A RESEARCH PROPOSAL

ON
EFFECTIVENESS OF INTERNAL AUDIT IN ACHIEVING INTERGRITY AND
RELIABILITY OF ACCOUNTING INFORMATION

CASE STUDY: ZAIN TANZANIA LTD

BY AZA, PAUL P

ADA III 2008/2009

SUPERVISOR: JILENGA M. TANO

A RESEARCH PROPOSAL SUBMITTED TO THE INSTITUTE OF

ACCOUNTANCY ARUSHA IN PARTIAL FULFILLMENT FOR THE AWARD
OF ADVANCED DIPLOMA IN ACCOUNTANCY
ABBREVIATIONS
IAA------------Institute of Accountancy Arusha
HESLB--------- Higher Education Student Loan Board
MOF ---------- Ministry of finance
HQ -------------Headquarter
NBAA--------- National Board of Accountants and Auditors
GAAP--------- General Accepted Accounting Principles
LTD------------Limited
IA----------------Internal auditor
EA---------------External auditor
IC----------------Internal control
IAF--------------Internal Auditing Firms
IAS---------------International Accounting Standard
TRA--------------Tanzania Revenue Authority

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 ABSTRACT
This study is about the effectiveness of internal audit in achieving integrity and reliability of
accounting information. This study will examine the efficience of internal audit . The case
design will be applied in this study and the study will be carried at Zain Tanzania Ltd (HQ)
Dar Es Salaam.
Research instruments such as interview, observation,questionnaire, and documents will
comprise data collection methods, judgemental, stratified and random samples of the staff
from the finance department will be selected to present the units of inquiry in this particular
study. Descriptive and tabular analytical methods will be applied to explain the findings.
The findings of the study will be presented in tables and relationships will be established.
Further more the study will provide conclusions and recommendations.

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 CHAPTER ONE
1.1 INTRODUCTION AND BACKGROUND OF THE PROBLEM
Accounting Information at an organization is used by a number of users both internally and
Externally. Management of organizations is responsible for preparation of the accounting
Information, through the Accounting Department and Internal Audit Unit for assurance of their
reliability and Integrity of accounting information.Users of Accounting Information who
consists of managers, creditors, suppliers, Government Institutions, TRA and many others.
These users have different needs for the Information. Decisions are made by these users basing
on information produced. The decisions made have a lot of economic impact to the users.
Thus integrity and reliability of accounting information is an important issue for these users.
In practical situation, there are users of accounting information such as manager and investors
have been the victims of unreliable information which caused a loss to them, while the
organizations which produce those information have Internal Audit Unit. These circumstances
lead to a need for understanding the role and scope of IAF in preparation and presentation of
accounting information. The study needs to show also some challenges if present faced by IA
unit within an organization. On the other side, there are external auditors who mostly rely on
the work of internal auditor in fulfilling their statutory duties of forming an opinion of the truth
and fairness of financial Statements.
IA unit also have to play a role to ensure reliance placed by EA is worth of it. Because if EA
rely on Internal Auditors who are not effective will have adverse effects on the users of
accounting information. Thus EA must ensure requirements of ISA 610 are adhered to. Thus,
the purpose of this study is to assess the contribution at IAF in providing assurance about the
reliability and integrity of accounting information and the impact it has on the economic
decision made by management and external users.
1.2 STATEMENT OF THE PROBLEM
Accounting information are tools used by management and other external users in making
their economic decisions. The information produced is expected to be free of material
misstatements so that it may not interfere with the decision made by users of those
information. IA unit in organizations are assigned many role and duties of financial and non-
financial in nature. They are also involved in ensuring reliability and integrity of accounting

