Effects of internal audit practice on performance of public commissions in Kenya. A case of parliamentary service commission of Kenya

Abstract

Public Commissions in Kenya are importance arms of the executive in the management of constitutional affairs. The aim of this study was to investigate the effects of internal audit on performance of public commissions in Kenya. The specific objectives of the study were; to determine the effect of expertise of the internal auditing staff on the performance of Public Commission in Kenya, to examine the effect of internal audit controls on the performance of Public Commissions in Kenya and lastly, to investigate the effect of top management support of internal Audit on performance of public Commission in Kenya. Parliamentary service commission was the proxy for public service commissions in Kenya. The study was underpinned on two theories namely the agency theory and institutional theory. The study targeted members of internal audit committee of the twelfth parliament – (first session) the national assembly membership of committees. These are the public accountants (19 members), public investment (19 members) and the special fund accounts committee (19 members). Thus, the target population of the study will be 57 people. Due to the population size of parliamentary commission, the study took the census approach to collect data from all the members of the audit committee in the parliamentary service commission. The study followed a descriptive study design. Primary data was collected by the use of questionnaires. Descriptive techniques through the use of descriptive statistics such as mean, frequency, percentages and standard deviations were used. Content analysis was used to collect the qualitative data. Data analysis was done through the use of Statistical Package for Social Sciences (SPSS). Data was then presented using tables and figures. The relationship between variables was achieved through the use of multiple regression analysis. The results indicated that internal audit had positive and significant effect (p-value of 0.001) on performance of public commissions in Kenya. Internal audit expertise had a p-value of 0.000 which meant it had a positive and significant effect on performance. Internal audit controls had a p-value of 0.210 which resulted to positive and but non-significant effect on performance. Top management support of internal audit had a p-value of 0.000 which implied it had a positive and significant effect on performance. The study recommends that managers and policy makers should pay attention to internal audit staff expertise for it has the greatest effect on performance of public commissions.