply that

there is strong relationship between time interval of trainings of auditors and

accountability of public procurement. Also these results are similar to those of Lukman

52
(2018) which supported on the training of auditors in ensuring effective procurement

auditing. These findings were supported by interview which exhibited

‘’…like any other institution our institution provides the room for employee’s

development, for instance this year one of our auditors returned from his 2 year

of postgraduate studies in the University of Dar es Salaam…’’ (ZPPDA staff,

Interview, March, 2020).

The study findings as presented in Table 4.19 revealed that there is strong correlation

between competence and accountability (r = 0.551), these findings imply that there is

strong relationship between competence of understanding the best practices and

accountability of public procurement. These results are similar to those of Mzenzi and

Gaspar (2015) which revealed that external auditing had marginally contributed to the

enhancement of accountability within the Local Government Authorities.

Additionally, from the documents reviewed, especially the procurement audit reports

issued by ZPPRA the competence of auditors have been indicated whereby the reports

they produce vary according to the discipline they intended to show in the authority. For

instance the procurement audit in 2018 was covered with some frauds which caused by

wrong posts of procurement amounts which in the near future will save the authority.

Therefore, the competence of auditors in understanding the best practices affects the

accountability of procurement audit.

The study findings as presented in Table 4.19 revealed that there is moderate correlation

between skills of auditors and accountability (r = 0.337), these findings imply that there

53
 is strong relationship between skills of auditors and accountability of public

procurement.

Table 4.19: Relationship between capacity building programs and accountability

Accountability Impact Interval Competence Skills

Pearson
1 .695** .783** .551** .337**
Correlation
Accountability
Sig. (2-tailed) .000 .000 .000 .002
N 80 80 80 80 80
Pearson
.695** 1 .708** .369** .190
Correlation
Training
Sig. (2-tailed) .000 .000 .001 .091
N 80 80 80 80 80
Pearson
.783** .708** 1 .443** .533**
Correlation
Interval
Sig. (2-tailed) .000 .000 .000 .000
N 80 80 80 80 80
Pearson
.551** .369** .443** 1 .342**
Correlation
Competence
Sig. (2-tailed) .000 .001 .000 .002
N 80 80 80 80 80
Pearson
.337** .190 .533** .342** 1
Correlation
Skills
Sig. (2-tailed) .002 .091 .000 .002
N 80 80 80 80 80
**. Correlation is significant at the 0.01 level (2-tailed).

Source: Researcher’s Field data (2020)

54
4.5.3 Technical auditing factor affecting public procurement auditing towards

ensuring accountability.

Table 4.20 shows the analysis of the relationship between the various dimensions of

technical auditing factors and accountability. Therefore audit sampling, risk

consideration and accountability are significant at (P≤0.05).

The study findings as presented in Table 4.19 revealed that there is strong correlation

between audit sampling and accountability (r = 0.935), these findings imply that there is

strong relationship between audit sampling and accountability of public procurement.

Therefore, considering samples in audit process increase accountability of procurement

audit; hence the remaining population inside the sample might be the right portion in

ensuring accountability.

The study findings as presented in Table 4.20 revealed that there is strong correlation

between audit sampling and accountability (r = 0.959), these findings imply that there is

strong relationship between audit sampling and accountability of public procurement.

These results are similar to those Wambui (2015) that, the government should employ

professional auditors to undertake public procurement audit in order to detect some risks

involved in procurement entities. These findings were supported by interview which

exhibited as:-

‘’… The government use employment committee in effective hiring qualified and

competent auditors to facilitate the auditing procedures in public

procurement…’’ (ZPPDA staff, Interview, March, 2020).

55
 Table 4.20: Relationship between technical audit factors and accountability
Accountability Risk Sampling
Pearson
1 .959** .935**
Correlation
Accountability
Sig. (2-tailed) .000 .000
N 80 80 80
Pearson
.959** 1 .960**
Correlation
Risk
Sig. (2-tailed) .000 .000
N 80 80 80
Pearson
.935** .960** 1
Correlation
Sampling
Sig. (2-tailed) .000 .000
N 80 80 80
**. Correlation is significant at the 0.01 level (2-tailed).