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information. But the events where users are affected by materially misstated accounting
information raised a question on the effectiveness of IA in achieving integrity and reliability of
accounting information. The aim of the research is to search for factors for shortcomings in
accounting which have large impact on decision of its users and to make recommendations on
the means to improve the role of IA Unit in preparation and presentation of accounting
information.
1.3 OBJECTIVES OF THE STUDY
1.3.1 Main Objectives
The main objective of the study is to assess the contribution of IAF in achieving reliability and
integrity of accounting information by pointing out weaknesses and suggesting solutions and
making recommendations for the better.
1.3.2Other Objectives
 To identify factors affecting independence of IA department.
 To evaluate the efficiency of Internal Control structure of an organization.
1.4 RESEARCH QUESTIONS
Research questions will be directed towards the fulfillment of research objectives which are:
 Does IA unit function independently?
 How effective is internal control system in the Company in detecting errors and fraud?
1.5 Significance of the study
The study is significant in the following aspects:
 The study will show important way that the researcher will have taken into account to
make the internal audit department more effective in achieving the goals of the
company.
 The study will show areas that require more research in order to achieve effective of
internal audit department
 The study will also provide a general understanding of the effectiveness of internal
audit department in an organisation.
 The study is one of the requirements for successfully completion of the fifth semester
as well as to fulfil the requirement for award of Advanced Diploma in Accountancy.
 Also the study will show a good source for other organisation of the same nature.

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1.6 Scope of the study
The research was covering the audit department and accounting department of Zain (T) Ltd.
1.7 LIMITATIONS OF THE STUDY
Limitations that are expected to be encountered by the researcher are:-
a)Time constraint
The time scheduled to carry out the research study is very short to be able to collect adequate
data and satisfy the motive behind the study.
b) Difficulty in data collection
Some of the member of the staff might be reluctant to provide some Information fearing that
the information may be misused. The researcher will communicate with staff members to
assure them that the Information asked is for academic purpose and will not be misused.
c) Budget constraint
Since the study will be financed by MOF as the main sponsor of the researcher for the
Advanced Diploma in Accountancy, the funds provided might be inadequate as per study
requirements. Hence the researcher will conduct the study in accordance with the fund
provided by the sponsor and his personal fund.

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 CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 MEANING OF AUDITING
Auditing is an independent examination of the evidence form which financial statements are
derived in order to give the reader of these statements as to truth and fairness of the state of
affairs which they disclose. Auditor conducts his/her job with the following objectives which
are to conduct an independent examination and to se that financial statements are prepared in
accordance with applicable reporting framework
According to Stettler H F (1982) Auditing is an objective systematic review process that
involves selecting and evaluating evidence for the purpose either of ascertaining reliability of
reported financial statements and adequacy and effectiveness of controls established over
activities. Auditing review action as are performed by either external auditors and internal
auditors.
Woolfs E (1997) defines audit as follows, “Is a process (carried out by suitably qualified
personnel) whereby the accounts of a business entities, including limited companies, charities,
trusts and professionals firms, are subjected to scrutiny in such detail as will enable the
auditors to form an opinion as to their truth and fairness.
This opinion is then embodied in an audit report addressed to those parties who commissioned
the audit or to whom the auditor are responsible under statute.
2.2 MEANING OF INTERNAL AUDITING
IIA (1999) defines internal audit as an independent, objective assurance and consulting activity
designed to add value and improve an organizations operations.It helps an organization
accomplish its objectives by bringing a systematic, disciplined approach to evaluate and
improve the effectiveness of risk management, control and governance process
Millichamp A. H. (2002) defines internal audit as an independent function established by the
management of an organization for the review of the internal control system as a service to the
organization. It objectively examines, evaluates and reports on the adequacy of internal control
as a contribution to the proper economic, efficient and effective use of resources. Internal
audit therefore is regarded as an independent activity established by management. It is a part

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of internal control system/management. Corporate governance is a single body that is
responsible for the success of organization, thus have to ensure internal audit unit is
independent to be able to check internal control system and advice to them (management)
when a weakness is identified. All those results into goals realization by organization.
2.3 MEANING OF ACCOUNTING INFORMATION
Accounting is not an end but rather it is a means to an end (Meigs: 4) According to Meigs
(1999), accounting information is simply the means by which we measure and communicate
economic events.
Meigs defines three types of accounting information which are Financial Accounting,
Management Accounting and Tax accounting. Accounting Information is developed by
accounting information system which communicates the accounting information to decision
makers.
An accounting information system (AIS) is the system of records a business keeps maintaining
its accounting system. This includes the purchase, sales, and other financial process of the
business. The purpose of AIS is to accumulate data and provide decision makers (investors,
creditors, and managers) with information to make decision.AIS therefore provide efficient
delivery of information needed to perform necessary account work and to assist in delivery of
accurate and information data to users (Wikipedia, the free encyclopedia). Accounting
information such produced is used by decision makes such as Chief Financial Officer and
Labor unions respectively. Thus the information must be reliable.
Factors that add to the integrity of accounting information are:-
 Standard for preparation of accounting information according to GAAP.
 Strength of internal control structure which provides assurance about reliability of
accounting information.
 Competence judgment and ethical behavior of auditors.
Frank woods explains accounting information as a body of quantified information that can be
measured in money terms. AIS is the total suite of components that together compose all the
inputs, transaction processing, collecting and reporting of financial transaction data. It is in
effect, the infrastructure that supports the production and delivery of accounting information.
Accounting information has some key characteristics. According to wikipedia website, the
key characteristics of accounting information are;

