The Effects of implementing audit report recommendations on corporate governance practices in Kenyan parastatals
Date
2024
Authors
Owino, C.
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Corporate governance refers to the regulations, rules and standard operating procedures that direct how organizations and businesses run, manage, and control their operations. It involves the regulations, rules, practices and procedures that guide the regulation, management and operation of the activity’s organizations. Auditing is the objective and thorough study of a company's data, operations, activities, records and financial statements to see if they fulfil specified standards and laws. Thus, the study seeks to determine the effects of implementation of audit report recommendations on corporate governance practices in parastatals in Kenya. The specific objectives of the study were to establish the effect of quality of audit reports, regular-follow up audits and audit action plans on corporate governance practices in parastatals in Kenya. The study was guided by the agency theory, stakeholders’ theory and the signaling theory. correlational research was the anchoring design. The target population of the study involved the management and the board members of the parastatals in Kenya. The target population of the study included 1 auditor, 1 senior manager, 1 accountant and 1 board member as respondents. Stratified sampling was used to selected parastatals from the different ministries to participate in the study. Simple random sampling was used to select respondents who participated in the study from the selected parastatals. The analysis of data was done with the use of SPSS. The results were outlined in the form of descriptive and inferential statistics. From the regression results, there was a significant and positive relationship between quality of audit reports, regular follow up audits and audit action plans with corporate governance practices. The study concluded that quality of audit reports in the Kenyan parastatals is a significant determinant of corporate governance practices among the Kenyan parastatals. The study further concluded that regular follow-up of audits in the Kenyan parastatals is a significant determinant of corporate governance practices among the Kenyan parastatals. The study finally concluded that audit action plans in the Kenyan parastatals is a significant determinant of corporate governance practices among the Kenyan parastatals. The study recommended that the Auditors need to release quality audit reports by ensuring having qualified and experienced auditors and having minimal influence from management. The study further recommended that regular follow up of the previous audit reports needs to be done by the auditor in conjunction with the management. The study also recommended that audit committees or Parliamentary accounts committee needed to draw a formal audit action plan that would guide the process of implementing the audit recommendations where the recommendation issued earlier had not been implemented
Description
Full - text thesis
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Citation
Owino, C. (2024). The Effects of implementing audit report recommendations on corporate governance practices in Kenyan parastatals [Strathmore University]. http://hdl.handle.net/11071/15488