Professional Documents
Culture Documents
MARCH, 2016
DECLARATION
This research proposal is my original work and has not been presented for a degree in
any other University or any other award.
Signature ..
Date ..
Date ..
Mr. Makena
DEDICATION
This work is dedicated to my mother, Mrs. Ruth William, my brother, Katuta Tandasi,
and well as my friend, Nicodemus Juma.
2
ACKNOWLEDGEMENT
I wish to acknowledge my lecturers at Laikipia University for teaching diverse
courses at the university. I also wish to thank my supervisor Mr. Makena for taking
me through this project work. Finally, I wish to acknowledge my boss, Chief
Inspector Julius Mugambi.
TABLE OF CONTENTS
4
DECLARATION......................................................................................................................
DEDICATION.........................................................................................................................
ACKNOWLEDGEMENT......................................................................................................
TABLE OF CONTENTS.........................................................................................................
LIST OF FIGURES................................................................................................................
LIST OF TABLES..................................................................................................................
OPERATIONAL DEFINITION OF TERMS....................................................................
ACRONYMS & ABBREVIATIONS.....................................................................................
ABSTRACT..............................................................................................................................
CHAPTER ONE: INTRODUCTION....................................................................................
1.1 Background of the Study.............................................................................................
1.2 Research Objectives....................................................................................................
1.3 Research Hypothesis...................................................................................................
1.4 Significance of the Study............................................................................................
1.5 Scope of the Study.....................................................................................................
1.6 Limitation of the Study.............................................................................................
CHAPTER TWO: LITERATURE REVIEW......................................................................
2.1 Introduction...............................................................................................................
2.2 Theoretical Review....................................................................................................
2.3 Conceptual Review...................................................................................................
2.4 Summary of Reviewed Literature.............................................................................
2.5 Research Gaps...........................................................................................................
CHAPTER THREE: RESEARCH METHODOLOGY.....................................................
3.1 Introduction...............................................................................................................
3.2 Research Design........................................................................................................
3.3 Target Population......................................................................................................
3.4 Sampling....................................................................................................................
3.5 Measuring Instrument...............................................................................................
3.6 Data Collection Procedures.......................................................................................
3.7 Data Processing and Analysis...................................................................................
REFERENCES.......................................................................................................................
APPENDIX A: CONSENT STATEMENT..........................................................................
APPENDIX B: QUESTIONNAIRE.....................................................................................
APPENDIX C: RESEARCH TIMELINES ........................................................................
APPENDIX D: RESEARCH BUDGET...............................................................................
RESEARCH BUDGET..........................................................................................................
LIST OF FIGURES
Figure 2:1; Conceptual Framework............................................................................14
5
LIST OF TABLES
Freedom
from
conditions
that
threaten
CUEA
EU
GLUK
JKUAT
MU
UoN
VFM
ABSTRACT
The internal audits independence is a critical component in a business that has a
strategic approach to meet organizations vision by having an audit function that can
add value to the organization. In addition, according to Diamond (2002) if auditing is
conducted in house their objectivity is compromised due to the fact that some officials
will be both involved in pre auditing and post auditing. Officials who approve
expenditures in the pre-audit will unsurprisingly be less inclined to question personal
judgment when making post audit decisions. The audit report and opinion must be
9
free from any bias or influence if the integrity of the audit process is to be valued and
recognized for its contribution to the organizations goals and objectives. Several
professional organizations whether they have independence in their assignment or not,
should be careful of non-independent situations. Therefore, an independent judgment
is very much useful and influential as it deals with key elements that depict risk
analysis and it is very important for organizational planning. The fundamental
positioning of the role of internal auditors, it is contended, creates a challenge to their
ability to function with independence. For instance, the role of internal auditors in
providing audit oversight for their organization together with consulting services to
management can cause an ongoing conflict. In their audit role, internal auditors must
remain independent of management by not subordinating their judgment to
management in audit matters. But in their consultative role, they must collaborate
with and support management, including accepting the judgment of the audit
committee of the board of directors. The structured questionnaire will be used for data
collection while data will be analyzed using the SPSS version 21. Both inferential and
descriptive statistics will be utilized.