Source: Researcher’s Field data (2020)

56
 CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Introduction

This chapter is divided into four parts. The first part describes the summary of the study;

the second part presents the conclusion of the study where next to conclusion are the

recommendations of the study basing on the findings and the literature review as well as

the suggestions of area for further study.

5.2 Summary

The main objective of this study was to assess factors affecting public procurement

auditing towards ensuring accountability using the case of ZPPDA. The study involves

three specific objectives namely, identifying auditing standards affecting public

procurement auditing process towards ensuring accountability; to examine capacity

building programs affecting Public procurement auditing towards ensuring

accountability; and to determine technical audit factors affecting public procurement

auditing towards ensuring accountability.

The study involved two main theories which guide the entire study; those theories

include institutional theory and principal agency theory. The conceptual framework was

developed to reflect the specific objectives mentioned in chapter one. Both dependent

and independent variable are cleared stipulate to show the relationship. Furthermore,

hypothesis was introduced to test the relationship between the variables.

57
Using a cross - section method, primary data was collected using questionnaires and

interview. Where by 68 questionnaires were administered to respondents in which

questionnaires were returned which make a response rate of 90.7% and 4 interviewees

were administered which make a response rate of 80%. Data was analyzed using

Statistical Package for Social Science (SPSS) version 25 for quantitative paradigm. All

variables were rechecked for reliability and validity requirements using Cronbach alpha,

composite reliability and average variance extracted. All variables meet the required

threshold stipulated in previous literatures of correlation analysis like study of Hair et al.

(2006), Hair et al. (2009) and Creswell and Creswell (2017).

The findings revealed that, there is weak correlation between procedures of auditing and
resources of auditing to accountability whereby r = -0.030 and r = 0.002 respectively.
Furthermore there is strong correlation between quality of audit report and accountability
(r = 0.583), and a moderate correlation between integrity of auditing and accountability
(r = 0.305).

The study findings revealed that there is strong correlation between impact of training

and accountability (r = 0.695), time interval of training and accountability (r = .783), and

competence of understanding the best practices and accountability (r = 0.551). Also the

study findings indicate that there is moderate correlation between skills of auditors and

accountability (r = 0.337).

The study findings revealed that there is strong correlation between audit sampling and

accountability (r = 0.935), these findings imply that there is strong relationship between

audit sampling and accountability of public procurement. Also there is strong correlation

58
between audit sampling and accountability (r = 0.959), that means there is strong

relationship between audit sampling and accountability of public procurement.

5.3 Conclusion

5.3.1 Effect of auditing standards towards ensuring accountability

The study identifies the auditing standards factors which influence accountability in

public procurement auditing. In general, the study revealed that an auditing standard has

significant effect towards ensuring the public procurement auditing accountably.

Furthermore, three main factors were concluded to be the determinants of accountability

in public procurement auditing including resource of auditing, procedure of auditing, and

integrity. This is to say that the resources of auditing was not correlate with

accountability as the significant factor towards ensuring accountability in public

procurement auditing.

The results of this study are divulged in several previous studies which found that

resource allocation is a key determinant towards ensuring the accountability in public

procurement auditing. In common, sense if the auditor was provided with adequate and

preferential resource, poor performance should make him/her accountable and

answerable. On the other side, the auditors should adhere to the public procurement

auditing pillars which include being independent in performing his/her operation and

also should have adequate resources for his/her work in order to keep him away from

being bribed by the public procurement and disposal entities (Nashwa, 2005).

59
Furthermore, compliance to the auditing procedures instigated by the authority is one of

the important aspect discussed in previous literatures (Maung, 2018). The performance

of auditing process and accountability is measures on the extent in which the auditor as

well the PPDE adhere to the existing procedures.

In the regard to this, if the auditor failed to follow the procedures stipulate by the

authority he/she intent to compromise the quality of auditing which intern lead to the

loss of tax payer’s money (Sangster and Venti, 2006). Integrity is most common aspect

considered in past literatures which ensure the accountability in auditing proceeding.

Before execution of the auditing process, the auditor is entitling to sign the code of

conduct which needs his/her to avoid any conflict of interest and acceptance of any favor

from the PPDE. Through this it makes the auditor to be accountable for any action

happen in auditing process.

