TANZANIA INSTITUTE OF ACCOUNTANCY (TIA)

COURSE:BACHELOR DEGREE IN ACCOUNTANCY SUBJECT:AUDITING SUBJECT CODE:ACU 07418 GROUP MEMBERS; 1.MAKUNDI CLARENCE 2.ALEX AIKADE 3.SONDAS ALMAIDA 4.NDUNGURU VIVIANO 5.MOSES ISAACK REG. NO. TIA/DSM/BAC/2011/2012/108 TIA/DSM/BAC/2011/2012/004 TIA/DSM/BAC/2011/2012/232 TIA/DSM/BAC/2011/2012/182 TIA/DSM/BAC/2011/2012/052

SUPERVISOR; MR MSABI

LOCAL

GOVERNMENT

FINANCE

ACT

NO.9

OF

1982

This Act administer Audit in the country as per under;

Sec 45(1)(2)(3)(4)(5) as analyised here

45.-(1) The accounts of every district council, and of every urban authority, shall be audited internally by an internal auditor employed by the authority concerned, and the external auditor for each of those authorities shall he the Controller and AuditorGeneral. (2) The accounts of a township authority shall be audited by such auditor as may be appointed in that behalf by the Minister, or by a public officer or local government authority authorized by the Minister. (3) The accounts of a village council shall be audited by such public officers or organizations as the district council or as the case may be, an urban council may, in writing direct. (4) As soon as possible after the close of the financial year of a local government authority the authority shall submit its accounts for audit to the auditors, who shall complete the audit not later than six months after the close of the financial year. (5) Every authority shall permit the auditor to check any cash, Investments or other assets in its possession or over which it has control and to have access at all times to all its accounts and all books, vouchers and gapers relating to them.

THE INCOME TAX ACT No 9 0f 2004 138. -(1) For the purposes of administering this Act, the Commissioner and every officer who is authorized in writing by the Commissioner (a) shall have (i) at all times during the day between 9am and 6pm and without any prior notice; and

(ii) at all other times as permitted by a search warrant granted by a district or resident magistrates court, full and free access to any premises, place, document or other asset; (b) may make an extract or copy, including an electronic copy, of any document to which access is obtained under paragraph (a); (c) may seize any document that, in the opinion of the Commissioner or authorised officer, affords evidence that may be material in determining the tax liability of any person under this Act; and (d) may, where a document is not available or a copy is not provided on request by a person having access to the document, seize an asset to which access is obtained under paragraph (a) that the Commissioner or authorized officer reasonably suspects contains or stores the document in any form. (2) In exercising powers under subsection (1), an officer shall, on request, produce the authorization referred to in that subsection to an occupier of the premises or place or to a person having access to the document or asset to which the exercise of powers relates. (3) On request by the Commissioner or an authorised officer, an occupier of the premises or place or a person having access to the document or asset to which an exercise of powers under subsection (1) relates shall provide all reasonable facilities and assistance for the effective exercise of the powers. (4) The Commissioner may retain (a) any document seized under subsection (1)(c) for as long as is required to determine the person's tax liability or for any proceedings under this Act; and (b) any asset seized under subsection (1)(d) for as long as is necessary to obtain access to the document, which document may be retained in accordance with paragraph (a).

(5) A person whose documents or assets are retained under subsection (4) may examine them and, in the case of documents, make copies or extracts from them, at the person's expense, during regular office hours under such supervision as the Commissioner may determine. (6) The Commissioner or authorized officer may request the assistance of the police when exercising powers under subsection (7) For the purposes of this section, occupier in relation to premises or a place means the owner, manager or any other person on the According to the constitution of URT the section which administer the Auditor to perform his/her responsibilities is found under section 143(2(a, b, c), (3), (4), (5), (6) as described (2) The Controller and Auditor-General shall have the responsibility over The following matters: (a) To ensure that the use of any moneys proposed to be paid out of the Consolidated Fund has been authorized and that the funds shall be Paid out in accordance with the provisions of Article 136 of this Constitution, and where he is satisfied that those provisions shall be duly complied with, then he shall authorize payment of such Moneys; (b) To ensure that all the moneys the payment of which has been Authorized to be charged on the Consolidated Fund of the Government of the Untied Republic, or the moneys the use of which has been authorized by a law enacted by Parliament and which have been spent; have been applied to the purposes connected with the use of such moneys and that such expenditure has been incurred in accordance with the authorization for such expenditure; and (c) At least once every year to audit and give an audit report in respect of the accounts of the Government of the Untied Republic, the Accounts managed by all officers of the

