Internal auditing and financial performance of public institutions in Kenya: A case study of Kenya Meat Commission
Loading...
Date
2017
Authors
Muchiri, Nelius Wangui
Jagongo, Ambrose
Journal Title
Journal ISSN
Volume Title
Publisher
Academic Journals
Abstract
Internal auditing provides audit services to the management at all levels, including board of directors
and audit committee, thus improving the organizations corporate governance. The objectives that
guided the research were effect of corporate governance on financial performance and effect of audit
committee on financial performance. The researcher used case study research design; this was due to
the fact that data was collected from one organization only, that is, Kenya Meat Commission (KMC). The
sample size was all fifty seven management staff at KMC. Open and close ended questionnaires were
used to collect primary data from the respondents. The data collected was quantitative. Descriptive
statistics, time series and regression analysis were used to analyze the data. The data was presented in
the form of tables. The data collected ascertained that internal auditing plays a major role in the
financial performance. The findings of this study, however, are at odds with the aforementioned position.
The researcher found that the relationship between the internal audit function existence and financial
performance at the KMC was insignificant. That is, existence of internal auditing does not influence the
profitability and return on investment. The researcher recommends that the internal audit function
should be more independent and manned by competent staff. There should also be an independent
oversight body to oversee the operations of the state corporation.
Description
Research Article
Keywords
Financial performance, Internal auditing, Corporate governance audit committee
Citation
African Journal of Business Management Vol. 11(8), pp. 168-174, 28 April, 2017 DOI: 10.5897/AJBM2017.8267