Investigating the predictors of implementation of internal audit recommendations within banks in Kenya

Abstract

The study investigated the predictors influencing the implementation of internal audit recommendations within banks in Kenya using the Theory of Planned Behaviour (TPB) as a framework, and a mixed methods research approach. The study was motivated by growing concerns about the persistent non-implementation of internal audit recommendations in Kenyan banks, which undermines accountability and effective governance. The findings indicate that attitudes toward audit recommendations and perceived behavioural control significantly impact their implementation. However, subjective norms—the perceived social pressure to comply—did not have a significant influence. Quantitative analysis revealed a positive correlation between attitudes and the implementation of audit recommendations, as well as between perceived behavioural control and implementation. Regression results further confirmed that attitudes and perceived behavioural control were significant predictors. In contrast, subjective norms did not show a statistically significant relationship. Bank size, organizational position and experience were the control variables in this study, and the analysis revealed that banks size plays no significant role in the relationship between the predictors and the implementation of audit recommendations. However, experience and organizational position played a significant positive role. Qualitative thematic analysis supported these findings, highlighting the importance of organizational culture, management support, and employee empowerment in implementing audit recommendations. Participants emphasized challenges such as limited resources, unclear recommendations, and resistance to change, which hinder effective implementation. The study contributes to both theory and practice by demonstrating how psychological and organizational factors shape compliance with internal audit recommendations. It suggests that enhancing employee autonomy, fostering a risk-aware culture, and improving managerial support can strengthen adherence. Regulatory bodies and bank leadership should focus on creating environments that encourage positive attitudes and empower employees to act on audit recommendations effectively.