Compliance implications of pay as you earn audit evidence of the banking sector
Abstract
The research set out to find out whether Pay as You Earn audit has an implication on Pay
As You Earn compliance in the banking sector. A questionnaire was constructed;
(i) To find out the banks that have had P.AY.E. Audit and those that have not been
P.AY.E. Audited.
(ii) To find out the frequencies on P.AY.E non compliant indicators which include
penalties, interest charges, P.A.Y.E audits, additional assessments and audit
adjustments.
Secondary data was obtained from Kenya Revenue Authority audit section relating to all
the commercial banks in Kenya. The data relates to the period from 2000 to 2008.
The data collected was analyzed using frequency tables and percentages as well as a chi
square for independence. The findings were that most banks are P.AY.E audited and
whether audited or not, most of them are affected by non-compliant indicators. The study
revealed that there is no significance difference in P.A.Y.E. compliance between
commercial banks with P.A.Y.E audit and those not audited.
Citation
MBASponsorhip
University of NairobiPublisher
University of Nairobi School of Business, College of Humanities and Social Sciences