Audit Committee Characteristics and Performance of Kilifi County Government, Kenya.
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Date
2022
Authors
Ruwah, Phelister Pili
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Kenya embraced the devolved governance system to promote development across the country and also to ensure service delivery is done more effectively by the government to the citizens. It is expected of county governments in Kenya to carry out their mandate and issue services with utmost accountability and openness. Audit committees of the county governments are mandated by the constitution of Kenya to see to it that the counties observe their constitutional and legal obligations to the various groups of stakeholders. With the intention of fostering better performance, county governments are mandated to establish audit committees that will enhance good governance and accountability. This project purposed to bring to light how the audit committees characteristics; (its independence, diversity of the members, experience and meetings) influenced the performance of Kilifi County Government in Kenya. The research project was embedded on the Agency theory Institutional theory, stakeholder’s theory and theory of inspired confidence. Empirical evidence gathered on how the audit committees affect performance was scrutinized, measured and the research gaps identified. Evidenced by some literature reviewed, studies are limited on how the audit committees’ characteristics impact county governments’ performance in Kenya. This research study was founded on a conceptual framework that elaborated the connection linking the audit committee’s characteristics and Kilifi County Government’s performance. Descriptive cross sectional research design was utilized in the research with a target population of 76 people. Purposive sampling was employed to choose informants from the target population. Data for this research project was then gathered by use of questionnaires through drop and pick method and email where necessary. A computer Statistical Package for Social Science (SPSS) program was utilized to analyze the data. Descriptive statistics employed included frequencies, mean and standard deviation, and inferential statistics used was the multiple regression analysis in measuring the variables. The connection linking the dependent variable and the independent variables was assessed using Multiple Linear Regression analysis. Data gathered in this research was displayed by use of frequency distribution tables and bar graphs. The research established that the various characteristics of the audit committees namely; Audit committees’ independence, audit committees’ diversity, audit committees’ member experience and audit committees’ meetings were positively correlated to the performance of the county government. However, it was revealed that the audit committee independence influence on service delivery was not significant. The study arrived at the conclusion that the audit committee characteristics are an important tool for performance however its attributes are not yet fully constituted hence the committee was not very effective. It was also noted that some members of staff were not informed of the existence of the audit committee. The study recommended the county should do a sensitization on its management on the constitution and importance of the audit committee, also so that they may set the tone at the top to enable the audit committee to perform its roles effectively. The audit committees should hold some meetings with top level executives to ensure that their recommendations are implemented and finally, training for related staff like the accountants and internal auditors on the various structures of checks and balances available including the existence and role of audit committee should be done.
Description
A Research Project Submitted to the School of Business in Partial Fulfillment for the Award of the Degree of Master of Business Administration (Finance Option) of Kenyatta University, 2022.
Keywords
Audit Committee, Characteristics, Performance, Kilifi County Government, Kenya