ANTECEDENTS OF INTERNAL AUDIT EFFECTIVENESS AMONG DEPOSIT TAKING SACCOS IN WESTERN KENYA

Abstract

The main objective of the study was to examine antecedents of internal audit effectiveness among Deposit Taking Saccos in Western Kenya. The specific objectives were to determine the influence of management support, internal audit independence, Internal audit competence and Internal audit risk management on internal audit effectiveness of Saccos in Western Kenya. The study was founded on three theories, namely, Resource Based View (RBV), Contingency Theory and The Agency Theory. The study was conducted in Western Region, Kenya region comprising of counties of Kakamega, Vihiga, Busia and Bungoma. Descriptive survey research design was applied. The study targeted 129 internal auditors, accountants, finance officers and chief executive officers in all the 15 DT-SACCOS. Stratified random sampling was used to select 97 respondents from a target of 129. Self-administered questionnaire structured on 5-point Likert type scale will be used. Pilot test was done in 12 SACCOs which were not used in the final study. To measure the reliability, Cronbach Alpha technique was employed. The study assessed two types of validity namely; construct and content validity. Data was analyzed using both descriptive and inferential statistics, thus for descriptive mean, standard deviation and percentages were used. The data was tested for normality, multi-collinearity, and autocorrelation and homoscedastic test before regression. For inferential correlation analysis, multiple and step wise regression was used. Data was analyzed using the SPSS 26 software. The findings of the study will be of importance to the managers, Sacco’s members, and government and potential investors. All ethical considerations will be observed.