Government of the Untied Republic and the accounts of all courts of the United Republic and the accounts managed by the Clerk of the National Assembly. (3) The Controller and Auditor-General and every employee of the Government who is authorized by him shall have the right to examine books records, statements of accounts, reports and all other documents concerning any type of account referred to in sub article (2) of this Article. (4) The Controller and Auditor-General shall submit to the President every report he makes pursuant to the provisions of sub article (2) of this Article. Upon receipt of such report the President shall direct the persons concerned to submit that report before the first sitting of the National Assembly which shall be held after the President has received the report and it shall have to be submitted to such sitting before the expiration of seven days from the day the sitting of the National Assembly began. If the President does not take steps of submitting such report to the National Assembly, then the Controller and Auditor-General shall submit the report to the Speaker of the National Assembly (or the Deputy Speaker if the office of the Speaker is vacant then, or if for any reason the Speaker is unable to perform the functions of his office) who shall submit the report to the National Assembly. (5) The Controller and Auditor-General shall also have responsibility of discharging other duties and functions, and shall have other various powers as shall be specified by the law concerning the accounts of the Government of the United Republic or the accounts of other public authorities or other bodies. (6) In the discharge of his functions in accordance with the provisions of subarticles

(2), (3) and (4) of this Article, the Controller and Auditor-General shall not be obliged to comply with the order or direction of any other person or Government Department, but the provisions of this subarticle shall not preclude a court from exercising jurisdiction to

enquire into whether the Controller and `Auditor-General has discharged his functions in accordance with the provisions.

In the corporate society Act No 15 of 1991 section 48 when the company registered should have internal auditor, prepare its financial statements at each end of year and audited at least once in a year and other regulations contained in this section are administer the audit.The detailed explanations as this section are as follows, 48.-(1) Every registered society other than a primary society shall the approval of the general meeting, employ an Internal Auditor or such number of such internal Auditors as are necessary for the efficient clicking of the accounts of the society. (2) Every registered 'society shall keep proper accounts and other records in relation thereto and shall prepare in respect of every year a Statement of accounts in a form which conforms to the best accounting standards. (3) The accounts of every registered society shall be audited at least once in a year by the corporation or any such competant and registered auditor appointed by the general meeting and approved by the Registrar. (4) As soon as the annual accounts of a registered society have been audited the society shall cause to be sent to the Registrar a copy of the audited balance sheet and statement of income and expenditure prepared in respect of that year together with any report made by the auditors thereon. (5) The auditor's report referred to under subsection (4) shall include an examination of the balance sheet and related income statement and a valuation of assets and liabilities of the registered society.

In the Public corporation Act 1992 section 19 when the public corporation is a sole shareholder should be audited by the Tanzania audit corporation, in case of not

sole shareholders the public corporation hall appoint annually an independent auditor to approve the reports and other regulations contained in this section are administer the audit. The detailed explanations as this section are as follows, Section 19. (a) In case of a public corporation in which the Government is the sole shareholder, be audited by the Tanzania Audit Corporation or by such other person as the Minister- may direct, (b) in case of a public corporation in which the Government is not the sole shareholder, except where the law or other instrument by or under which the public corporation is established provides to the contrary or differently the public corporation shall appoint annually an independent Auditor approved by the Minister. (2) Subject to subsection (1) (a), as soon as the accounts of a public corporation have been audited, the Board of Directors or the person entrusted with the management of the corporation shall send a copy of the statement of accounts together with a copy of any report made by the auditors to the Minister responsible for the parent ministry, and such Minister shall lay a copy of every such statement of accounts and auditors' report before the National Assembly.

