Internal Controls and Corporate Governance.Empirical Evidence from Kenya's Savings and Credit Co-operatives Societies
Journal Title: Africa International Journal of Management Education and Governance - Year 2018, Vol 3, Issue 2
Abstract
Internal controls is part of internal auditing which is an integral part of the corporate governance mosaic in both the public and the private sectors. The purpose of this study was to establish the effect of internal control on corporate governance in Sacco’s in Nairobi County. The study was guided by the Agency and Stewardship theories. This study adopted descriptive research design. The study targeted 45 licensed SACCOS in Nairobi County with a population of 180 respondents who worked for 45 licensed SACCOS by SASRA in Nairobi County. The sample size for the study was 124 respondents. Purposive technique and simple random sampling was used to select a sample size that represented all employees in filling questionnaires. In order to establish the validity and reliability of the instruments, a pilot study was carried out in Eldoret town. Data was analysed using descriptive and inferential statistics. The study findings indicated that there was a statistical significant effect between internal controls and corporate governance in Sacco’s in Nairobi (t=2.412, P<0.05). The study recommended that the SACCOs should improve on the use of internal controls in monitoring their operations in order control consciousness of its employees, they should contact accounting assessment by identifying and analyzing the relevant risks to the achievement of objectives, forming a basis for how the risks should be managed, the policy makers and stakeholders should ensure that the Sacco should comply with rules and regulation of the ministry and taxes payment.
Authors and Affiliations
Hillary Maru, DR. Kennedy B. Mwengei Ombaba
Keywords
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