5.3.2 Effect of capacity building programs towards ensuring accountability

The purpose of this objective was to examine the effect of capacity building programs on

ensuring the accountability in public procurement auditing processes at PPDPA. In

overall, by 75%, the capacity programs had an effect on ensuring the accountability in

public procurement auditing process where three factors out four factors were found

significant. Those factors include training of auditor, Competence and time on

understanding the best practice of public procurement auditing. However, skills was

found moderate correlation towards ensuring the accountability of procurement auditing

process.

60
Previous results concurred with the findings of this study. For instance, Plumlee et al.

(2012) found that for effective implementation public procurement auditing principles of

accountability, value for money and integrity the auditors should first get a training on

auditing process. The normal practices indicate that in Tanzania, public procurement

auditing is learned as special program instead all public procurement auditors gain their

understanding of the practices through the training conducted by their authorities.

Never the less, some scholars also concurred with the findings that competence and

skills on understanding the concepts, principles, procedures and public procurement

laws, regulations and other government circulars on how to conduct public procurement

auditing is inevitable (Mansouri et al., 2009). Humphrey et al. (2006) argued that, the

public procurement auditing functions is not a job of everyone but only competent and

skillful persons on the public procurement cadres.

There is a tendency in most of the country where the public procurement auditing is

done by any person from any profession which is wrong and should not be entertained if

we intent to ensure accountability, effectiveness, efficiency and economy in the process.

5.3.3 Effect of technical audit factors towards ensuring accountability

The third objective of this study was to determine the technical auditing factors and its

effects on ensuring accountability in public procurement auditing process. Based on

previous studies and conceptual framework discussed in chapter two, there are main

factors that are involved in this study including the auditing sampling and risk

consideration factors. In general, the study revealed that auditing technical factor has

61
significant effect towards ensuring the public procurement auditing accountably. Also,

both two factors (auditing sampling and risk consideration) were found to be the

antecedents’ correlate of accountability in public procurement auditing.

These findings are consistent with several past studies (Koh et al., 2007; Mihret and

Yismaw, 2007). For example, Jensen and Payne (2005) revealed that the auditing

sampling is crucial for public procurement auditors who is performing the value for

money audit. With respect to the balance sheet of the PPDE, the sampling enhances the

auditor to easy draw the conclusion before he/she decides to do thoroughly auditing

investigation.

In conducting the stocks auditing, auditing sampling is paramount important as the

public entities hold numerous items and when 100% auditing is conducted to all items it

will consume a lot of time and money. The researcher can conclude that auditing

sampling is a critical facet for ensuing accountability in procurement auditing process.

Also, the risk is the likelihood of something happening which will disrupt the

accountability process. As the auditing process in our country is very uncertain, risk is a

very common factor which affects the accountability as we do not have the robust

mechanisms to prevent the risk in organization which normally affect the auditing

process.

5.4 Policy Implication

This study had both theoretical and practical implications to government and PPDA. The

results of this study draw the attention to the respective authorities concerning the issue

62
of public procurement auditing principles. The policy makers can easily have understood

the key factors and determinants that affect the accountability in public procurement

auditing process. Despite the quantitative support of the importance of public

procurement audit in ensuring the value for money in public procurement, the study also

provides in details the factors that influence the accountability in public procurement

auditing. Furthermore, the study provides measures and recommendations that can be

implemented by policy makers increase the accountability in auditing operations.

5.5 Recommendations

Recommendations were made and formulated based on research findings in the previous

sections and on literature read. The researcher recommends the following to ZPPDA and

Public procurement and disposal entity:

 In order to ensure accountability in public procurement auditing, the study

recommend that a there is a need for policy makers like ZPPDA to provide the

auditors enough resources for conducting the auditing functions in public

organization.

 The auditors should adhere to the procedures provided by the authority in

conducting their auditing operation in order to ensure the accountability.

 With no doubt, the authority should invest in capacity building by providing the

training related to public procurement auditing to auditors in order to equip and

upgrade them with new techniques and knowledge.

63
  The auditor needs to understand the basic technical aspects in conducting their

auditing operations such as auditing sampling and process of selecting the

auditing sampling.

5.6 Areas for further research

This study was carried out to assess factors affecting public procurement auditing

towards ensuring accountability at Zanzibar Public Procurement and Disposal Authority.

