Internal Auditing Practices in Enhancing Organizational Performance. A Case of Mumangi Construction Company Limited at Ilemela, Mwanza Tanzania
Purpose: This research examines how internal auditing practices influence organizational performance at Mumangi Construction Company Limited in Mwanza, Tanzania. The study focuses on three core components of internal auditing; audit planning, risk assessment, and reporting quality and assesses their contribution to financial, operational, and efficiency performance within the firm.
Design/Methodology/Approach: A cross-sectional research design was employed with a sample size of 142 respondents drawn from different departments within the organization. Data were collected through structured questionnaires and interviews. Descriptive statistics, correlation, and regression analysis were used to examine the relationship between internal auditing practices and organizational performance.
Findings: The study found that internal auditing practices at Mumangi Construction are weak and inconsistently implemented. Audit planning lacks clear objectives and realistic timelines, risk assessment is reactive rather than proactive, and audit reports rarely lead to corrective action. As a result, internal auditing has a limited impact on performance, despite its theoretical role in improving accountability, financial control, and efficiency.
Originality: This study contributes new evidence from the Tanzanian construction sector, where limited research exists on the practical application of internal auditing. It highlights the gap between established auditing principles and their implementation in developing economies, offering insights for both academic and practical improvement.
Practical Implications: The findings provide guidance for management, auditors, and policymakers. Strengthening audit planning, adopting systematic risk assessment processes, and improving reporting quality can enhance performance outcomes. Investment in auditor training and stronger management support is critical for transforming audit results into meaningful organizational improvements.
Social Implications: Enhancing internal auditing promotes transparency, resource accountability, and public trust within the construction sector. Better audit practices can reduce financial mismanagement and support long-term economic and organizational sustainability.
Keywords: Internal auditing, audit planning, risk assessment, reporting quality, and organizational performance
