Authors: Patricia Mumo Kimuli, Fredrick Warui
Kenyatta University, P.O. Box 43844-00100, Nairobi, Kenya
Author Email: patricia.mumo@ndma.go.ke
Abstract: State owned corporations are very important in providing financial solutions in order to foster public service delivery and economic development. However, irrespective of this crucial role, these enterprises face numerous challenges, and they have over years recorded dismal performance as a result of poor financial management, different financial reporting formats, increased corruption, poor governance, political interference and others. In the past, a number of initiatives were undertaken to enhance the financial management among state corporations. These were initially necessitated by the fact that the roles of the Parliament and Auditor General had been previously ignored. As such, the purpose of the current study was to examine influence of internal and external audit reforms on the performance of Non-Commercial state corporations in Kenya. Descriptive design was employed by the study to gather descriptive information about the state of affairs as they exist. The study targeted state owned enterprises in the State executive agencies category in Kenya. There are 62 state- owned enterprises in this category in Kenya. The target respondents comprised of the finance managers. Purposive sampling method was used to select the sample. Questionnaire was the major data collection instrument employed by the study. Both descriptive and inferential analysis methods were used. The descriptive analysis was used to give an overview of the respondents and state-owned non-commercial enterprises. The inferential analysis involved the use of regression analysis. The study concluded that proper implementation of control reforms contributes to performance of noncommercial state corporations. Effective internal audit, proper control environment, and effective risk management contributes to increased accountability and transparency in public funds management.
Key Words: External audit reforms, internal audit reforms, Non-Commercial State Corporations performance, company performance, State Corporations reforms.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Suggested Citation
Mumo, P. K., Warui, F. ( 2023). Influence of internal and external audit reforms on the performance of Non-Commercial State Corporations in Kenya. Journal of Management and Business Administration, 4(1), 17– 26. Available online at http://writersbureau.net/journals/jmba/influence-of-internal-and-external-audit-reforms-on-the-performance-of-non-commercial-state-corporations-in-kenya.pdf
