Benchmarking Construction Auditing: A Framework for Assessing Construction Projects Performance in Tanzania

Abstract

The absence of audit standards has been noted as an obstacle towards achieving the envisioned goals, including in the construction industry. Hitherto, in Tanzania, performance audit of public construction projects is done by various institutions, all of which have their own varying indicators, yielding potentially varying outputs, in piece meals, and in some cases less detailed. The aim of this study was to synthesize, from the existing guidelines, a harmonized audit framework for construction projects performance in Tanzania, towards enhancing the envisioned goals. A sequential exploratory mixed method was utilized. The first set of performance indicators was identified through a review of four (4) key audit institution guidelines, including National Audit Office (NAO), Public Procurement Regulatory Authority (PPRA), the National Construction Council (NCC), and the Ministry of Finance and Planning (MoFP), and mapped onto the five commonly acceptable phases of a construction project (i.e., Planning, Design, Procurement, Construction, and Completion & Close-out), to examine their adequacy. A follow up interview with 9 purposively selected auditors who had worked with at least two of the four audit institutions was conducted to further refine the indicators. From the contemporary literature, additional indicators were identified and mapped along to synthesize a harmonized framework. The framework indicators were then tested through a survey of practicing auditors sampled through a chain referral method, yielding a total of 43 fully completed questionnaires. The qualitative and quantitative data were analyzed through qualitative content analysis and descriptive statistics, with the aid of IBM SPSS version 25 respectively. A harmonized framework was then synthesized, including five phases (i.e. planning, design, procurement, construction, and closeout), along with their respective significant indicators. The framework was validated through a purposively selected sample of auditors who had audited more than 20 projects and had confirmed their willingness to participate. Validation Results showed that all indicators were significant and worthy considering during performance audits. The study further recommends that, for consistency, auditing practices be monitored by a single institution, NAOT, since it is the one mandated by the law to conduct audits in Tanzania.