The Effect Of Internal Controls On Financial Performance Of Public Water Companies In Kenya

Abstract

The purpose of this study is to determine the effect of internal controls on financial performance of public water companies in Kenya. Specifically, the study aims to: establish the effect of segregation of duties on financial performance of public water companies in Kenya, determine the effect of cash reconciliations on financial performance of public water companies in Kenya, evaluate the effect of inventory audits on financial performance of public water companies in Kenya, examine the effect of cost management on financial performance of public water companies in Kenya. The study will use a descriptive survey study research design. The population of the study will be 65 chief internal auditors in Urban WSPs in Kenya as at December 2014. The study will conduct a purposive sampling of the 60 chief internal auditors in Urban WSPs. The study will use primary which will be obtained by use of structured questionnaires. After quantitative data is obtained through questionnaires, it will be prepared in readiness for analysis by editing, handling blank responses, coding, categorizing and keyed into statistical package for social sciences (SPSS) computer software for analysis. The particular descriptive statistics will include frequencies and percentages while the particular inferential statistics will include correlation analysis and regression. Correlation analysis will establish the association between the variables while a multiple linear regression model will be used to test the significance of the influence of the independent variables on the dependent variable.