Relationship between internal auditing practices and financial performance of savings and credit cooperative societies in Kiambu county, kenya

Abstract

This study intended to examine the relationship between internal auditing practices on financial performance of SACCOS in Kiambu County,Kenya. The objectives of the study included;internal audit planning, setting up audit committees, stakeholders; involvement and audit reporting practices in relation to financial performance. The study was guided by The Positive Auditing and Financial Agency and Stakeholders’ Theories.The study adopted a mixed method approach.Descriptive survey research design was employed since it enabled the researcher to explore different aspects of a research study where the researcherdoes no manipulate variables.The target population for this study comprised of112SACCO Managersand448 Internal SACCO Auditors all totaling to560. Using The Central Limit Theorem, a sample of30SACCOSand147respondentswereselected. There searcher then applied stratified and om-sampling to create12strata based on the number of sub-counties. From each sub-county,3SACCO Managers and 10 Internal SACCO Auditors were selected using purpose sampling.This sampling procedure enabled the researcher to realize a sample of30SACCO Managersand117Internal SACCO Auditors.Questionnaires were used to collect data from SACCO Managers and Internal SACCO Auditors.