scholarly journals Internal Auditors’ Independence and Financial Performance of Listed Banks at the Nairobi Securities Exchange

2019 ◽  
Vol 7 (02) ◽  
Author(s):  
Elicana Mwiti Mburunga ◽  
Dr. Elijah Walubuka ◽  
Mr. Ignatius Gichana
Keyword(s):  
Financial Performance ◽  
Work Performance ◽  
Negative Impact ◽  
Internal Audit ◽  
Sampling Technique ◽  
Target Population ◽  
Auditor Independence ◽  
Primary Data ◽  
Internal Auditor ◽  
Internal Auditors

The internal audit function plays a significant role in the financial performance of banks as it tasked with not only carrying out an oversight function but also providing assurance to their stakeholders. It is also required of an internal auditor to undertake assessment on the status of internal controls as well provide recommendations on the same albeit independently. However, these functions are adversely influenced by interference from top management leading to a significant negative impact on the financial performance of banks. Specifically this research based its investigation on the influence of internal auditors’ independence on financial performance of listed banks at the Nairobi Securities Exchange (NSE). The study is pivoted on two theories; Agency Theory and Market Power Theory. This research was guided by Descriptive survey research design. The study’s target population constituted of 76 Audit Managers and Internal auditors. A sample size of 76 final sampled subjects was used and respondents selected using Census sampling technique.  A questionnaire was prepared and used for primary data collection from the target final sampled subjects. Descriptive statistics was employed in the analysis of quantitative data while narratives guided by themes under research were employed in the reporting of qualitative data. A Chi Sqaure was employed to test hypothesis. The research established that limited or minimal internal auditors’ independence negatively influenced financial performance of listed banks at the NSE. In particular, the study established that the existence of an internal audit budget as a measure of improving internal auditors’ independence influenced the financial performance of commercial banks listed in NSE. Additionally, this research established that recognized the need to enhance of Internal audit as a training ground for managers meaning most of the study’s final subjects appreciated the need to gain experience prior to been promoted to an audit manager position for excellent work performance. The scholarly investigation concluded that internal audit budget that determines internal auditors’ independence has a significant influence on the financial performance of listed banks. The research recommends that as a measure of enhancing internal auditor independence, commercial dependable banks listed at the Nairobi Securities Exchange (NSE) should invest financial resources in the form of a budget to their internal audit departments.  

Financial Misappropriation in the Nigerian Public Sector: A Determination of the Role of the Internal Auditor

2017 ◽  
Vol 3 (2) ◽  
pp. 7-17
Author(s):  
J. K. Oyadonghan ◽  
S. Ogoun
Keyword(s):  
Public Sector ◽  
Research Effort ◽  
Internal Audit ◽  
The State ◽  
Least Square ◽  
Primary Data ◽  
Economic Management ◽  
Internal Auditor ◽  
Internal Auditors ◽  
The Public

The continued search for a solution to the problem of poor economic management due to financial misappropriation in the public sector, and the public’s outcry against internal auditors because of their perceived connivance necessitated the current study. Furthermore, the position canvassed by internal auditors with respect to their scope of responsibility further justified the need for this research effort. Accordingly, this study was undertaken to determine, whether or not, the internal auditor has a role to play in ensuring the proper utilization of the nation’s economic resources, bearing in mind the rules specifying the scope of the internal audit function in the public sector. Drawing from the research model of survey design, both a structured questionnaire and oral interview data collection platforms were deployed to collect primary data from audit, and another staff of selected ministries in the State and the least-square regression analysis was adopted in testing the hypotheses. From the analysis, and from personal interview, the researchers were able to find out that internal audit has a responsibility to detect and prevent financial misappropriation in the public sector. It was also found out that the internal auditors in the State Civil Service are not independent, which affects their freedom to report such acts of financial misappropriation to the legislative arm for proper action. Therefore, it is recommended that The State legislative arm should ensure that the independence of the internal auditor is guaranteed by a statute.

scholarly journals Effect of Budgeting on Financial Perfomance of Youth Groups Funded by Youth Entreprise Fund in Kapsaret Sub-County, Kenya

2020 ◽  
Vol 9 (3) ◽  
pp. 20-27
Author(s):  
Kevin Otieno Owembi ◽  
Keyword(s):  
Financial Performance ◽  
Research Design ◽  
Sampling Technique ◽  
Target Population ◽  
Test Method ◽  
Primary Data ◽  
P Value ◽  
Chi Square ◽  
Youth Groups ◽  
Ex Post