10
CHAPTER ONE
INTRODUCTION
1.1
The background of the study examines the concept of internal audit, the internal audit
independence and the tertiary institutions.
1.1.1
There are several definitions of audit. Audit has been defined as the systematic
process of objectively obtaining and evaluating evidence regarding assertions about
economic actions and events to ascertain the degree of correspondence between those
assertions and established criteria and communicating the results to interested parties
(Murimi, 2013).Audit has also been defined as the independent examination and
expression of opinion on the financial statements of an enterprise by an appointed
auditor in pursuance of his appointment and in compliance with the relevant statutory
obligations (Bediako-ahoto, 2011).
Similarly, the term internal audit has received various definitions by different authors.
The internal audit has been defined as the process by which a competent independent
person accumulates and evaluates evidence about quantifiable information related to a
specific economic entity for the purpose of determining and reporting on the degree of
correspondence between the quantifiable information and established criteria
(Beyanga, 2011).On the other hand, Kisoka (2012) simply defines the internal audit as
any audit activities carried out by audit professionals who are employees of the entity
that is being audited. The internal audit has also been defined as an independent
objective assurance and consulting activity designed to add value and improve
organizations operations (Onyango, 2014). It helps an organization accomplish its
There are several types of the internal audit including the financial internal audit,
operational internal auditing, management internal audit and value for money internal
audits (Bediako-ahoto, 2011).The financial internal auditing is the embracing of the
conventional tasks of examining records and evidence in order to detect errors and
prevent fraud which includes the reviewing of the routine financial and management
reports looking for trends within the figures thus, being able to identify significant
deviation from the norm (Kisoka, 2012). The operational audit is the comprehensive
examination of an operating unit or complete organization to evaluate its performance
as measured by management objectives which covers the examination of the control
procedures and whether or not they are being adhered to (Beyanga, 2011). On the
other hand, the management internal audit relates to the review and evaluation of the
management structure within the organization and the performance of managers as a
group or individually (Bediako-ahoto, 2011).The purpose is to evaluate the
environment for the exercise of management skills as well as the measurement of
external
management
performance
against
established
criteria
(Onyango,
2014).Finally the Value for Money (VFM) audit focuses on the value for money in
which the audit methodology in which auditors are either required to or exercise
discretionary power to, satisfy themselves, by examination of the accounts and
otherwise, that the organization has made proper arrangements for securing economy,
efficiency and effectiveness (Dawuda, 2010).
1.1.2
The independence of the internal audit is the freedom from conditions that threaten
objectivity or the appearance of objectivity (Murimi, 2013). Such threats to
objectivity must be managed at the individual auditor, engagement, functional and
organizational levels (Kisoka, 2012). Moreover, Objectivity is defined as an unbiased
mental attitude that allows internal auditors to perform engagements in such a manner
that they have an honest belief in their work product and that no significant quality
compromises are made (Baffour & Wittbom, 2009). Objectivity requires internal
auditors not to subordinate their judgment on audit matters to that of others (Njeru,
2013). Auditor independence has long been seen as a key driver of the audit role.
Infinity emphasis historically was on independence and it related to external audit,
expert agents postulate that internal audit should be independent. Internal auditors are
normally employees of the organization. Their independence is recognized as a
distinctive approach to effectiveness, they execute their responsibilities exonerated
and liberated from interference, managing and preventing conflict of interests; having
undeviating confrontation with the senior managements prerogative (Roziani, 2011).
Unrestricted permission and admittance to council records, human resources, various
sections and departments should be the attitude of internal audit department (Ongeri,
Okioga, & Okwena, 2005). Above all, the hiring, recruitment and firing or
retrenchment of the internal audit head should not be under managerial jurisdiction.
some officials will be both involved in pre auditing and post auditing. Officials who
approve expenditures in the pre-audit will unsurprisingly be less inclined to question
personal judgment when making post audit decisions. The audit report and opinion
must be free from any bias or influence if the integrity of the audit process is to be
valued and recognized for its contribution to the organizations goals and objectives
(Njeru, 2013). Several professional organizations whether they have independence in
their assignment or not, should be careful of non-independent situations. Therefore, an
independent judgment is very much useful and influential as it deals with key
elements that depict risk analysis and it is very important for organizational planning.
