The Relationship Between Internal Audit and Corporate Governance of Regulatory Authorities in Kenya

Abstract

Audits are essential elements with regards to corporate administration and governance and their aptitude in control has an essential commitment in guaranteeing the adequacy and precision of financial information produced by the organisation. Various studies have been done before to show effectiveness of internal audit on advancing of corporate governance. The vast majority of these past studies concentrated on setting up the relationship that exists between corporate governance and organisational performance, however the relationship between internal audit and corporate governance has not been completely exhausted. The objective and target of the research study was to show that there exists a relationship between internal audit and corporate governance focusing on the regulatory authorities in Kenya. The study embraced a descriptive and inferential research plan. The focus population of this study was all the 44 government regulatory authorities in Kenya. The study utilized population sampling technique to choose one individual from the top managerial staff like directors from each of the regulatory authorities which gave an aggregate of 44 directors. The research study additionally utilized random sampling method to choose 2 staff individuals from the internal audit offices of every regulatory authority in Kenya. Primary data was gathered via semi-structured survey questionnaires. Quantitative information acquired was examined through inferential measurements utilizing help of an instrument known as (SPSS) or in full Statistical Package for Social Sciences series 20.The results were displayed utilizing rates of percentage, tables and frequencies. Moreover, research findings uncovered that administrative controls, inside controls, bookkeeping data, correspondence and operational approaches were extremely effective in the organisations. The study found that risk assessment was excellent in the organizations. It was also found that the audit committee monitors financial and compliance activities of management and ensures that meetings are held during the financial year to discuss matters arising. The study noticed that the corporate governance properties of accountability, transparency, independence, fairness, social responsibility and discipline had greatly improved within the organizations. To guarantee adoption and compliance with laws, controls and regulations the study suggests consistent review of the internal auditor's report by the audit committee to enhance transparency in the internal audit procedures and process.