Determinants Of Internal Audit Effectiveness In Decentralized Governments In Kenya: A Case Of Selected Counties

Abstract

This study was aimed at establishing the determinants of internal audit effectiveness in decentralized governments in selected county governments in Kenya. To achieve this, the specific objectives of the study were to determine the effect of management support on the for internal audit effectiveness, assess the effect of organizational independence on the internal audit effectiveness, examine the effect of competent internal auditors staff on the internal audit effectiveness and to evaluate the effect of audit committee on the internal audit effectiveness in the county governments in Kenya. The counties targeted were Machakos, Kitui, Kiambu, Makueni and Nairobi. The study embraced a descriptive survey investigation design where the target population was 94 respondents comprising of 89 internal auditors and heads of finance in the study counties. The study used census due to the manageability of the population. The data was collected using questionnaires which was both structured and semi structured. Drop and pick later method was used to oversee the questionnaires. Data was scrutinized using both descriptive statistics such as means, standard deviations, frequencies and percentages were used and inferential statistics namely correlation and regression analysis. The study established that all the variables that is top management support, organizational independence, staff adequacy and competence and audit committee are serious determinant factors according to the findings of the study, which must not be ignored by the management. However the study established that the variable with the major influence is the staff adequacy and competence followed by the top management support which are in conformity with the previous studies. The study recommended that management to put more emphasis on the support received by the internal auditors and support the internal audit by providing the department with adequate budgetary allocations. The management should ensure that the internal auditors are recruited in their right proportion so as to reduce shortage of internal auditors in these organizations for effectiveness. Management should also enhance the development of the internal auditors by organizing more seminars and workshops where they could enhance their audit skills. The management should give more autonomy to the internal audit by minimizing interferences, availing documentation whenever required and giving them permission for access to any office or documentation in the organization/departments. The management should also enhance the autonomy of the internal audit by ensuring enough budgetary allocation. Finally, management to encouraging the corporation between the audit committee and the internal auditors as they are charged with the responsibility of ensuring the wellbeing of the internal audit.