Effect of Management Information Systems on the Effectiveness of Internal Audit in the Public Sector in Kenya

Ngugi Grishon Gikonyo ,Agnes Ndinda Mutiso

doi:10.7176/rjfa/11-17-12

Abstract

Governance and core business strategy view internal auditing as vital management tool which focuses on internal controls and monetary assessment. The Kenyan government is grappling with inefficiencies, wastage of resources, fraud, corruption and non-achievement of value for money which calls into question the role of internal auditing in management of resources. The purpose of the study was to investigate the effect of management information system on the effectiveness of internal audit in the public sector in Kenya, a case of the National Treasury. To achieve the above objective, the study was guided by the system theory in an attempt to explain the phenomena under study using descriptive research design. A sample of 139 internal auditors were selected from a target population of Three hundred and ninety-five (395) internal auditors drawn from the National Treasury in Kenya using stratified random sampling technique. Data was collected through online questionnaires sent through emails. The Descriptive statistics and regression analysis showed that management information system (adjusted R=.70) has a positive and significant effect on the effectiveness of internal audit. Further the descriptive findings supported the notion established by other studies that information system plays a vital role in ensuring efficiency and effectiveness of an organization’s operations. Despite of the positive contribution that management information system can provide to an organization, this study found out that the internal auditors in the national treasury have not yet embraced the use of technology in their function and very few of them have been trained on the use of IFMIS which is the information system expected to be used by public entities in Kenya. On the basis of this findings the study recommends that there should be adequate budgetary provision for the requisite equipment, networking and reliable internet for easier communication and faster response as well as for proper training of the internal auditors on the use of IFMIS. These would streamline governance processes, management of risk and control systems and assisting management improving operations of organization. Internal audit effectiveness Governance Management information system DOI: 10.7176/RJFA/11-17-12 Publication date: October 31 st 2020

Highlights

Introduction of the StudyThe structure and organization of public institutions has entrenched internal auditing as an important functional tool for better management of public resources. Huong (2018) states that strict observance of internal controls and monetary assessment is the major conventional area of interest of internal auditors
An internal audit has been defined as the eventual goal of an effective function, demonstrated in realization of the vision of a business entity (IIA, 2010), In Kenya the public sector departments are formulated by the Constitution and the government through various legislations and publicly financed on behalf of its citizens
The study found that (99, 73%) of the respondents had received basic computer training while (23, 15%) of the respondents had been trained on IFMIS and (17, 12%) of the respondents had not received any training

Summary

Introduction

Introduction of the StudyThe structure and organization of public institutions has entrenched internal auditing as an important functional tool for better management of public resources. Huong (2018) states that strict observance of internal controls and monetary assessment is the major conventional area of interest of internal auditors. The structure and organization of public institutions has entrenched internal auditing as an important functional tool for better management of public resources. An internal audit has been defined as the eventual goal of an effective function, demonstrated in realization of the vision of a business entity (IIA, 2010), In Kenya the public sector departments are formulated by the Constitution and the government through various legislations and publicly financed on behalf of its citizens. Clustering ensured Internal Auditors were placed in provincial headquarters from where they conducted audit inspections. Another restructuring of the department was concluded in 1997, centralized and confined under the National Treasury which presents current structuring (Government of Kenya [GOK], 2014)

Methods

Results

Discussion

Conclusion