Impact of corporate governance practices on the effectiveness of audit committees in regulatory authorities: evidence from Tanzania

Habibu Suluo (), Gwahula Raphael () and Saganga Kapaya ()
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Habibu Suluo: The Open University of Tanzania
Gwahula Raphael: The Open University of Tanzania
Saganga Kapaya: The Open University of Tanzania

Future Business Journal, 2025, vol. 11, issue 1, 1-16

Abstract: Abstract This study examines the impact of corporate governance practices on the effectiveness of audit committees within regulatory authorities in Tanzania. This subject is important to regulatory authorities and policy-makers in reflecting on their corporate governance practices. Adopting a quantitative approach, the research targeted board members, management, accountants, and auditors from 18 regulatory authorities, considering a random sample of 300 respondents. Data were collected from 241 participants who responded to the survey questionnaire, equivalent to 80.3% of the sample. Data were analyzed using regressions and the Jamovi software. The results revealed a positive and significant impact of corporate governance practices on the effectiveness of audit committees in regulatory authorities. Specifically, the audit committee’s role in board governance and the internal audit function were observed to have a strong impact, highlighting the importance of internal governance mechanisms. In contrast, the audit committee’s role in external audits had a limited impact, suggesting the need for better integration between the internal audit and external audit functions. In addition, the audit committee’s role in financial reporting and the authorization of financial statements were identified as key contributors to audit committee effectiveness, highlighting the importance of the audit committee’s oversight role in financial reporting processes and compliance. The study provides valuable insights for regulatory authorities and other public sector entities in Tanzania and beyond, seeking to enhance corporate governance practices and audit committee effectiveness by strengthening internal audit functions, improving board governance, and promoting better coordination between internal and external audit functions.

Keywords: Audit committee; Audit committee effectiveness; Corporate governance; Corporate governance practices; Regulatory authority (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1186/s43093-025-00537-3

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