The fundamental positioning of the role of internal auditors, it is contended, creates a
challenge to their ability to function with independence. For instance, the role of
internal auditors in providing audit oversight for their organization together with
consulting services to management can cause an ongoing conflict (Roziani, 2011). In
their audit role, internal auditors must remain independent of management by not
subordinating their judgment to management in audit matters. But in their consultative
role, they must collaborate with and support management, including accepting the
judgment of the audit committee of the board of directors.
1.1.3
Tertiary Institutions
The higher education sector in Kenya traces its roots to the establishment of the Royal
Technical College of East Africa in 1956. The college was later elevated to University
College of Nairobi in 1963 following the establishment of the University of East
Africa with Makerere, Dar-es-Salaam and Nairobi as constituent colleges. The
university college of Nairobi became a fully-fledged university in 1970 following the
dissolution of the University of East Africa.
The period after the 1980s saw the establishment of additional public universities such
as Moi University (1984), Kenyatta University (1985), Egerton University (1987),
Jomo Kenyatta University of Science and Technology (1994), Maseno University
(2000) and Masinde Muliro University of Science and Technology (2007). These
public universities have in the recent past established satellite campuses in different
towns either on their own or in collaboration with established colleges in those towns.
There has been a tendency of the satellite campuses to break off as independent
universities. In this context, other public universities established in this context
include Dedan Kimathi University of Technology (2012), Chuka University (2013),
Technical University of Kenya (2013), Technical University of Mombasa (2013),
Pwani University (2013), Kisii University (2013), University of Eldoret (2013),
Maasai Mara University (2013), Jaramogi Oginga Odinga University of Science and
Technology (2013), Laikipia University (2013), South Eastern Kenya University
( 2013), Meru University of Science and Technology (2013), Multimedia University
of Kenya (2013), University of Kabianga (2013), and Karatina University (2013).In
addition to the fully fledged universities, there are also constituent colleges of the
public universities that operate in a semi-autonomous manner. The constituent
colleges include Muranga University College (JKUAT) established in 2011,
Machakos University College (UoN) 2011, The Co-operative University College of
Kenya (JKUAT) 2011, Embu University College (UoN) 2011, Kirinyaga
University College (KU) 2011, Rongo University College (MU) 2011, Kibabii
Universtity College (MMUST) 2011, Garissa University College (EU) 2011, and
Taita Taveta University College (JKUAT) 2011.
The private sector has not been left behind in rapid expansion for the higher education
sector in Kenya. There are also 17 chartered private universities in Kenya including
University of Eastern Africa, Baraton (established in 1991), Catholic University of
Eastern Africa (CUEA)(1992), Scott Theological College (1992), Daystar
University( 1994), United States International University (1999), Africa Nazarene
University (2002), Kenya Methodist University (2006), St. Pauls University (2007),
Pan Africa Christian University (2008), Strathmore University (2008), Kabarak
University (2008), Mount Kenya University (2011), Africa International University
(2011), Kenya Highlands Evangelical University (2011), Great Lakes University of
Kisumu (GLUK) (2012), KCA University (2013), and Adventist University of Africa
(2013).The constituent colleges of the Catholic University of Eastern Africa include
Hekima University College, Tangaza University College, Marist International
University College, Regina Pacis University College, and Uzima University College.
The other universities with interim letter of authority to operate include Kiriri
Womens University of Science and Technology, Aga Khan University, Gresta
University, Presbyterian University of East Africa, Inoorero University, The East
Aftican University, GENCO University, Management University of Africa, Riara
University, Pioneer International University, UMMA University, International
Leadership University, and Zetech University.
