The Effect of the Quality of Risk-based Internal Auditing on the Effectiveness of Internal Audit in Regulatory State Corporations in Kenya

Abstract

The objective of the study was to determine the effect of the quality of risk based internal audit on the effectiveness of internal audit in Regulatory State Corporations in Kenya. The study considered all the forty Regulatory State Corporations listed on the website of the State Corporations Advisory committee (SCAC). Data was collected by use of questionnaires and analyzed using multivariate regression analysis. Correlation analysis was used to test the relationship between the variables and the independent variable. The study found that the quality of risk based internal auditing and effectiveness of internal audit had a positive significant relationship. The quality of risk based internal audit and management support for internal audit had a strong positive influence on the effectiveness of internal audit in RSCs in Kenya. Management support for internal audit had considerable effect on the availability of resources to internal audit. Professional qualification of internal auditors was found to have no influence on the effectiveness of internal audit.