| dc.description.abstract | Many state enterprises in Kenya have recently suffered poor performance patterns, which has
jeopardized the sustainability of most of these vital institutions. Some state corporations have a
reputation for repeatedly producing poor results, relying excessively on the exchequer, and losing
their viability. The study's specific goals were to ascertain the extent to which audit quality affects
the organizational performance of commercial state corporations in Kenya, to investigate the
impact of audit independence on those organizations’ performance, and to ascertain the impact of
audit standards on those corporations' performance. At a 95% level of confidence, a similar number
of hypotheses were developed and tested. Three theories served as the study's foundation: the
agency theory, the contingency theory, and the auditor's theory of inspired confidence. In this
Cross-sectional study, descriptive, and correlational research designs were used. The study's target
population consisted of all commercial state corporations, The study used primary data giving a
total of 33 targeted respondents out of which 31 were filled and returned. The questionnaire was
used in data collection. Data were summarized using descriptive statistics, by use of frequencies
and percentages (%), while the causal relationship between the variables was determined using
inferential statistics, using correlation analysis (R-value) and regression analysis (beta coefficients,
R2 & p values). For ease of comprehension and interpretation, the collected data were analyzed
using SPSS version 20.0 and Excel and then presented as tables and figures. The results showed
that audit standards (β = 0.399, p=0.001), audit independence (β = 0.326, p=0.009), and audit
quality (β = 0.254, p=0.018) all significantly and positively affect the organizational performance
of commercial state firms in Kenya. Therefore, the study draws the conclusion that audit standards,
audit independence, and audit quality all significantly and favorably affect the organizational
performance of Kenyan commercial state firms. The study advises policymakers to pay great
attention to internal audit, particularly in monitoring and evaluating procedures to ensure quality
standards. For accountability and openness, the study advises routinely monitoring the audit
department. The results of the study suggest that risk analysis be encouraged at the level of
individual enterprises as well as across the whole range of functions and extensions of the
established organization. The researcher suggests that commercial state organizations might
improve the quality of their audits by creating and putting into practice methods to assess the
auditor's likelihood to find and disclose errors. | en_US |