This rapid expansion of the university student numbers, growth of the parallel degrees
and the increase in number of the universities have placed enormous resources in the
hands of the universities. The internal audit function therefore plays a critical role in
ensuring that these students are prudently utilized. The independence of the internal
auditor is critical in ensuring that the auditors carry an effective check. The leadership
is also involved in the creation of the reporting structure of the internal auditors as
well as the approval of the internal auditors budgets (Lenz, 2013). In the context of
the reporting structure, the internal audit function should have direct access to the
board and senior management by giving it the authority to access any records it deems
fit, by allowing full access to all employees and departments, by placing strict
conditions on the appointment and removal of the head of internal audit, and by not
undertaking non-audit work ( Madi, 2012). Ongeri, Okioga, & Okwena (2005)
observe that the internal auditors are highly influenced by their reporting positions
and hence a reporting structure that includes the senior management is inappropriate
but rather the internal auditors should report to the audit committees. Jie (2013)
further observe that where the internal auditors are subject to
incentives-based
ii.
iii.
The study will be of significance to diverse people including the tertiary institutions
management, the internal auditors within these tertiary institutions, and the
researchers in the subject matter. This study will improve on the body of knowledge
relating to the independence of the internal audit function hence will be useful to the
researchers in the subject matter.
The study will examine the influence of the organizational structure on the
independence of the internal function. The study will in this context indicate the best
practices and weaknesses in the organizational structure and how it affects the internal
audit function. This will assist the tertiary institution management and their internal
audit functions improve on their organizational structures to achieve optimum results.
The study also examines the impact of the dominance of the CEO on the
independence of the internal audit function. The study will give parallels of this
phenomenon across diverse institutions across the world hence exposing the best
practices, and trends which will be of importance to the tertiary institutions and their
audit functions.
Finally, the study examines the role of the budget on the independence of the internal
audit function and hence the study will assist ensure on the best balance between
budget limitations and need for effective internal audit committee.
1.3
The geographical scope of the study will be the Nairobi County due to the numerous
tertiary institutions that are based within the county. The time scope of the study will
be the first half of the 2016 academic year while the budget scope will be limited to
Ksh 10,650 as the study is self-funded.
1.4
The study may experience challenges in the context of data collection as the potential
respondents may fear being quoted discussing the institutions internal audit function.
This will be mitigated through the issuance of the consent letter that details that the
information collected will be for the purposes of an academic paper and ensuring that
the questions remain anonymous in nature.
10
CHAPTER TWO
LITERATURE REVIEW
2.1
Introduction
This chapter will examine the theoretical review, conceptual review, empirical review
and summary of research gaps.
2.2
Theoretical Review
The theoretical framework was based on the agency theory, shareholders theory and
the stewardship theory.
2.2.1
Agency Theory
The agency theory was proposed by Ross and Barry (1973) and later developed by
Jensen and Mecklings (1976) demonstrates the fundamental conflicts of interest
between managers and owners of a firm. The theory examines the separation of the
ownership of a firm, control and management motivation (Nteziryayo, 2014). The
theory therefore examines the relationship between a business firms owners and its
managers who under the law are agents for the owners (Sakalunda, 2014). The agency
theory argues that the principal who is the business owner passes the authority to an
agent to conduct transactions and make decisions on the behalf of the principal with
an effort to maximize the principals utility preferences (Tapiwa, 2014).The agency
relationship is described as a contract (implicit or explicit) in which one or more
persons, the principal(s) engage another person, the agents, to take actions on their
behalf and thus involves delegation of some decision making authority to the agent
(Mawia, 2013). The agents musty have enough motivation and control mechanisms to
always act in a manner that maximizes the profitability of the principals business
(Nyabenge, 2009). This theory is applicable in this study as the researcher is
11
interested in examining the ways in which affect the independence of the audit
committee including the agency related challenges.
2.2.2
Stakeholders Theory
The stakeholders theory was originated by Freeman in 1984 and identifies and
models the groups that are stakeholders of a corporation. The stakeholders are defined
as all the interested parties for whom the firms development and good health are of
prime concern (Ranti, 2011). The stakeholders have also been defined as any group or
individual that can affect or be affected by the realization of a companys objectives.
