Adoption and implementation of key performance indicators by auditing firms in Kenya in their International operations

Abstract

Organizational performance measurement has become a major emphasis for assessing the success of an organization. Almost all organizations in both private and non-profit/public sectors carry out performance measurement to assess whether the organization has been running on the right track, or its performance needs to be improved. The research problem was studied through the use of a descriptive survey. The population of this study comprised of the four major auditing firms with local and international operations targeted by the study. They include KPMG, Price Waterhouse Coopers, Deloitte & Touche and Ernst & Young. This essentially was a census study of the selected firms. The study involved collection of both primary and secondary data for the purpose of analyzing the adoption and implementation of KPIs by auditing firms in Kenya in their international operations. Primary data was collected using a questionnaire administered to 3 managers in each firm. Data collected was purely quantitative and it was analyzed by descriptive analysis techniques. The findings were presented using tables and charts, percentages, tabulations, means and other central tendencies. Tables were used to summarize responses for further analysis and to facilitate comparison. The study concludes that the management team of an organization should be responsible for making strategic decisions on adoption and use of various performance measures. The study recommends that audit program performance indicators should be based on objectives that reflect the audit program mission and organizational objectives and goals.