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  Relevance -Assist users to form, confirm, or may be revise a view – In the context of
making decisions.
 Consistency – Similar application of accounting policies.
 Comparability – Use of same accounting standards.
 Reliability – Neutral or unbiased.
2.4 OBJECTIVES OF AUDITING
Objectives of auditing as postulated by Millichamps are:
2.4.1 Primary objectives:
To produce a report by the auditor of the truth and fairness of financial statements so that any
person reading them can have belief in them.
2.4.2 Subsidiary objectives
 To detect error and fraud.
 To prevent error and fraud by deterrent and moral effect of the audit.
 To provide spin off effects Auditor will be able to assist his client with accounting
system, taxation financial, risk management and other problems.
2.5 OBJECTIVES OF INTERNAL AUDIT
Objectives of Internal Audit vary depending on the size and structure of the entity and
management needs.
Stettler (1982) says objectives of internal auditing are to assist members of the organization in
the effective discharge of their responsibilities. To this end, internal auditing furnishes them
with analysis, appraisals, recommendations, counsel and information concerning the activities
reviewed.
Evaluation of the performance of the various functional, units within the organization
especially in terms of operating efficiency and the implementation of controls designed to
achieve optimum results.
Ascertaining compliance with the organization’s operating polices and procedures and with the
various controls that have been instituted. Verification of the reliability and integrity of the
operating and financial information on which management and other must rely in performing
their responsibilities. The existence of the resources for which accountability is maintained
should be verified.

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According to Mhilu objectives of IA are;
 Review and appraise soundness, adequacy and application of accounting and other
control.
 Ascertain extent of compliance with policies, plans and operating procedures.
 Ascertain whether assets are accounted for safeguard from losses.
 Ascertain reliability of accounting and other data within the organization.
Sawyer (1973 P 513) gives objectives of IA as follows;
 To assist members of organization in the effectiveness of discharge of their
responsibility.
 To promote effective control at reasonable cost.
In the website of Western Education and Library Board (WELB) the principal objective of IA
is to carry out systematic review and evaluation of risk management control and governance
which comprises the policies, procedures and operations in place to:
 Establish and monitor the achievement of WELB’s objectives
 Identify, assess and manage the risk of achieving WELB’s objectives.
 Advise on, formulate and evaluate policy, within the responsibilities of the Accounting
Officer.
 Ensure the economical, effective and efficient use of resources.
 Ensure compliance with established polices (including behavior and ethical
expectations), procedures, laws and regulations.
 Safeguard the board assets and interests from losses of all kind, including those arising
from irregularity, fraud or corruption; and
 Ensure integrity and reliability of information accounts and data including internal and
external reporting and accountability processes.
2.6 OBJECTIVES OF ACCOUNTING INFORMATION
Accounting Information has the objective of assisting management and other users to make
economic decisions for the success of an organization.

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2.7 PUBLIC SECTOR AUDITING
Public sector auditing is concerned with government related activities. This type of auditing is
now in full practice because of raising public awareness about accountability in the use of
public fund.
Interest in audit of public sector grows because apart from management, also other interested
parties such as donors and citizens who want to know how their fund is used. (Stettler (1982).
Internal auditors in public sector must play part in assuring concerned parties about reliability
and integrity of accounting information.
The role of IA is central Government has recently changed for two reasons. The current
administration’s modernizing agenda has encouraged departments to become more
accountable to the electorate whilst also performing their duties. Linked with this process has
been the move to a more risk – based approach to internal audit that is becoming universal in
private sector.
This has let to a move away from traditional systems based auditing to a greater concentration
on corporate governance and a control culture. Another benefit of having more efficient
controls, coupled with greater transparency in the decision and policy making processes of
government (internalauditreemitment.com/candidates/public-sector ).
2.8 SCOPE OF INTERNAL AUDIT
Mostly scope of functions of internal auditors is determined by management depending on the
size of entity, type of information required by management and nature of entity’s business.
But, it is normally nowadays for internal auditors to cover many areas of organizations
including financial and non-financial. Millichamps shows the scope of IA by explaining that
internal auditors review accounting system and internal control examining financial and
operation information, reviewing economy, efficiency and effectiveness of operation and of
the functions of non-financial controls. Also to review implementation of corporate policies,
plans and procedures, special investigations and review of compliance with laws, regulation
and other external requirements and with management and directives and other internal
requirements.
Stettler shows that scope of work of internal auditors covers internal control reviewing for
completeness and accuracy. Also for internal auditors to encompass other activities which
includes administrative and operating control.

