Title: They Keep Us in Check: Understanding the Role of Public Sector Audit in Strengthening Corporate Governance in Tanzanian State-Owned Enterprises
Authors: Dr. Theobald Francis Kipilimba
Volume: 10
Issue: 8
Pages: 10-24
Publication Date: 2026/08/28
Abstract:
Public sector auditing plays an important role in promoting accountability, transparency, and good corporate governance in State-Owned Enterprises (SOEs). In Tanzania, many SOEs continue to face challenges such as weak internal controls, financial mismanagement, and limited accountability despite their contribution to economic development and public service delivery. This study explored the role of public sector audit in strengthening corporate governance practices within Tanzanian SOEs. A descriptive qualitative research design was adopted to obtain in-depth understanding of participants' experiences and perceptions. The study was conducted in selected SOEs in Tanzania, involving a sample size of 53 participants selected purposively from key stakeholder groups, including auditors, senior management officials, board members, and oversight personnel. Data were collected through in-depth interviews and documentary review, and analyzed using thematic analysis. The findings revealed that public sector audit contributed positively to accountability, transparency, and governance oversight within Tanzanian SOEs by exposing governance weaknesses, improving financial reporting practices, and increasing management responsibility. However, the effectiveness of audit influence varied across institutions due to factors such as weak implementation of audit recommendations, political interference, management resistance, limited enforcement powers, and operational inefficiencies. The findings also identified opportunities for strengthening audit impact through improved parliamentary oversight, governance reforms, technological advancements, and stronger institutional collaboration. The research concluded that although public sector audits played an important role in promoting corporate governance within Tanzanian SOEs, stronger enforcement mechanisms, improved operational systems, and sustained institutional commitment were necessary for achieving long-term governance improvements.