Further studies should be to determine the challenges that auditor encounters during their

auditing operations from the public procurement and disposal of public assets entities to

explore more the information. In addition, very little has been undertaken to explore

challenges that affect value for money auditing in public procurement in Zanzibar and

Tanzania at large. The researcher recommends, if similar studies would undertake in

Zanzibar, the scope to be reduce instead of evaluating many factors the researcher can

focus on single factor like auditing standards, capacity building programs or technical

audit factors affecting public procurement auditing.

64
 REFERENCE

Abdolmohammadi, M., and Thibodeau, C. (2007), "Auditing", Abdolmohammadi, mj,

vol. 1, pp. 42-45.

Abdullatif, M. (2016), "Auditing fair value estimates in developing countries: The case
of jordan", ajba, vol. 9 no.2, pp. 101-140.

Abowitz, D. A., and Toole, T. M. (2010), "Mixed method research: Fundamental issues
of design, validity, and reliability in construction research", journal of
construction engineering and management, vol. 136 no.1, pp. 108-116.

Adam, J., and Kamuzora, F. (2008), "Research methods for business and social studies",
adam, jamal, vol. 138.

Al-mzary, M. M. M., Al-rifai, A. D., and Al-momany, M. O. E. (2015), "Training and its
impact on the performance of employees at jordanian universities from the
perspective of employees: the case of yarmouk university", journal of education
and practice, vol. 6 no.32, pp. 128-140.

Al momani, M. A., and Obeidat, M. I. (2013), "The effect of auditors' ethics on their
detection of creative accounting practices: a field study", International journal of
business and management, vol. 8 no.13, pp. 118.

Ali, S. A. (2017). The role of good governance practices in enhancing service delivery
in public institutions in tanzania: the case study of the tanzania electric supply
company ltd. The Open University of Tanzania.

Anvuur, A., Kumaraswamy, M., and Male, S. (2006). Taking forward public
procurement reforms in ghana. paper presented at the proceedings of the 2006
cib w107: Construction in developing countries international symposium:
construction in developing economies: new issues and challenges.

Ardelean, A. (2013), "Auditors’ ethics and their impact on public trust", Procedia-social
and behavioral sciences, vol. 92, pp. 55-60.

65
Asare, E. N., and Prempeh, K. B. (2016), "Measures of ensuring value for money in
public procurement: a case of selected polytechnics in ghana", asare, evelyn
nsiah, vol. 5 no.1, pp. 22-31.

Babbie, E. (2004), "Indexes, scales and typologies in the practice of social research",
belmont, ca: wadsworth, vol., pp. 150-177.

Baily, P., Farmer, D., Crocker, B., Jessop, D., and Jones, D. (2008). "Procurement
principles and management", pearson education.

Bardhan, P., and Mookherjee, D. (2006), "Decentralization, corruption and government

accountability", bardhan, pranab, vol. 6, pp. 161-188.

Basheka, B. (2009), "Public procurement reforms in africa: a tool for effective

governance of the public sector and poverty reduction", International handbook
of public procurement, vol., pp. 131-155.

Basheka, B. C. (2008), "Procurement planning and accountability of local government

PROCUREMENT systems in developing countries: evidence from uganda",
Journal of public procurement, vol.

Bedard, J. C., Jackson, C., Ettredge, M. L., and Johnstone, K. M. (2003), "The effect of
training on auditors' acceptance of an electronic work system", International
journal of accounting information systems, vol. 4 no.4, pp. 227-250.

Bharat, t. p. c. t. (2016). "Quick revision for company accounts & audit (for icwa
intermediate: paper 12)", s chand & company limited.

Bovens, M., Schillemans, T., and Goodin, R. E. (2014), "Public accountability", bovens,
mark, vol. 1, pp. 1-20.

Christensen, L. B., Johnson, B., Turner, L. A., and Christensen, L. B. (2011), "Research
methods, design, and analysis", vol.

Churchill, G. A., and Peter, J. P. (1995). "Marketing: creating value for customers",
irwin boston.

66
Cox, D., LA Caze, M., and Levine, M. (2001), "Integrity", vol.

Creswell, J. W., and Creswell, J. D. (2017). "Research design: qualitative, quantitative,

and mixed methods approaches", sage publications.