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According to statement of responsibilities of IA (1993) internal auditor’s scope involves
examination and evaluation of the adequacy and effectiveness of the organization’s system of
internal contol and the quality of performance in carrying out assigned information. Also, they
cover financial, operational, reviews, management audit and compliance audit.
When determining the scope of internal auditors, the independence of internal audit unit must
be taken into considerations. The two important factors in ensuring their independence are
organization status of internal auditors and objectivity. These should be properly taken care of
in an organization.
2.9 ROLES OF INTERNAL AUDITORS
The role of internal auditors has been changing with its development. Formally, the role of
internal auditors was on detecting errors and frauds. But changing organization environment
has changed the role of internal audit. New roles internal auditors add value to organization
Roles of internal audit include;
 Assessment of performance of management system.
 Planning designing and improving internal control system.
 Training, advice and assisting management to determine what is to measure how to
build and use performance management systems.
 To ensure the reliability and integrity of financial and operational information IA has
the role of checking that the information provided to management is accurate and
reliable. Thus information is the one used by management in decision making.
Millichamps outline the activities of internal auditors as follows:
1. Internal auditor has to ensure that
 Management policies are fulfilled.
 The information is effectively managed, reliable and complete. Thus information is
not only provided by according system.
 The organization assets are safeguarded.
 The internal control system is well designed and works in practice.
2. Other roles of internal auditors are;
 Acting as a training officer in internal control matters
 Auditing the information given to management particularly interim accounts and
management account reports.

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  To prevent errors and fraud.
 Taking share of the external auditors’ responsibilities in relation to the figures in the
annual accounts.
In the Public Regulations (2001). The Tanzania Internal Audit Service has two roles which are
improvement and assurance.
Ensure that the government and internal control systems are continually being improved and
optimized is response to an even changing environment; and
Provide reasonable assurance to the relevance, permanent secretaries and paymaster General
that significant risk in ministries, departments and agencies are being appropriately managed
with an emphasis on the role of Internal Control.
Mhilu explains activities of IA to include;
 Review of accounting internal control systems.
 Review of the economy and internal control systems.
 Review of the economy, efficiency and effectiveness of operations including non-
financial controls.
 Review of compliance with laws and regulations and other external requirements and
with management policies and directives and other internal requirements.
In the website of Exeter City council, the roles and objectives of Internal Audit are to;
Review and assess
The soundness, adequacy and reliability of financial, management and performance systems
and data.
The effectiveness of internal controls, and make recommendations to improve these where
appropriate.
Procedures to check that the council’s assets and interests are adequately protected and risks
are identified and effectively managed.
Check for compliance with legislation, council policies and procedures.
Promote and assist the council in the effective use of resources.
Undertake independent investigations regarding allegations of fraud and irregularity in
accordance with council policies, and procedures and relevant legislation.