The stakeholders are divided into the primary and secondary stakeholders. The
primary stakeholders are those actors who entertain a direct and contractually
determined relationship, as the name indicates, with the company and are sometimes
called the contractual stakeholders (Kulundu, 2014).On the other hand, the secondary
stakeholders are those actors who are impacted by a firms actions without having any
contractual connection to the firm.
The shareholders theory indicates that the shareholders or stakeholders are the
owners of the company, and the firm has a binding fiduciary duty to put their needs
first, and to increase value for them (Mbuchi, 2013).The theory recognizes the
importance of the shareholder or the stakeholder in the management of the firm. The
effective organizations will seek to do what is important for its relationships with its
key stakeholders. In this context, Kulundu (2014) argues that the stakeholder theory
attempts to address the question of which groups of stakeholders deserve and require
managements attention. The internal audit helps to raise issues in which requires the
managements action from the operational aspect to the financial integrity of the
systems (Atieno, 2013).
12
2.2.3
Stewardship Theory
The stewardship theory in contrast to the agency theory argues that the firms
directors have interests that are consistent with those of the shareholders (Noah,
2013).In this context, Ngotho (2014) notes that the organizational role-holders are
conceived as being motivated by a need to achieve and gain intrinsic satisfaction
through
successfully performing
inherently challenging
work,
to
exercise
responsibility and authority, and thereby to gain recognition from peers and bosses.
Ngenoh (2013) notes that managers carry their duty with a sense of duty. The
stewardship perspective suggests that the attainment of organizational success also
satisfies the personal needs of the steward (Gad, Shane, & Strong, 2010). The steward
identifies greater utility accruing from satisfying organizational goals than through
self- serving behaviour. Stewardship theory recognizes the importance of structures
that empower the steward, offering maximum autonomy built upon trust (Oketch,
2013). The stewardship theory places an emphasis on the role of structures in ensuring
that the firms interests are catered for. Therefore, the theory is relevant in this study
as the researcher was interested in finding out on how the organizational structure
affects the independence of the audit committee.
2.3
Conceptual Review
Independent Variable
Dependent Variable
Organizational Structure
Independence of internal
auditors
Budgetary Allocations
13
The organizational structure affects the independence of the internal audit function
through impacting on its ability to access critical departments and documentation, and
remove the conflict of interest (Affum, 2011). The reporting structure, the size of the
internal audit function, and the position of the internal audit function within
organizational structure is critical in its effective functioning and independence
(Gacheru, 2013).
The internal audit is part of the organization and examines the work undertaken by the
organization employees including its management. In cases where the management
have conflict of interest in the performance of their duties, are inefficient or corrupt,
they may influence the outcome of the internal audit reports so that they are not
implicated on those reports (Olioko, 2015). The internal audit function may therefore
be structurally placed at high level within the organizational hierarchy and must report
to an audit committee to enable it be devoid of management influence and to have the
required authority to have unrestricted access to the required offices and functions in
an organization (Wondim, 2015). To provide independence, the chief audit executives
report to the chairperson of the audit committee and should only be replaced with
concurrence of that individual.
The conflict of interest within the internal audit function may be prevented through
the creation of a two tier reporting structure and hence improve on their independence
(Kipngeno, 2011). The two tier reporting structure implies that the internal audit
14
function reports to executive management of the organization for policy direction, and
administrative support. The internal audit function must also report to the highest
organizational oversight committee within an organization for strategic direction,
reinforcement and accountability.
Within the context of the management support, the CEOs dominance is a critical
aspect indicating their overall influence over the audit committee and its functions.
This influence of the CEO is exerted through aspects such as preferential selection of
the audit committee members, sitting within the audit committees, and the overall
15
length of the CEOs tenure within the board (Wondim, 2015). These CEOs influences
have an impact on the independence of the audit committee through impacting on the
independence in mind and in appearance.
There are two measures used to measure the degree of the CEOs dominance; the first
is a dummy variable called CEOs influence equal to one if the CEO sits on the
boards committee or if none exist then the whole board acts as a nominating
committee, and zero either wise. The second measure is the amount of time the CEO
has been on the board (CEOs tenure) with longer tenure being indicative of CEOs
control(Olioko, 2015).
