Influence of Institutional and Decision Usefulness-related Factors on the effective Implementation of External Auditor ' s recommendations in Tanzania ' s Ministry of Finance (Vote 50)

Abstract

This study investigates the influence of auditee organisation Institutional and auditee individual actors ' decision usefulness factors on the effective implementation of the Controller and Auditor General ' s Recommendations in the Central Government. The study employed a Descriptive and explanatory study designs, with the Ministry of Finance (Vote 50) selected due to its pioneering and exemplary role in financial management of the country. Data were collected using structured questionnaires administered with key staff of the Ministry of Finance (MoF). The study found that the critical auditee organisation institutional factors including pressure from the accounting and auditing professional board, followed by pressures from development partners/donors, public pressure, the relationship between CAG and his clients, adoption of ICT (EPICOR, LAWSON) and government laws. Overall, the findings illustrate the role of institutional theories (OIE and NIS) in explaining the auditee institutional environment that shape the effective implementation of CAG ' s recommendations by public officers. Furthermore, the findings reveal the critical auditee individual actor factors including skills and knowledge in effective implementation of CAG ' s recommendations. On the other hand, limited professional liability by public officials emerged as an impediment to effective implementation of the CAG recommendations. Thus, the study findings appreciate the role of the decision usefulness concept that promote understandability acquired from skills and knowledge for the effective implementation of CAG ' s recommendations by public officers. The study findings also posit that public officers need to practice the professional liability, which was currently unappealing. In a nutshell, the study has established both institutional and decision usefulness factors that are significantly related to effective implementation of the CAG recommendations by public officers in the emerging economy contexts, with Tanzania serving as an example.

Key words: The Controller and Auditor General, Audit Recommendations, Central Government, Ministry of Finance, Tanzania