The study examined the effect of budgeting on financial performance of the Youth Groups at Kapsaret Sub-County. The study sought to answer the following questions; extent of budgeting by the youth groups at Kapsaret sub-county, factors affecting budgeting implementation and financial performance by the Youth Groups at Kapsaret Sub-county and budgeting effects on financial performance by the youth groups at Kapsaret Sub-county. The research design adopted for this study was Ex post-facto research design, the target population was the 82 youth groups being funded by the various financial institutions and YEDF in Kapsaret Sub-County Stratified sampling technique targeting youth groups managers and treasurers of the youth groups was used, 5 stratums were drawn from Kapsaret sub-county and data collected through simple random sampling technique. questionnaires administered to the target population was the source of primary data, Validity of questionnaires was tested using a pilot study on 6 Youth Groups out of the sampled groups and reliability was tested using the test-re-test method, descriptive statistic was used to analyze quantitative data presented through frequency tables, percentages, mean scores and standard deviation, chi-square was used to test the hypothesis. The study finding on the effect of standardized budgeting on financial performance using chi-square with the computed X2 value of 0.610 and the P-Value of 0.435,the study established out that there was no evidence of a relationship between standardized budgeting and financial performance yet on the effect of budgeting on financial performance computed X2 value was16.970 and the P-Value was 0.000, the study established out that there was evidence of a relationship between budgeting and financial performance. The study recommends that there should be effective budget implementation within the various youth groups particularly those funded by the YEDF, more funding should be provided to the youth groups funded by YEDF, more training and seminars to be offered to the youth groups on preparation and implementation of budgets and there should be constant monitoring and evaluation of the youth groups budgets and budgeting system by fund managers over time within the youth groups. Keywords: Budgeting, Financial Perfomance, Youth Entreprise.

PENGARUH BUDAYA ORGANISASI, MOTIVASI DAN PROFESIONALISME TERHADAP KINERJA AUDITOR INTERNAL (Survey pada BUMN Sektor Jasa Keuangan & Asuransi di Kota Bandung)

LAND JOURNAL ◽  
2021 ◽  
Vol 1 (1) ◽  
pp. 108-131
Author(s):  
Ruslina Lisda ◽  
Sukesih Sukesih
Keyword(s):  
Organizational Culture ◽  
Sampling Technique ◽  
Simple Random Sampling ◽  
Test Reliability ◽  
Primary Data ◽  
Coefficient Of Determination ◽  
Internal Auditor ◽  
Verification Method ◽  
Internal Auditors ◽  
Culture Motivation

This study aims to examine and analyze how much influence Organizational Culture, Motivation and Professionalism to the Performance of Internal Auditors. Population in this research is Internal Auditor and Internal Supervision Unit in the State Industry Companies financial and insurance services in Bandung City. The number of seals taken as many as 46 respondents. The research method used is descriptive and verification method. Data collection techniques are done through primary data with questionnaires. Sampling technique using Probability Sampling technique using Simple Random Sampling method. Statistical analysis used in this research are validity test, reliability test, multiple correlation analysis, multiple regression analysis, T test, F test, and coefficient of determination. Simultaneously shows that the magnitude of the influence of organizational culture, motivation and professionalism to the performance of internal auditors of 70,7%, while the rest of 20,3% influenced by other factor not observed in this research. Thus, the higher the organizational culture, motivation and professionalism will further improve the performance of internal auditors.

ACCESS TO MICROCREDIT DETERMINANTS AND FINANCIAL PERFORMANCE OF SMALL AND MEDIUM RETAILING ENTERPRISES IN WAJIR COUNTY, KENYA

2017 ◽  
Vol 2 (6) ◽  
pp. 103
Author(s):  
Nasteha Kanyare ◽  
Dr. John Mungai
Keyword(s):  
Financial Performance ◽  
Random Sampling ◽  
Small And Medium Enterprises ◽  
Sampling Technique ◽  
Simple Random Sampling ◽  
Target Population ◽  
Primary Data ◽  
Eligibility Criterion ◽  
To Come ◽  
Medium Enterprises

Purpose:  The purpose of the study was to establish the effect of determinants of access to microcredit on financial performance of retailing SMEs in Wajir County, Kenya.Methodology: The study adopted a descriptive survey research design. The target population comprised of all the 5000 retailing small and medium enterprises in Wajir County where the units of analysis were the SME owners. The study used stratified random sampling and simple random sampling technique to come up with the sample. The target population was stratified into 6 strata (the 6 sub-counties in Wajir County). Further, random sampling was used to select 146 SMEs from each sub-county. The study used primary data which was largely quantitative and descriptive in nature. The questionnaires were self-administered with the help of two research assistants. The data analysis was undertaken using SPSS Version 20 where the statistics generated included descriptive statistics and inferential statistics.Results: The study findings revealed that savings, meeting the eligibility criterion, loan structuring and some socio economic characteristics positively and significantly affected the financial performance of SMEs in Wajir County.Unique contribution to theory, practice and policy: the study recommended that SMEs should take the initiative to increase the amount they saved so that they could increase their borrowing capacity. The study also recommended that SME owners needed to take the initiative of ensuring that they were all the time able to meet the necessary requirements needed for obtaining loans especially their documentation, business and repayment plans and aim at ensuring that they acquired the necessary collateral. It was further recommended that MFIs needed to ensure that the loan structure presented to SMEs were favorable. The study also recommended that it was necessary for SMEs to expand/grow their asset base so as to increase the ability to repay the loans. They also needed to expand their networks especially within the financial institutions circles so that they could increase the trust the MFIs had on them and for easy considerations for loans.

