Public Sector External Auditing in Tanzania: A Theory of Managing Colonising Tendencies

Purpose The purpose of this paper is to advance knowledge and obtain an understanding of the phenomenon of public sector external auditing (PSEA) in Tanzania. Methodology/approach The paper used a grounded theory method informed by a critical approach. It used data from multiple sources including interviews, observations and documents, to provide a theoretical and practical understanding of PSEA in Tanzania. The theoretical aspects were developed ‘in vivo’ and were also informed by the Habermasian concept of colonisation. Findings The principal research findings from the data concern the central phenomenon of managing colonising tendencies in PSEA which appeared to be the core strategy for both the government and external auditors. While the government appeared to manage the National Audit Office of Tanzania (NAOT) appearance and exploited the legitimising features of PSEA, external auditors manoeuvred within colonising tendencies and attempted to maintain the ‘audit supremacy’ image. PSEA in Tanzania encountered colonising tendencies because of weak working relationship between the NAOT and other accountability agencies, inconsistencies in governance and politics, the culture of corruption and secrecy, dependence on foreign financing and mimicking of foreign models. To coexist within this colonising environment, external auditors managed their relationship with auditees and the complexities of PSEA roles. Managing colonising tendencies resulted into obscured subordination of PSEA, contributing to cosmetic accountability and growing public interest in PSEA. Research limitations/implications It is hoped that future research in other countries, in and beyond Africa, will be undertaken to broaden and deepen our understanding of the external auditing of public sector entities. Originality/value The paper combines grounded theory with a critical approach to understand PSEA in a developing country.