dc.description.abstract | The financial performance requires appropriate risk based audit practices hence effective
and efficient internal audit. For the purpose of this study the researcher sought to
determine the impact of risk-based audit on financial performance in commercial banks
in Kenya. This study adopted Correlation research design for it describes the specific
phenomenon in its current trends, current events and linkages between different factors at
the current time. The target population for the study constituted of 44 respondents who
were finance officers, internal auditors, the credit officers, relationship officers/managers
and accountants at commercial banks in Kenya. The study administered questionnaires
which included structured and unstructured questions to all the respondents since it was
the most appropriate tool to gather information. Descriptive statistics such as mean,
standard deviation and frequency distribution were used to analyze the data. Data
presentation was done by the use of pie charts and tables for ease of understanding and
interpretation.
From the findings, the study concludes that risk based auditing through risk assessment,
risk management, annual risk based planning, internal auditing standards and internal
auditing staffing should be enhanced. This would enable the firm to be able to detect
risks on time and concentrate on high risk areas leading to increased transparency and
accountability, hence enhancing financial perfomance. Proper planning improves
efficiency, accuracy, completeness, timeliness, convenience and clarity. Credible audit
reports, auditor independence to identify and rectify audit errors, effective
implementation of audit recommendations, financial management and compliance with
accepted audit standards, effective internal audit staff and independent audit committee
influence financial perfomance in commercial banks. From the findings, the study
recommends that management in commercial banks in Kenya should adopt effective risk
based audit practices such as risk assessment, risk management, annual risk based
planning, internal auditing standards and internal auditing staffing to enhance effective
and efficient financial performance. | en |