The Effect of Internal Controls on Revenue Collection by County Governments in Kenya

Abstract

This study sought to examine the part played by internal control system inthe collection of revenue by county governments in Kenya. The objective of this study therefore was to closely look at the internal controls in revenue collection by county governments Kenya with a view to establish whether such internal controls have produced any meaningful results in increased collected revenue. The research was conducted using both qualitative and quantitative approaches. Questionnaires were used on a population of 47 respondents in gathering primary data for the study. The data collected was then analyzed and findings have revealed that the five components of control environment, risk assessment, control activities, information and communication and monitoring must be available for internal controls to work. The study established that weak internal controls activities and lack of proper information and communication systems have encouraged collusion to fraud, loss of revenue and embezzlement of collected revenue. The study therefore concludes that internal controls do function although with hiccups and that there is a significant effect between internal controls and revenue collection in county governments in Kenya.