In order to perform the audit activity the Tanzania Audit corporation Act direct the corporation to keep proper accounts and proper records in relations which are approved by the minister conforms to the best commercial standards ,sec 9(1). Others from this section 9 are described how this legislation administer the audit in our country. (2) The accounts of the Corporation shall be audited by the Controller and AuditorGeneral.

(3) The Board shall prepare a report on the conduct of its operations in respect of each financial year within six months of the end thereof and shall transmit such report to the Controller and Auditor- General who shall deal with it in accordance with subsection (4). COMPANIES ACT 2002 Cap 212 is one of the legistration which administer the auditor to audit under sec 161(1) (2)a,b,c,d (3)(4) as described below;

161.- (1) A company's Auditors shall make a report to the company's members on all
annual accounts of the company of which copies are to be laid before the company in general meeting during their tenure of office. Auditors' Report (2) The Auditors 'Report shall state whether in the Auditors' opinion the annual accounts have been properly prepared in accordance with this Act, and in particular whether a true and fair view is given (a) in the case of an individual balance sheet, of the state of affairs of the company as at the end of the accounting period; (b) in the case of an individual profit and loss account, of the profit or loss of the company for the accounting period; in the case of the cash flow statement, the cash flow of the company for the accounting period; (d) in the case of group accounts, of the state of affairs as at the end of the accounting period, and the profit or loss for the accounting period, of the undertakings included in the consolidation as a whole, so far as concerns, members of the company. (3) The Auditors shall consider whether the information given in the Directors' Report for the accounting period for which the annual accounts are prepared is consistent with those accounts; and if they are of opinion that it is not, they shall state that fact in their Report. (4) The Auditors' Report shall be read before the company in general meeting and shall be open to inspection by any member.

PUBLIC AUDIT ACT No 11 2008 To the Public Audit Act No 11 of 2008 directs how Independence of National Audit administered the audit in the country under sec 23(1),(2)as is stated below : (1) The National Audit Office shall perform its functions impartially, without fear, favour or prejudice and shall exercise its powers independently subject to the provisions of the Constitution, the provisions of this Act and any other written law. (2) The independence of the Controller and Auditor-General provided for under section 13 shall equally apply to the National Audit Office and its staff.

PUBLIC FINANCE ACT No 6 2001 In this legislation of public finance act No 2001. It gves the power of the Auditors to prepare the reports referring on the audited financial statements and all other regulations and procedures supposed to be supposed to be followed wha described in sec 38(1),(2) and (3) as follows; 38.-(I) The Controller and Auditor-General shall prepare a report on the audit of the accounts referred to in this section and shall transmit the same to the Minister and to the body concerned, and the body may within twenty-one days transmit to the Minister its observations on such report, in which case it shall transmit a certified copy of such observations to the Controller and Auditor-General. (2) The Minister shall, within forty two days of the receipt of a report prepared by the Controller and Auditor-General under subsection (1), cause the same, and any observations made on it by a body under the provisions of subsection (1) and any observations by the Minister, to be laid before the National Assembly.

(3) The Controller and Auditor-General may raise the charge on any body audited or reported on under this section for the costs of conducting the audits and preparing the reports and such charges shall be payable by the body concerned on demand.

AUDITOR AND ACCOUNTANT (registration)Act 1972 This power were given to Auditor and Accountant purposely for empowering internal auditors the

to their authorities and external auditors are subjected to sec 45

(1),(2),(3),(4) and (5) to administer the audit work. 45.-(l) The accounts of every district council, and of every urban authority, shall be audited internally by an internal auditor employed by the authority concerned, and the external auditor for each of those authorities shall be the Controller and Auditor-General (2) The accounts of a township authority shall be audited by such auditor as may be appointed in that behalf by the proper officer in writing with the prior approval of the Minister. (3) The accounts of a village council shall be audited by such public officers or organizations as the proper officer may in writing direct. (4) As soon as possible after the close of the financial year of a local government authority the authority shall submit its accounts for audit to the auditors, who should complete the audit not later than six months after the close of the financial year. (5) Every authority shall permit the auditor to check any cash, investments or other assets in its possession or over which it has control and to have access at all times to all its accounts and all books, vouchers and papers relating them