Cscmp, A. (2012). Cscmp supply chain management: Council of supply chain

management professionals (cscmp).

Dai, J., and LI, Q. (2016), "Designing audit apps for armchair auditors to analyze
government procurement contracts", Journal of emerging technologies in
accounting, vol. 13 no.2, pp. 71-88.

Diggs, S. N., and Roman, A. V. (2012), "Understanding and tracing accountability in the
public procurement process: interpretations, performance measurements, and the
possibility of developing public-private partnerships", public performance &
management review, vol. 36 no.2, pp. 290-315.

Dimitri, N., Piga, G., and Spagnolo, G. (2006). "Handbook of procurement", cambridge
university press.

Drogalas, G., Pazarskis, M., Anagnostopoulou, E., and Papachristou, A. (2017), "The
effect of internal audit effectiveness, auditor responsibility and training in fraud
detection", accounting and management information systems, vol. 16 no.4, pp.
434-454.

Drost, E. A. (2011), "Validity and reliability in social science research", drost, ellen a,
vol. 38 no.1, pp. 105.

Durney, M., Elder, R. J., and Glover, S. M. (2014), "Field data on accounting error rates
and audit sampling", Auditing: a journal of practice & theory, vol. 33 no.2, pp.
79-110.

Elder, R. J., Akresh, A. D., Glover, S. M., Higgs, J. L., and Liljegren, J. (2013), "Audit
sampling research: a synthesis and implications for future research", Auditing: a
journal of practice, vol. 32 no.supplement 1, pp. 99-129.

67
Etse, D., and Asenso-boakye, M (2014), "Challenges of public procurement audit a
perspective of ashanti regional office of ghana audit service", etse, daniel, vol.
flynn, a., and davis, p. (2014), "theory in public procurement research", Journal of public
procurement, vol. 14 no.21, pp. 139-180.

Foster, c., farland, c. v., guidotti, f., harbin, m., roberts, b., schuette, j., . . . porcari, j. p.
(2015), "the effects of high intensity interval training vs steady state training on
aerobic and anaerobic capacity", journal of sports science & medicine, vol. 14
no.4, pp. 747.

Gaa, j. c. (2006), "integrity, auditor independence, and the protection of investors",

advances in public interest accounting, vol. 12, pp. 27-47.

Gailmard, s. (2012), "accountability and principal-agent models", gailmard, sean, vol.

Hair, j., black, w., babin, b., and anderson, r. (2009). multivariate data analysis 7th
edition pearson prentice hall: jour.

Hair, j. f., black, w. c., babin, b. j., anderson, r. e., and tatham, r. l. (1998). "multivariate
data analysis", prentice hall upper saddle river, nj.

Hair, j. f., black, w. c., babin, b. j., anderson, r. e., and tatham, r. l. (2006), "multivariate
data analysis 6th edition", pearson prentice hall. new jersey. humans: critique
and reformulation. journal of abnormal psychology, vol. 87, pp. 49-74.

Hakim, c. (2012). "research design: succesful designs for social economics research",
routledge.

Humphrey, c., moizer, p., and turley, s. (2006), "independence and competence? a
critical questioning of auditing", humphrey, christopher, vol. 12 no.149-167, pp.
149-167.

Hunja, r. r. (2003), "obstacles to public procurement reform in developing countries",

hunja, robert r, vol., pp. 13-22.

Israel, m., and hay, i. (2006). "research ethics for social scientists", sage.

68
Jensen, k. l., and payne, j. l. (2005), "audit procurement: managing audit quality and
audit fees in response to agency costs", jensen, kevan l, vol. 24 no.2, pp. 27-48.

Knight, l., harland, c., telgen, j., thai, k. v., callender, g., and mcken, k. (2012). "public
procurement", routledge.

Koh, p. s., laplante, s. k., and tong, y. h. (2007), "accountability and value enhancement

roles of corporate governance", koh, ping‐sheng, vol. 47 no.2, pp. 305-333.

Kothari, c. (2012), "research methodology: an introduction", research methodology:

methods and techniques, vol. 9, pp. 418.

Kueppers, r. j., and sullivan, k. b. (2010), "how and why an independent audit matters",
international journal of disclosure and governance, vol. 7 no.4, pp. 286-293.