scholarly journals MODEL PENGUKURAN KUALITAS AUDIT INTERNAL

2017 ◽  
Vol 17 (3) ◽  
pp. 299
Author(s):  
Ida Rosnidah
Keyword(s):  
Audit Quality ◽  
Internal Audit ◽  
Measurement Model ◽  
Primary Data ◽  
Private Companies ◽  
Internal Auditor ◽  
Internal Auditors ◽  
State Enterprises

Internal auditor’s independence is sometimes in doubt. This makes sense because the internal auditor is an integrated part of the organization. As a part of the organization, the internal auditor has a role to audited financial statements, give some suggestions and recommendations that can be used as the basis for making some decisions in the future. The lower of internal auditor’s independence has an impact audit quality, that can make the role of internal auditor degrade. So, the quality of internal auditor still becomes an important issue until  now. The purpose of this study is to establish a measurement model of internal audit quality based on the influencing factors not only independence, but also competence, professionalism and motivation. This study uses primary data by distributing questionnaires spread to 60 internal auditors who work  in  inspectorate, private companies, state enterprises (BUMN) and local government enterprises (BUMD) in Cirebon District and Municipalities. Data analysis method used is single stage multivariate model among variables/pathway analysis. The results show that the competence, independence, professionalism and motivation affect the quality of internal audit either partially or simultaneously, and competence contributes the most to the quality of the internal audit. Thus, this research model can be used to measure the quality of internal audit.

scholarly journals The effects of human resources in internal audit on external audit pricing decision

2018 ◽  
Vol 15 (4-1) ◽  
pp. 165-180
Author(s):  
Moon Kyung Cho
Keyword(s):  
Small Firms ◽  
Internal Audit ◽  
Audit Fees ◽  
Auditor Independence ◽  
Professional Judgment ◽  
External Audit ◽  
Internal Auditor ◽  
Internal Auditors ◽  
External Auditors ◽  
General Internal

This study presents evidence that external audit fees are negatively and significantly associated with the proportion of general internal auditors. Further, external audit hours are negatively and significantly associated with the proportion of general auditors without affecting external unit audit price. In addition, the results of the data adjusted for firm size suggest that audit fees and audit hours decrease for smaller firms as the proportion of general internal auditor increases. The result implies that both small firms and their external auditors are encouraged to utilize more general internal auditors in performing an external audit. The author finds no evidence that external audit fees are associated with internal auditor expertise or experience. This shows that external auditors are not likely to rely on internal auditors’ professional judgment in performing an external audit due to reduced auditor independence.

scholarly journals KUALITAS AUDIT MELALUI ANALISIS FAKTOR- FAKTOR INDEPENDENSI DAN PROFESIONALISME AUDIT INTERNAL

2021 ◽  
Vol 10 (1) ◽  
pp. 16-23
Author(s):  
Ari Bramasto ◽  
Sri Dewi Anggadini ◽  
Asri Syahriani
Keyword(s):  
Audit Quality ◽  
Internal Audit ◽  
Statistical Test ◽  
Primary Data ◽  
Financial Reports ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Verification Methods ◽  
Data Collection Technique

ABSTRACTAudit quality is the accuracy of information reported by the auditor in accordance with the auditing standards used by the auditor including information on accounting violations in the company's financial reports, for that the role of the internal auditor is important for the sustainability of the company, where its role is to provide continuous supervision and assessment, the resulting audit quality depends of the independence and professionalism of the auditors themselves. This study aims to determine how much influence the independence of Internal Audit on audit quality and how much influence the professionalism of internal auditors on audit quality at PT Foximas Mandiri Bandung.The method used in this research is descriptive and verification methods. The population in this study were employees of PT Foximas Mandiri Bandung. Sampling was done using the Census Technique, with a sample of 26 respondents. The type of data used in this study is primary data. The data collection technique used statistical test modeling using the SPSS V.22 program.The results of this study indicate that: 1) The independence of the Internal Audit has an effect on audit quality, the internal auditors are free from pressure or managerial intervention and avoiding the use of unclear language in the audit report being the factor with the lowest gap, namely 9.23% 2) Professionalism of Internal Audit influence on audit quality, confidence in perophysical regulations is the factor with the lowest gap, namely 1.54% .

