Annual general report of the controller and - Parliament of Tanzania

CHAPTER ONE
BACKGROUND AND GENERAL INFORMATION
1.0 Legal Framework for Public Audit in Tanzania
The Office of the Controller and Auditor General of the
United Republic of Tanzania is a constitutional office
established in accordance with Article 143 of the
Constitution of the United Republic of Tanzania 1977
(revised 2005). Public audit in Tanzania is emphasized
under Sect.26 of the Public Finance Act No.6 of 2001
(revised 2004) as ammended by the Public Audit Act No 11
of 2008 and Sect.44 (2) of Public Procurement Act No.21 of
2004.
Sub section (5) of Article 143 of the Constitution of URT
requires the Controller and Auditor General to audit all
Public Authorities and other Bodies at least once in every
financial year. Moreover, Section 37 sub sect (5) of Public
Finance Act 2001 (revised 2004) replaced by Sect 33 of the
Public Audit Act No 11 0f 2008 allows the Controller and
Auditor General to authorize any person eligible to be
appointed as an auditor of a company or any officer to
inspect, examine or audit on his behalf the books of
accounts of any body that the CAG may be required to
audit.
In understanding of the legal framework governing the
audit of Public Authorities, one has to take into
consideration the fact that a number of Public Authorities
are required to operate under the accrual accounting
system which will necessitate these authorities to be IFRS
compliant. In such situation, the Public Authorities legal
framework governing their financial reporting and auditing
will either be the Companies Act No.12 of 2002 or the
enabling Acts of Parliament of the respective Public
Authorities.
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Office of the Controller and Auditor General PA&oBs 2007/08 1