Browsing by Author "Omucheyi, Rispah Khamonyi"

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    Forensic Auditing and Financial Performance of Kenyan Counties
    (Journal of Finance and Accounting, 2025-01) Omucheyi, Rispah Khamonyi; Abdul, Farida; Kosgei, Margaret
    County governments collect a small percentage of their own source revenue potential and the absorption rate of their budgets are low, this has slowed performance and service delivery. The study sought to find the effect of forensic auditing on the financial performance of the counties in Kenya. Data was collected from financial statements of 45 counties in Kenya in the custody of the controller of budgets for nine years from financial year 2014/2015 to 2022/2023 except Meru and Homabay because financial statements were not found. The study used a dynamic panel model to examine the relationship between forensic auditing and financial performance of all counties in Kenya and analyzed using R statistical tool. The findings showed that forensic auditing has a significant effect on financial performance of counties at first lag. The study concluded that forensic auditing is important and that each county should ensure that they invest in the forensic auditing function. The study recommends that county leadership, including governors, senators, members of the county assembly, and employees, should invest in forensic auditing. The leadership should ensure that accountants are well-trained in forensic auditing processes and consistently apply these skills. All accounting personnel should possess and practice forensic auditing skills. Additionally, county officials should provide supporting evidence for all activities conducted within or outside their counties to facilitate the forensic auditing process. County leadership should focus on spending strictly on budgeted projects, avoiding both overspending and underspending by monitoring ongoing and upcoming projects. Counties should also exhaust all revenue collection avenues and ensure that collected revenue is utilized for its intended purposes to meet collection targets. The study also recommends that the Institute of Certified Public Accountants of Kenya (ICPAK) should ensure its members are equipped with knowledge of forensic auditing by organizing regular training sessions and seminars to support the function. ICPAK should provide recommendations on accounting policies in counties to enhance the quality of financial statements. Furthermore, through ICPAK’s guidance, counties should establish fully functional audit departments and ensure the independence of audit committee members.
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    Moderating Effect of Audit Committees on Forensic Accounting Techniques and Financial Performance of Kenyan Counties
    (Research Journal of Finance and Accounting, 2025-02) Omucheyi, Rispah Khamonyi; Abdul, Farida; Kosgei, Margaret
    The aim of the study is to assess the moderating effect of audit committees on the relationship between forensic accounting techniques indicated by (audit opinion, red flag index, audit expenditure, fraud rate and cases reported) and financial performance (indicated by own source revenue and absorption rate) of counties in Kenya. The research was based on correlational research design using data from audited financial statements of counties for 9 years from financial year 2014/2015 to 2022/2023. Data was analyzed using R statistical tool and the model was subjected to instrument validity test, autocorrelation and model specification test then a dynamic panel model was fit. The outcome showed that audit committee size has a moderating effect on the linkage between forensic accounting techniques and financial performance of counties in Kenya to some extent at first lag. The study noted that most counties did not have an audit committee or the audit committee was not functioning fully. The study concluded that every county should ensure that they have an audit committee to oversee the financial functions. The study recommends that each county government leadership should ensure that an independent and qualified committee is in place to oversee the financial reporting exercise. Institute of Certified Public Accountants of Kenya should ensure that they monitor the counties have a fully functional audit committee. The senate could penalize counties that do not have an independent and working committee