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2.10 ESSENTIAL ELEMENTS OF INTERNAL AUDIT
These elements will contribute to the increasing in the effectiveness of internal auditors in
assuming management of reliability and integrity of accounting information.
Millchamps (2002) outlined these elements as:
 Independence:-Internal auditors even as an employee of the organization, but must be
able to organize his/her findings to a high level in management.
 Staffing:- Internal auditors must be fully trained.
 Relationship:- Internal auditors should have constructive working relationship and
mutual understanding with management, external auditors, with any review agencies
(management consultants) and where appropriate an audit committee.
 Due care: - internal auditor should approach his/her work with skill, care and judgment.
He should be up to date technically and have personal standards of knowledge, honest,
probity and integrity.
2.11 STATUTORY DUTIES OF INTERNAL AUDIT
The statutory duties of IA are defined in regulation 34 of the Public Financial regulations
(2001) as follows.
 Review and report on proper control over the receipt, custody and utilization of all
financial resources of the unit.
 Review and report on conformity with financial and operational procedures and good
practice as defined by Accountant General, in order to avoid incurring obligations and
authorizing payments to the extent which would ensure effective control over the
expenditure unit.
 Review and report on the correct classification and allocation of revenue and
expenditure of the unit.
 Review and report on the reliability and integrity of financial and operating data so the
information provided allows for the preparation of accurate financial statements and
other report for the information of the unit and the general public as required by the
registration.
 Review and report on the system in place used to safeguard assets, and as appropriate,
the verification of the existence of such assets.

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  Review and report on operations on program to ascertain whether results are
consistency with established objectives and goals.
 Review and report on the adequacy of actions by the management in response to
internal audit report and assisting management in the implementation of
recommendations made by CAG.
 Review and report on the adequacy of control built into computerized system in place
within the unit.
2.12 THE ROLE OF INTERNAL CONTROL STRUCTURE
The role of internal control structure in achieving integrity and reliability of accounting
information.
ISA (315:42) internal control system is the process designed and affected by those charged
with governance management and other personnel to provide reasonable assurance about the
achievement of the entity’s objectives with regard to:
 Effectiveness and efficiency of operations
 Reliability of financial reporting
 Compliance with applicable laws and regulations
Internal auditors have the duty of reviewing organization IC and to provide assurance to the
board and management. It has to ensure that controls are adequate to guard against risks
identified and they are operating effectively.
A strong internal control structure helps organization in achieving integrity and reliability of
accounting information although it always not possible for controls to eliminate errors, fraud,
misstatements, omissions and irregularities.
Objective of internal control according to Millchamps (2002) is to carry the business in an
orderly and efficient manner to ensure adherence to management policies, safeguard its assets
and secure the accounting and reliability of records.
Therefore, a strong internal control structure is an indication that accounting information may
be reliable while a weak internal control may lead to suspects about integrity and reliability of
information.
Sawyer(1981) explains the importance of internal review. All operations should be
periodically reviewed by people who are independent of those operations(internal auditors).

12
Internal auditor should conduct an advisory responsibility and plan review work. On the other
hand management must not override controls of which internal auditors cannot be aware of.
Therefore internal auditors have to check adequacy and effectiveness of internal controls.
2.13 RESPONSIBILITY AND AUTHORITY OF INTERNAL AUDITORS
Sawyer (1981) explains that the responsibility of internal auditor in an organization should be
established by management policy. The policy should give internal auditor full access of all
organization’s records, properties and personnel relevant to the subject under review. Internal
auditors should be free to review and appraise policies, plans, procedures and records.
Internal auditor’s responsibility should be;
To inform, advice management and to discharge this responsibility in a manner that is
consistency with code of ethics of IIA.
To coordinate IA activities with others so as best to achieve audit objectives and objectives of
the organization.
2.14 EMPIRICAL LITERATURE REVIEW
Other people, who conducted this study, have contracted the following materials;
Definition of internal audit
Ngajilo Robert(2002) and Sanga Dora (2004) They explained internal as an independent
through the statement of responsibility of internal auditors issued by the institute of internal
auditors as, the independent appraisal activity within an organization for the review of
accounting financial and other operation as bases for protective and constructive service to the
management.
Objective of internal audit department.
Ummy Sella (2004) show that the objective and scope of the internal audit activity is to
determine whether the organization of risk management, control, governance process. As
design and represented by the management, is adequate and functioning in a manner that
ensure;
i. Risks are appropriate identified and managed.
ii. Resources are acquired economically, used efficiently and are adequately protected.
iii. And recommend improvement in an internal audit department because it’s just like any
other department in an organization and it adds value to the organization for example

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 to make sure that the accounting system of the organization is well managed and to
improve the internal control system of the organization.