The CEO duality that is where the person is the CEO and the chair of the board poses
challenges to the independence of the internal audit function. By keeping in mind the
agency theory there are different arguments some researchers says that CEO duality
diminish the monitoring role of board of directors. On the other hand, the stewardship
theory stresses that a unity of command of a CEO leads to an unambiguous leadership
over subordinates to this. Due to this induces the effective decision making (Wakaba,
2014). In this paper CEO/Chairman duality is taken as independent variable. There
are enormous studies in which corporate governance practices dimensions like board
size, board composition, CEO duality and audit committee were taken as independent
variables (Kasiva, 2012). Some researcher suggest that there is no optimal leadership
structure because duality and separation both have related benefits and costs .CEO
duality causes information problems as he determines the agenda and information to
the board (Jensen, 1993). CEO duality has also been linked to other signs of
ineffective governance, such as in the cases of antagonistic takeovers.
16
2.3.3
The independence of the internal audit function is undermined by the budget allocated
to it and it is important for the internal audit unit to have adequate resources at their
disposal (Okwee, 2011). The efficiency and effectiveness of internal audit units
depends on the availability of resources. Inadequate resources will limit the scope of
audit work (Masui, 2013). The scope of the audit work can be limited in the context of
the geographical locations visited, and the sampling of the work to be audited. The
inability to extend the scope of the audit or have sufficient audit scope may lead to
lapse in the organization (Ogechi, 2013).
The Chief Internal Auditor must ensure that internal audit resources are appropriate,
sufficient and effectively deployed to achieve the approved plan. The required
resources needed by the internal audit unit are normally determined at the early stage
of audit plan so that it can be incorporated into the master budget of the organization
(Marete, 2012). Modern auditing demands the use of appropriate technology and
auditing the technology itself as audit area, developing staffs through several cost
effective means like training. The training and professional development of the
internal auditors is critical to their effectiveness as well as independence from the
management (Ogechi, 2013). Sufficiently trained personnel are able to do their work
without unnecessary direction from authorities or their superiors. They are also able to
make sound and independent decisions in regards to the scope of work that they are
examining (Masui, 2013). The luck of funding may also weaken the audit function as
a whole hence limit its effectiveness.
17
The reviewed literature suggest that the independence of the internal audit function is
affected by the organizational structure in terms of reporting lines, and the position of
the internal audit function within organizational hierarchy. The literature also notes
that budget affects the internal audit independence by limiting the scope of audit
functions.
2.5
Research Gaps
The research gaps of this study is that the phenomenon of the independence of the
internal audit department within the context of the tertiary institutions in Nairobi have
not been examined.
18
CHAPTER THREE
RESEARCH METHODOLOGY
3.1
Introduction
This chapter will examine the research design of the study, the target population, the
sample size, sampling technique, pretesting of the questionnaire and the data analysis
procedures.
3.2
Research Design
The study will adopt the descriptive research design. This choice of the research
design is informed by the fact that the researcher is interested in describing the factors
that affect the independence of the internal audit functions in the universities without
manipulation of variables. The design also allows the researcher to come up with
descriptive statistics that can assist in explaining the relationship that exists among
variables.
3.3
Target Population
The target population of this study will be the internal auditors in tertiary institutions
as well as the management of the tertiary institutions within Nairobi. The simple
random sampling method will be used for the study.
3.4
Sampling
The simple random sampling method will be used in this study. The simple random
sampling technique is used as it minimizes the sampling error as each element in the
target population is accorded equal (unbiased) probability of being selected (Yogo,
2013). A sample size of 100 respondents will be used in the study. Statistically, in
order for generalization to take place, a sample of at least 30 must exist and the larger
the sample size the lower the chances of errors.