scholarly journals EFEKTIVITAS SATUAN PEMERIKSAAN INTERNAL PADA UNIT BADAN LAYANAN UMUM

2020 ◽  
Vol 20 (1) ◽  
pp. 135
Author(s):  
Adhini Wijayanti ◽  
Harti Budi Yanti ◽  
Ice Nasyrah Noor
Keyword(s):  
Public Service ◽  
Work Experience ◽  
Internal Audit ◽  
Primary Data ◽  
Service Agency ◽  
Management Support ◽  
Internal Auditor ◽  
Internal Auditors ◽  
The Public ◽  
Independent Variables

<em>The purpose of this study is to examine the factors that influence the effectiveness of Internal Audit (Internal Audit Unit) in the Public Service Agency unit of the Ministry of Transportation office, Jakarta, including Internal Auditor Competency, Objectivity of Internal Auditor, Management Support and Work Experience. There are 3 (three) independent variables that affect the effectiveness of Internal Audit as the dependent variable, namely Internal Auditor Competency, Objectivity of Internal Auditor, Management Support with Internal Auditor Work Experience (Internal Audit Unit) as a moderating variable. The population in this study was 110 internal auditors working in the Internal Audit Unit of the Public Service Agency's Office of the Ministry of Transportation. This study uses primary data in the form of questionnaires, 100 questionnaires can be processed using the method of Multiple Linear Regression. Based on the analysis of the independent variables significantly positive effect on the dependent variable with Work Experience as a moderating.</em>

scholarly journals The Impact of Internal Audit on Financial Performance of Deposit Money Banks in Nigeria

2021 ◽  
Vol 4 (3) ◽  
pp. 139-149
Author(s):  
Alashe A.K. ◽  
Bello A.O.
Keyword(s):  
Linear Regression ◽  
Financial Performance ◽  
Positive Relationship ◽  
Internal Audit ◽  
Sampling Technique ◽  
Primary Data ◽  
Internal Auditing ◽  
The Impact ◽  
Positive Effect ◽  
Reporting Channels

The main aim of this seminar paper is to investigate the impact of internal audit on financial performance of money deposit banks in Nigeria. The population of this study was 22 commercial license banks in Nigeria in which 16 money deposit banks were sampled using judgmental sampling technique and hypergeometric formula. Primary data with respect to questionnaires were used to collect data. 15 questionnaires were distributed to each sampled bank but in all the 360 questionnaires distributed, 334 questionnaires were correctly retrieved and found usable. The research tools used were Ordinary Linear Regression (OLS) with correlation, Adjusted R Square and Standard Error using IBM SPSS Statistics 20 software. The result(r=28.9%) showed that there was a relationship between internal audit and the profitability of money deposit banks in Nigeria. Also, internal audit reporting channels have a positive effect (r=25.5%) on financial performance of money deposit banks in Nigeria. The study concluded that there was a positive relationship between internal audit and the financial performance of money deposit banks in Nigeria. Likewise, internal audit reporting channels have an effect on financial performance of banks in Nigeria. The study recommended that money deposit banks in Nigeria should strengthen their internal audit and their internal auditing reporting channels as they were both important to their financial performance.

scholarly journals Analysis of Professionalism Relationships and Work Stress on Working Interest in Internal Auditors With Work Satisfaction As A Mediation Variable

2019 ◽  
Vol 1 (3) ◽  
Author(s):  
Poppy Veone Helsya ◽  
Yurniwati Yurniwati ◽  
Nini Syofriyeni
Keyword(s):  
Job Satisfaction ◽  
Job Stress ◽  
Work Stress ◽  
Sampling Technique ◽  
Partial Least Square ◽  
Least Square ◽  
Primary Data ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Desire To Change

This study aims to look at the Analysis of the Relationship between Professionalism and Job Stress Against the Desire to Switch Internal Auditor Work with Job Satisfaction as a Mediation Variable. Research uses primary data sources, namely online questionnaires using purposive sampling technique. Data analysis using the Partial Least Square (PLS) approach using SmartPLS software. The results of the study illustrate that professionalism is related to job satisfaction, work stress related to job satisfaction, job satisfaction is related to the desire to change the work of internal auditors, professionalism is related to the desire to change the work of internal auditors, work stress is related to the desire to change the work of internal auditors, influential professionalism with desire change the work of internal auditors through job satisfaction. Job stress influences the desire to change the work of internal auditors through job satisfaction.

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