Shayo Sylvia and ignore Judaica (2000) pointed out the functions of internal audit. And these
functions are as follows;
i. Review of accounting systems and related internal controls.
ii. Examination of financial and operating information for management including detailed
testing of transactions and balances.
iii. Review of economy, efficiency and effectiveness of the operations and the functioning
of the non- financial controls.
iv. Review of the implementation of corporate policies ,plans and procedures
v. Special investigations.
Michael Sherer (1997) pointed ‘to obtain maximum benefit from the internal audit service, the
audit committee is appointed to oversee the management operations of the team on her behalf.
Involvement of an audit committee of the external appointees adds another unique dimension
to the department.
With regard to the organization internal audit it is considered that if the internal auditor could
be responsible to the audit committee rather than to certain officers of the organization,
effectiveness of the internal audit would be improved and at the same time the independence
and ability of the internal auditor would be enhanced. It appears, therefore, that at the present
time audit committees are not likely to be brought into existence in the foreseeable future.

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 CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 INTRODUCTION
Here we discuss the research process and the nature of research designed to be used. The topic
explains important aspects of the whole process.
3.2 RESEARCH DESIGN
A case study design is used in the topic because of the following qualities described by
(Kothari, 2002).
 It is fairly exhaustive method, which enables the researcher to study
deeply, and through, different aspects of phenomenon.
 It saves both time and cost.

3.3 AREA OF STUDY.

The research will be conducted at Zain (T) ltd previously referred to as celtel (T) Ltd. And
internal audit unit is the unit of study.
3.4 POPULATION AND UNIT OF INQUIRY.
The Unit of inquiry used was top executives and staffs various levels. The population will be
selected from variousepartments but the concentration will be at Internal audit Unit.
3.5 SAMPLING PROCEDURE
The sampling procedure will use simple random sampling for staff of middle and lower levels
and judgment sampling for top officers.
Table 3.1 Sample selection

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 Population category Population Sample selected %of sample
Zain Top management 10 4 40%
Internal Audit Unit 3 3 100%
Accounting office 11 6 54.55%
Budget office 4 2 50%
Total 28 15 53.57%

Figure 3.1: sample selection

sample selection

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number of people

10
8
Population
6
Sample selected
4
2
0
Budget office
Internal Audit

Accounting
management
MICS Top

office
Unit
Zain

3.6 DATA COLLECTION METHODS

I will use Both Primary and Secondary methods of data collection.
3.6.1Primary data
The following primary data collection methods will be used by the researcher.
Participatory observation
The researcher will participate in the day to day activities of the company. He will participate
in the audit cores. Through that he will be able to observe many functions of the audit unit. It
will enable the researcher to gather many relevant information.
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Interview
Verbal questioning will be directed to staff of Zain in order to be able to gather more data for
the topic. I will interview People from the internal audit unit and other departments.
Questionnaire
A Set of written questions will be made available to different members of Zain Company.
Distribution is shown in the table 3.2

Table 3.2 Proportions of respondents from questionnaires;

Section Number of Number of %of questionnaires
questionnaires questionnaires returned
distributed returned
ZAIN Top 4 3 75%
Management
Internal audit 3 3 100%
unit
Accounting 6 6 100%
office
Budget office 2 2 100%
Total 15 14 93.33%
Source; analysed data

17
 Figure 3.2; proportions of respondents from questionnaires

proportions of respondents from questionnaire

number of questionnaires

7
6 Number of
5 questionnaires
4 distributed
3 Number of
2 questionnaires
1 returned
0
Management

Internal audit

Accounting

Budget office
Zain Top

office
unit
MICS

3.6.2Secondary data
More information will be sought from reading different documents of the Zain Company to
find information about internal audit unit. Documentary review will contribute in
understanding the part played by internal audit in accounting information.
3.7 DATA ANALYSIS TECHNIQUE
Both qualitative and quantitative methods of data analysis will be used to analyze the findings.
3.7.1 Qualitative data analysis technique
Data which can not be measured numerically will be analyzed by making logical statements
which will include the explanations from the respondents.
3.72 Quantitative data analysis technique
Numerically data collected will be analyzed, examined and interpreted by using mathematical
or statistical techniques.

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 CHAPTER FOUR
ANNEXES
4.1 RESEARCH BUDGET
The table below is estimated expenses the researcher is expected to incur during the
Whole process of conducting the study.

