Effects of External Auditing on Corporate Governance of Constitutional Commissions in Kenya
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Date
2023
Authors
Odera, Florence Juma
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Through implementing efficient controls and risk management mechanisms to achieve
good governance, effective external auditing enables organizations to satisfy their
financial commitments. The study's aimed to find out the effects of external auditing on
the corporate governance of Kenya's constitutional commissions. The study objectives
include; establish the effect of credible financial statements on corporate governance of
constitutional commissions in Kenya, examine the effect of compliance with governing
laws and regulations on corporate governance of constitutional commissions in Kenya,
determine the effect of fraud detection on corporate governance of constitutional
commissions in Kenya and evaluate the effect of timely audit reports on corporate
governance of constitutional commissions in Kenya. The study was guided by
Stakeholder theory and agency theory. The study adopted descriptive research design.
The research was conducted in 11 constitutional commissions, with a target population of
550. Simple random sampling was used to generate a sample size of 55 individuals
representing 10% of the total population. The data was collected via questionnaires from
the sample respondents and analyzed using the statistical package for social science.
Graphs, pie charts, and tables were utilized to show the qualitative data, while descriptive
notes will be used to present the quantitative data. The researcher conducted a descriptive
study. The study observed that credible financial statements (β=0.388, p<0.05),
compliance with governing laws and regulations were as under: were (β=0.208, p<0.05),
fraud detection (β=0.318, p<0.05) and timely audit reports (β=0.333, p<0.05) were all
significant predictors of corporate governance. The study concludes that external auditing
significantly enhances corporate governance. It was recommended that internal auditors
working in the constitutional commissions in Kenya should work together with external
auditors while promoting a high degree of independence among them. Compliance
audits should be encouraged and undertaken in the constitutional commissions in Kenya.
There is need to invest in State of art forensic technologies for detection of fraud among
employees in the constitutional commissions in Kenya. The external auditors engaged in
the constitutional commissions in Kenya should always ensure that they submit their
independent audit reports on time.
Description
Project Submitted to the School of Law, Arts and Social
Sciences in Partial Fulfilment of the Requirements for the
Award of the Degree of Master of Public Policy and
Administration of Kenyatta University
Keywords
External Auditing, Corporate Governance, Constitutional Commissions, Kenya