Loiacono, f., and muhumuza, e. (2018), "the impact of procurement audit and
compliance monitoring on accountability and public procurement performance:
the case of uganda", vol.

Lukman, a. (2016). public procurement auditing in bangladesh: current state and

challenges. brac university.

Malhotra, n. k. (2010). marketing research: an applied orientation (vol. 834): new jersey:
pearson education.

Mansouri, a., pirayesh, r., and salehi, m. (2009), "audit competence and audit quality:
case in emerging economy", international journal of business and management,
vol. 4 no.2, pp. 17-25.

Mareque, m., lópez-corrales, f., and fiestras, g. (2015), "do auditors make mistakes when
they write audit reports? an empirical study applied to spanish non-listed firms",
economic research-ekonomska istraživanja, vol. 28 no.1, pp. 204-225.

Maung, c. (2018). computing systems for heterogeneous regulatory control compliance

monitoring and auditing: google patents.

69
Messier jr, w. f., reynolds, j. k., simon, c. a., and wood, d. a. (2011), "the effect of using
the internal audit function as a management training ground on the external
auditor's reliance decision", the accounting review, vol. 86 no.6, pp. 2131-2154.

Mihret, d. g., and yismaw, a. w. (2007), "internal audit effectiveness: an ethiopian public
sector case study", mihret, dessalegn getie, vol.

Mugenda, a. g. (2008), "social science research: theory and principles", nairobi: applied,
vol.

Munzhedzi, p. h. (2016), "south african public sector procurement and corruption:

inseparable twins?", journal of transport and supply chain management, vol. 10
no.1, pp. 1-8.

Mwarizo, h. o. (2013). the contribution of procurement audit in enhancing ethical and

compliant procurement practices: a case of sokoine university of agriculture
(sua). mzumbe university.

Mzenzi, s. i., and gaspar, a. f. (2015), "external auditing and accountability in the
tanzanian local government authorities", mihret, dessalegn getie, vol.

Nardi, p. m. (2018). "doing survey research: a guide to quantitative methods", routledge.

Nashwa, g. (2005), "the role of audit committees in the public sector", nashwa, george,
vol. 75 no.8, pp. 42.

Nyamori, r. o., abdul-rahaman, a. s., and samkin, g. (2017), "accounting, auditing and
accountability research in africa", accounting, auditing & accountability journal,
vol.

Olalla, m. f., and castillo, m. a. s. (2002), "human resources audit", international

advances in economic research, vol. 8 no.1, pp. 58-64.

Palmer, k. n., ziegenfuss, d. e., and pinsker, r. e. (2004), "international knowledge, skills,
and abilities of auditors/accountants", managerial auditing journal, vol.

70
Pickett, s. (2000), "developing internal audit competencies", managerial auditing
journal, vol.

Plumlee, d., rixom, b. a., and rosman, a. j. (2012), "training auditors to think skeptically",
plumlee, david, vol.

PPDA. (2016), "the public procurement and disposal of public asset act", zanzibar, vol.

PPRA. (2019), "annual performance evaluation report for financial year 2018/19",
dodoma, vol. tanzania.

Roos, r., and de la harpe, s. (2008), "good governance in public procurement: a south
african case study", potchefstroom electronic law journal/potchefstroomse
elektroniese regsblad, vol. 11 no.2, pp. 1-47.

Rossi, p. h., wright, j. d., and anderson, a. b. (2013). "handbook of survey research",
academic press.

Sabauri, l. (2018), "audit risk management and its affect on the audit of the financial
statement", globalization & business, vol.

Salehi, m., mansoury, a., and pirayesh, r. (2008), "factors affecting quality of audit;
empirical evidence from iran", journal of business research, vol. 2 no.1-2.

Sangster, k., and venti, j. (2006). public sector ethics and contract compliance audits.
paper presented at the international public procurement conference, rome.

Saunders, m. n. (2011). "research methods for business students, 5/e", pearson education
india.

Scott, w. r. (2004), "institutional theory", encyclopedia of social theory, vol. 11, pp. 408-
414.

Seol, i., sarkis, j., and lefley, f. (2011), "factor structure of the competency framework
for internal auditing (cfia) skills for entering level internal auditors",
international journal of auditing, vol. 15 no.3, pp. 217-230.