DETAILS AMOUNT PER ITEM TOTAL

Transport costs 120days 100@ 2000 200,000/=
Stationeries 200000/=
2 reams of photocopy 2 @ 7000/= 14,000/=
papers
2 reams of ruled papers 2 @ 3000/= 6000/=

19
 2 note books 2 @2000/= 4000/=

4 ball pens 4 @500/= 2000/=

1 pencil 1@500/= 500/=
1 Ruler 1@500/= 500/=
Flash disc 75,000/= 75,000/=
Meals &Accommodations 100@4980 498000
for 119 days
Printing & Binding 100,000/= 100,000/=
Miscellaneous 100,000/= 100,000/=

TOTAL…………………………………………………………12000000/=

4.2. SCHEDULE OF ACTIVITIES

The study will take sixteen weeks comprising of the activities as shown in the Gantt chart
below which is the semi- structured decision model showing different task to be performed in
carrying on the complete research work and the time period for each task.

SCHEDULE OF EXPECTED DURATION IN WEEKS

ACTIVITIES

1 2 3 4 5 6 7 8 9 10 1 12 13 14 15 16
1
FAMILIARIZING
WITH THE
ORGANIZATION

20
 DESIGN OF THE
RESEARCH

DATA
COLLECTION

COMPILING AND
PREPARATION OF
MANUSCRIPT

REPORT WRITING
AND
SUBMISION

SELECTED REFERENCES;
Cooper D. R. & Sangster A (1998), Business Research Methods, 6th Ed, Mc Graw – Hill, New
York.

Howard H. F (1982) Auditing Principles, 5th Ed Prentice Hall Inc., New Jersey

Howard L. R. (1974), Auditing, 4th Ed MacDonald and Evans Ltd, London.

International Standards of Auditing, 2004

Kothari C. P. (2006), Research Methodology,2nd ed, New Age International (p) Ltd, New
Delhi.

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Meigs et al (1996), Accounting the basis for business decision, 11th Ed, McGraw – Hill, New
York.

Millichamps A. H (2002), Auditing, 8th Ed Bock Power Comwall

Paper 2.6 (Int.), Audit & Internal Review, Kaplan Publishing

Sawyer L, B (1981) the Practice of Modern Internal Auditing,2nd Ed,Altamonte

Spring,Florida.

United Republic of Tanzania (2001) Public Finance Act, Regulations, Government Printers,
Dar es Salaam.

Wood F & Songster A (2002), Business Accounting 2, 9th Ed, Prentice – Hall, Harlow.

Woolf E (1997), Auditing Today, 6th Ed. Prentice Hall, London

www.en.wikipedia.org/wik/accounting-info-system 12/11/2007

www.exeter.gov.uk/index.aspx?articleid-4727 12/11/2007

www.internalauditrecruitment.com/candidates/public-sector 12/11/2007

www.theiia.org/research-report

www.welbni.org/schools/audit.asp 12/11/2007

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APPENDIX
4.3. QUESTIONNAIRES
Dear respondent
The following questions from Aza Paul P,as a third year student at Institute of Accountancy
Arusha pursuing Advanced Diploma in Accounting .Currently undertaking a research on ‘The
effectiveness of internal audit in achieving integrity and reliability of accounting information’
A case study of Zain Tanzania Ltd.You are kindly requested to respond to the following for
the intended purpose;

1(i) Is there any specific roles performed by internal audit unit in your company?
a)yes
b) No ( )
c) Not sure

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(ii) If yes list at least 4 roles
………………………………
………………………………..
………………………………
…………………………………..
2(i) Are there accounting information produced by your department?
a) Yes
b) No ( )
c) Not sure
(ii) If yes mention at least 4 accounting information
……………………………………………………..
………………………………………………………
……………………………………………………….
……………………………………………………….

3(i) Is internal audit unit effective in achieving integrity and reliability of accounting
information
a)Yes
b) No ( )
c) Not sure
(ii) If no give reasons
…………………………………………………………..
…………………………………………………………
……………………………………………………………
4(i) Does internal audit unit work as an independent function?
a)Yes
b) No ( )
c) Not sure
(ii) If no give factors that affect internal auditors’ independence.

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…………………………………………………….
……………………………………………………..
……………………………………………………….
5(i) Does internal audit unit function as an internal consultant?
a)Yes
b) No
c) Not sure
(ii) If no are there any effort made to make it an internal consultant?explain
………………………………………………………………………………….
………………………………………………………………………………….
…………………………………………………………………………………..

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