THE INFLUENCE OF INTENAL AUDIT ON FINANCIAL MANAGEMENT IN MARSABIT COUNTY GOVERNMENT- KENYA
DOI:
https://doi.org/10.47941/ijf.663Keywords:
Financial management, Internal audit, County Government of Marsabit, Public FinanceAbstract
Purpose: The purpose of this study was to determine the effect of internal audit on the financial management in the County Government of Marsabit.
Methodology: The study adopted descriptive survey was adopted for this study. The targeted study population was 63 staff members who are Job group K and above from the department of Finance in the directorate of Accounts, Revenue, Procurement and Internal Audit. The study employed simple structured questionnaires to gather primary data which was analyzed using SPSS.
Results: The study revealed that internal audit function had a significant influence on financial management at the county government of Marsabit (r=0.691, p=0.00)
Unique contribution to theory, policy and practice: Good financial management is very essential in protecting the public funds. This study encourages good practices of accountability, transparency and wealth creation with public funds. The study is beneficial to not only Marsabit County but other counties in Kenya. The study concludes that the Marsabit County has a functional internal audit committee and internal auditors perform their duties with great autonomy and independence. The study further concludes that internal audit has strong positive effect on the financial management in Marsabit County. The study recommends internal audit to be well staffed and resourced so that it is able to carry out regular audits of the county government. This will improve financial management of the County Government since it has been established that internal audit has strong positive effect on the financial management. Additional research can be conducted in the National government on factors influencing financial management and drawing comparisons.
Downloads
References
Ahmad, E. A. (2013). The Politics of Revenue Mobilization. Explaining continuity in Namibian tax policies. Forum for Development Studies, 28(1), 125 - 145.
Alemu Ayneshet Agegnew, D. K. (2019). Assessing the Internal Audit Practice and Its Role in Protecting and Effective Utilization of Public Resources: Evidence from Sector Bureaus in SNNPRS. Research Journal of Finance and Accounting.Vol.10, No.15, 2019, 33-37.
Alhassan, N. (2018). Influence of Internal Audit on Effective Financial Management at the Cape Coast Metropolitan Assembly. International Journal of Academic Research in Business and Social Sciences, 8(9), 977–987.
Ashkul (2016) financial management involves sourcing of funds and utilizing it efficiently to attain objective of the organization
CPAK. (2017). Public Financial Management Reforms in Africa. Nairobi: PricewaterhouseCoopers.
Charles, B. K. (2017). Determinants of the effectiveness of the auditor general in Kenya in public financial management oversight. Strategic Journal of Business & Change Management, 4(2), Article 2. https://strategicjournals.com/index.php/journal/article/view/423
Fritz, V. M., Verhoeven, M., & Avenia, A. (2017). Political economy of public financial management reforms. experiences and implications for dialogue and operational engagement (English).
Gaitho, P. (2018). An Assessment of Financial Reporting and Auditing Practices in County Governments of Kenya. Journal of Public Administration and Governance, 8. https://doi.org/10.5296/jpag.v8i4.13707
Gomes, R. C., Alfinito, S., & Albuquerque, P. H. (2015). Analyzing local government financial performance: Evidence from Brazilian municipalities. Association of International Publishers, 17(6),704-719.
Kothari, C. (2013). Research Methodology: Methods and Techniques. Mumbai: New Age nternational Publishers.
Limperg, T. (1932). Theory of Inspired Confidence. Amsterdam: University of Amsterdam.
Maina, R. W. (2016). The Role of Public Financial Management Practices on Service Delivery in Selected Counties. Unpublished MSc Commerce Thesis, Kenya College of Accountancy University.
Nerantzidis, M., Pazarskis, M., Drogalas, G., & Galanis, S. (2020). Internal auditing in the public sector: A systematic literature review and future research agenda. Journal of Public Budgeting, Accounting & Financial Management, ahead-of-print(ahead-of-print). https://doi.org/10.1108/JPBAFM-02-2020-0015
Nwaobia, A. N., Ogundajo, G. O., & Theogene, N. (2016). Internal Audit Practices and Public Financial Management in Rwanda and Nigeria: Bridging the Transparency Gap in Public Sector Financial Reporting. 2(10), 19.
Okpala, K. E. (2015). Stamatis Generic Model and Audit Quality in Nigeria. 8.
Rahmatika, D. N. (2014). The Impact of Internal Audit Function Effectiveness on Quality of Financial Reporting and its Implications on Good Government Governance Research on Local Government Indonesia. Research Journal of Finance and Accounting, 12.
Welham, B., Hart, T., Mustapha, S., & Hadley, S. (2017). Public financial management and health service delivery. 56.
SID. (2012). Public Finance Reforms in Kenya: Issues and Relevance under the Context of Devolution. Nairobi: SID and Canadian International Development Agency.
Simson, R., Sharma, N., & I, A. (2011). A guide to public financial management literature:For practitioners in developing countries.
Wambui, C., & Njuguna, A. (2017). The effect of Human Resource competency on Financial Management system effectiveness in Health oriented civil society organisation. American Journal of Health, Medicine and Nursing Practice, 35-50.
Ziniyel, D., Otoo, I. C., & Andzie, T. A. (2018). Effect of internal audit practices on financial management. European Journal of Business, Economics and Accountancy Vol. 6, No. 3, 39-48.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2021 Abudo Yohana Dambala, Dr. Nancy Rintari, Fredrick Mutea
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work’s authorship and initial publication in this journal.
