Internal Factors Affecting Internal Audit Effectiveness In Semi-Autonomous Government Agencies In The Ministry Of Environment And Forestry In Kenya

ABSTRACT

This research project aimed at investigating the factors affecting internal audit

effectiveness in Semi-Autonomous Government Agencies in the Ministry of

Environment and Forestry. The study focused on influence of management support,

internal auditor’s autonomy, internal audit staff competence and the role of audit

committee on internal audit effectiveness. The findings of this study were paramount

to the stakeholders in the corporate world and of significant contribution to internal

auditing of an organization’s performance. The academicians and scholars would also

use the results as reference materials in their further research. The insights would also

be relevant to external auditors who are required to consider various aspects of

corporate governance, including the objectivity and quality of Internal Audit. The

study covered all Semi-Autonomy Government Agencies in the Ministry of

Environment and Forestry in Kenya. The theoretical framework of the study was

based on four theories namely: Agency theory, Stewardship theory, Communication

theory and Knowledge-Based theory. The study adopted descriptive research design

whereby the researcher employed the use of questionnaires for data collection. A

sample size of respondents comprising of senior managers, middle level managers,

supervisors and audit assistants was considered for this research. The data collected

was cleaned and inspected for completeness then coded using SPSS Version 20

software. Descriptive statistics such as the mean and standard deviation were used to

describe the data. Further, inferential statistics at 95% level of significance were used.

A Cronbach’s Alpha Test was used to verify the reliability of data collection

instrument. The findings of the study indicated that the internal audit effectiveness

had a positive and significant relationship with the management support, internal audit

staff competence, internal auditor’s autonomy and the role of audit committee. The

findings were supported by the literature reviewed in this study. Based on the findings

of the study, numerous recommendations were proposed. Firstly, the study

recommended development of comprehensive framework to facilitate the recruitment

of internal audit staff. Secondly, the study recommended the embracing of the

technology in the internal audit function in government agencies. Thirdly, a

monitoring and evaluation system was recommended to check on the performance of

the internal auditors. Finally, study recommended more studies to identify other

factors that influenced the internal audit effectiveness in other government agencies.