71
Spiller, P. T. (2008). An institutional theory of public contracts: regulatory implications:
national bureau of economic research.

Svanström, T. (2016), "Time pressure, training activities and dysfunctional auditor

behaviour: evidence from small audit firms", international journal of auditing,
vol. 20 no.1, pp. 42-51.

Thabet, I. (2017), "Auditor skills, traits and knowledge evidence from tunisia",
international journal of accounting and economics studies, vol. 5 no.1, pp. 7-15.

Thai, K. V. (2001), " Public procurement re-examined", journal of public procurement,

vol. 1 no.1, pp. 9-50.

Thornhill, A., Saunders, M., and Lewis, P. (2009). "Research methods for business
students", prentice hall: london.

Tukamuhabwa, B. R. (2012), "Antecedents and consequences of public procurement

non-compliance behavior", Journal of economics and behavioral studies, vol. 4
no.1, pp. 34-46.

Van staden, J., Fourie, H., Plant, K., and Coetzee, G. (2013), "Internal audit
competencies: Skills requirements for internal audit management in south africa",
southern african journal of accountability and auditing research, vol. 15 no.1,
pp. 75-85.

Wambui, K. C. (2015). Factors affecting effective procurement auditing of cdf projects

in kenya. kenyatta university.

Yamane, T. (1967), "Research methods: Determination of sample size", vol.

Zahmatkesh, S., and Rezazadeh, J. (2017), "The effect of auditor features on audit
quality", tékhne, vol. 15 no.2, pp. 79-87.

72
 Appendix 1- Questionnaires

Dear respondent;

I am Ali a student at the College of Business Education conducting a research study in

partial fulfillment of the requirements for the degree of masters of procurement and

supply. The purpose of this study is to assess factors affecting Public procurement

auditing towards ensuring accountability at Zanzibar Public Procurement and Disposal

Authority.

You are kindly requested to complete the attached questionnaire so as to enable me

accomplish this study. Please let me assure you that the questions are purely for

academic purposes, all information that you provide will be dealt with anonymously and

confidentially, and will be used for purpose of this study only.

I am grateful for your kindness and for your generous help in completing this

questionnaire and your contribution in professional development. Thank you for taking

your time to complete the questionnaire and for your cooperation.

Yours faithfully

Ali H.A HEMED

73
 Part I: General information of respondents (100)

(100a) What is your gender? 1) Male [ ] 2) Female [ ]

(100b) What is your Age?

1) 18 – 25 years [ ] 2) 26 – 33 years [ ] 3) 34-40 years 4) Above 41years [ ]

(100c) What is your highest education level?

1) Certificate and diploma[ ] 2) Bachelor [ ] 3) Master level [ ] 4) Phd [ ] 5)
Other(specify) ---------------------
(100d) What is your experience?
1) 0-5 years [ ] 2) 6-10 years [ ] 3) 11-15 years [ ] 4) 16 years and above [ ]
(100e) What is your position?
-------------------------------------
(100 f) Name of respondent (optional)
--------------------------------------

Rank the following attributes to the Part ii, Part iii and Part iv

1. Strong disagree
2. Disagree
3. Not sure
4. Agree
5. Strongly agree

74
 Part II: Auditing standard
Rate the following questions by tick √ the most appropriate answer in the square
bracket

Code Statement 1 2 3 4 5
Integrity of auditing
Professional skills are very critical in a procurement
V200a auditing for providing reliable information.
Procurement auditing process give a room for an auditor
V200b to provides independent audit opinion.
There is proper monitoring and quality assurance process
V200c of audit.
There is honest, fair and abide by laws and regulations
V200d during auditing
Procedure of auditing
There is effective and favorable processes used to obtain
V201a audit evidence
There is effective and favorable methods used to obtain
audit evidence enabling auditors to make conclusion
V201b regarding their auditing objectives
The available processes help the auditors to detect all
V201c kind of risks that are identified in procurement
The available methods help the auditors to detect all kind
V201d of risks that are identified in procurement
Resources for auditing
There is effective budget to support the auditor in the
V202a auditing task
The time of auditing is sufficient to accomplish auditing
V202b task

