Effect Of Internal Audit Characteristics On Audit Effectiveness In Semi Autonomous Government Agencies Of Kenya

Abstract

The study aimed to find out how internal audit features affect audit effectiveness in Kenya's semi-autonomous government institutions. The study's specific objectives were to determine the impact of internal audit characteristics on audit effectiveness, determine the impact of internal audit independence on audit effectiveness, determine the impact of internal audit management support on audit effectiveness, and explain how internal audit experience affects audit effectiveness in semi-autonomous governments. Nairobi County, which contains 81 semi-autonomous government agencies, was the target county in Kenya. The study used a descriptive research design, with 81 respondents (one internal auditor per institution) as the target population. Because of the population's manageability, the study employed census data. The information was gathered through closed questionnaires. The respondents were given the research equipment face to face. Data was evaluated using both descriptive and inferential statistics, such as means, standard deviations, frequencies, and percentages, as well as correlation and regression analysis. The study established that the internal auditors of Semi-Autonomous Government Agencies did agree that the internal auditor reports informs management’s decision making; internal audit independence could only be achieved by allowing the internal audit department to perform its responsibilities free from any interference; for the internal audit department to be able to meet its responsibilities, the department must have or be able to attract persons with the required knowledge, skills and experience; the internal audit function helps expedite external audits and that for the internal auditors to be deemed experience, they must have a good understanding of the entity’s system of internal controls. Further, the study results revealed a significant positive relationship between internal audit independence, internal audit management support, internal audit experience as well as independence of internal audit staff and the internal effectiveness in the Semi-Autonomous Government Agencies. The study concluded that internal audit independence, internal audit management support, internal audit experience played a significant role in enhancing the effectiveness of internal audit function in Semi-Autonomous Government Agencies. The study recommended that the heads of the internal audit function should be allowed unlimited access to desired records and information and should be supervised by audit committees. Further, Semi Autonomous Government Agencies should ensure that the recommendations provided by the internal auditors are acted on. The study recommends that there is need for internal audit staff to undergo regular trainings and participate in the development programs to boost their skills and expertise.