19
3.5
Measuring Instrument
The study will use the closed ended questionnaires for the purposes of primary data
collection. The close ended questions were considered appropriate since they
conserved time and they are easy to fill as well as easy to analyse as they are in an
immediate usable form. There are several reasons on why the questionnaire was
chosen as the data collection instrument. According to Wairi (2011) questionnaire are
often used for descriptive research and if worded correctly, they normally require less
skill and sensitivity to administer. The use of the questionnaire is easier to administer
as the respondents are relatively familiar with the concept(Muriuki, 2013). The semistructured questions will be used. The questionnaire will be divided into four parts
that is Part A with the background information and parts B, C, and D with the specific
objectives.
3.5.1
The face validity of the questionnaire will carried out by having subject matter experts
from both the teaching fraternity and practicing internal auditors. These individuals
will be chosen based on their experience and authority on the subject of internal
auditing and they will judge the relevance of the various questions in the
questionnaire.
3.5.2
20
authorities argue for a stronger standard of at least .70(Albus, 2012). The internal
consistency for this instrument is considered high.\
3.6
The data will be collected through the drop and pick method. The drop and pick
method involved the dropping of the questionnaire and picking filled questionnaire
later at predetermined time. There are several advantages of this method and these
advantages informed its choice. The method enables the respondents to fill in the
questionnaire at their convenient time and hence provide more quality results (Kandie,
2013). The method is also likely to yield more fully responded results as there is no
demand to fill the questionnaire when it may not be the opportune time for the
respondents.
3.7
After all data is collected, the researcher will conduct data cleaning, which involves
identification of incomplete or inaccurate responses, which will then corrected to
improve the quality of the responses. After data cleaning, the data will be coded and
entered into the computer for analysis using the Statistical Package for Social
Sciences (SPSS) version 19. Descriptive analysis shall be done and computation of
frequency distribution, mean and standard deviation, which will be useful in
presenting the study findings.
21
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25
APPENDIX A
CONSENT STATEMENT
Dear Participant,
My name is Rita Tatu, Bachelors in commerce student at Laikipia University. You
have been selected as part of the study entitled Challenges Facing the
Independence of Internal Auditors in Tertiary Institutions in Nairobi. I am inviting
you to participate in the research by completing the attached questionnaire.
The questionnaire will not take more than 20 minutes. The information that you will
share with me will not be discussed or accessed by any other person apart from the
researcher and the people directly involved in the project. Your participation is
voluntary and you can withdraw at any time without penalty. Your answers will be
kept confidential. There will be no financial compensation for participating in this
study. The outcome of this research may be used for academic and general purposes
such as research reports, conference papers, or books. By completing the
questionnaire, you indicate that you voluntarily participate in this research.
If you agree to participate in this study, please sign below
Name ( Optional)..SignatureDate..
26
APPENDIX B
CHALLENGES FACING THE INDEPENDENCE OF INTERNAL AUDITORS
IN TERTIARY INSTITUTIONS IN NAIROBI
QUESTIONNAIRE
Instructions: Please complete the following questionnaire appropriately.
Confidentiality: The responses you provide will be strictly confidential. No reference
will be made to any individual(s) in the report of the study.
Please tick or answer appropriately for each of the Question provided.
PART A: BACKGROUND INFORMATION
1) What is your gender?
2) Which of the following best describes your role?
3) How long have you worked in the in the institution
Male
Female
Internal Auditor
Finance Officer
Management Staff
0-5 Years
6-10 Years
11-15 Years
Over 15 Years
(
(
(
(
(
(
(
(
(
)
)
)
)
)
)
)
)
)
S
A
9)
10)
11)
12)
13)
A U D S
D
28
APPENDIX C
RESEARCH TIMELINES
Work Description
Mar
i)
iii)
v)
vi)
Topic Considerations
Proposal Development and Approval
Data Collection
Data Analysis and Approval
29
Apr
May
Jun
Jul
APPENDIX D
RESEARCH BUDGET
Airtime
Internet Bundles
iii) Printing
iv) Binding
v) Transport
Sub Total
Contingency
GRAND TOTAL
Sources of funds: Self
30
Units
Unit Cost
Total Cost
1,000
5,000
250
5
3 trips
(Ksh)
2
1
5
50
500
(Ksh)
2,000
5,000
1,250
250
1500
8,650
2,000
10,650