75
 There is enough material to support auditor during
V202c auditing
V202d The transport is available to support audit follow up
There is enough available auditor to accommodate all
V202e tasks of audit
Quality of audit reports
The audit report in procurement auditing issued as soon
V203a as after the audit is completed
The audit report in the organization provides positive
V203b actions and practices that were observed during the audit
V203c Reports are qualitative and have substantial evidence
V203d Reports are accurate, clear and concise
The procurement auditing report highlights all relevant
V203e items of procurement and supply

Part III: Capacity Building Programs

Rate the following questions by tick √ the most appropriate answer in the square
bracket
Code Statement 1 2 3 4 5
Impact of training to auditors Items
Training of auditors helps in the organization
V204a development in terms of procurement auditing
Training of auditors helps to produce quality audit
V204b report
Training of auditors helps to reduce risks associated
V204c with procurement and supply
Training of auditors helps the organization to attain its
V204d objectives in terms of procurement and supply
Training of auditors helps the auditors to increase their
knowledge and skills so as to attain the accounting
V204e standards and principals

76
 Time interval of training
The time provided for training auditors is enough to
V205a provide auditors with knowledge and skills
Did the knowledge been provided to auditors will be
V205b accumulated with time given for training
The time provided to train auditors affects negatively
V205c procurement and supply activities
The time provided to train auditors affects positively
V205d procurement and supply activities
The time interval to train auditor’s helps the
V205e organization development in procurement auditing
Competence of understanding best practices
The auditors in procurement auditing are tactful in
V206a dealing with workers in the departments
The auditors in procurement auditing are honest and
V206b fairly in delivering audit report
The auditors in procurement auditing are able to ensure
that audits are conducted in a consistence and systematic
V206c manner
The auditors in procurement auditing have effective
knowledge in audit principles, procedures and
V206d techniques
In the organization, the management is able to
V206e understand the scope of audits
Skills of understanding best practices
The auditors in procurement auditing work with a well
predetermined schedule according to the organization
V207a objectives
The auditors in procurement auditing use effective
V207b communication skills within the organization
The auditors in procurement auditing possess effective
V207c information technology knowledge and skills
The auditors in procurement auditing possess effective
V207d independent decision making
The auditors in the organization are analytical and
V207e critical thinkers in auditing processes

77
 Part IV: TECHNICAL AUDIT FACTORS
Rate the following questions by tick √ the most appropriate answer in the square
bracket
code Statement 1 2 3 4 5
Audit sampling
The procedures used in procurement auditing used to
V208a select the population without bias
The procedures in procurement auditing helps the audits
V208b work to be efficiency and effective
The selection of sample in procurement auditing doesn’t
V208c involve human judgments
The audit sampling in audits provides with auditors in
V208d required accounting standards
Audits sampling in the procurement auditing helps to
V208e gather audit evidence in order to conclude audit opinion
Risk consideration
Auditors detecting some errors in financial statements
V209b fairly
The errors detected in financial statements are normal to
V209c the organization
The errors detected do not have negative impacts to the
V209d organization
The organization deals with errors detected by auditor in
procurement auditing according to the accounting
V209e standards and principals

78
 Part V: Accountability in Procurement Auditing
Rate the following questions by tick √ the most appropriate answer in the square
bracket

Code Statement 1 2 3 4 5

Efficiency auditing and Value for money

There is compliance of the auditing recommendations
V210a by the Procurement entities
Increasing transparency of public procurement system to
V210b the Procurement entities.
Timely submitting auditing reports to the responsible
V210c authority.
Timely discussing of procurement audit reports by the
V210d responsible authority.
There is effective procurement of goods, works and
V210e services.

Thank You for Your Cooperation

79
 APPENDIX 2:

Interview guide to key informant participants

Please respond on the following questions about factors affecting procurement audit in

ensuring accountability in your organization.

i) What are ethical standards affecting public procurement auditing

processing ensuring accountability?

ii) Can you explain on each ethical standards on how they impacting on

public procurement towards ensuring accountability?

iii) What capacity building programs affecting Public procurement

auditing towards ensuring accountability?

iv) How these capacity building programs for public procurement

relating with accountability?

v) What technical audit factors affecting public procurement auditing

towards ensuring accountability.

vi) In what circumstances these technical audit factors impacting to

public procurement towards ensuring accountability?

80