Determinants of internal audit in the audit of strategic risk of state corporations in Kenya
Date
2013
Authors
Otieno, Victor Odindo
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
This study aims to establish the determinants of internal audit in the audit of strategic
risk in state corporations in Kenya. It further examines the relationship between audit of
strategic risk and the determinants of internal audit. A quantitative research approach
was employed in this research. This was further complemented by a descriptive survey
design. An email based questionnaire was used to collect data. Findings were drawn
from the questionnaire survey distributed to 178 state corporations in Kenya targeting
internal auditors. This study also provides descriptive information on the determinants of
internal audit. The determinants of internal audit were found to play an important role in
the audit of strategic risk. Management support of the functions of the internal audit as a
determinant of internal audit was seen as the most influencing factor compared to the
other determinants, The determinants included independence of the internal audit
function, presence of a risk management unit, budgetary allocation to internal audit, and
internal auditors' skills. Almost all the internal auditors questioned considered strategic
risk as a key determinant in their audit mission. The findings disclose a clear picture of
the determinants of internal audit in the audit of strategic risk, as well as an enhanced
appreciation of the strategic role of internal audit in state corporations. This study
reveals the determinants of internal audit in the audit of strategic risk of state
corporations in Kenya. It also provides a framework that would guide internal auditors
as they audit strategic risk in their organizations. Although this study was limited to state
corporations in Kenya, the findings could be extended to different country settings
which would provide great opportunities for future research.
Description
Submitted in part fulfillment of the requirements for the Degree of Master of Commerce (Forensic Accounting)
Keywords
Auditing, Internal auditing, Strategic risk, state corporations, Kenya