Effects of Timeliness of Audit Reports on the Financial Stability of Matatu SACCOS in Uasin Gishu County, Kenya

Abstract

The Matatu SACCO sub sector in Kenya is not well developed and is characterized by very short life span, sub- divisions into small uneconomical units, with low capital base and poor services, limiting their financial stability. Though having an audit function is important, the quality of the reports from the function is of utmost importance. The purpose of this study is to examine the effects of timeliness of audit reports on the financial stability of matatu saccos in uasin gishu county, Kenya. The study was guided by agency theory and employed Ex post facto research design. A total of 60 Matatu SACCOs have been registered in the county. The target population of this study was all 41 active matatu Sacco’s since the others have since gone dormant. Out of 41 active Matatu Sacco’s in the county, 36 SACCOs were selected for sampling using Krejcie and Morgan table. Both primary and secondary data was collected by use of questionnaire and document analysis guide. Primary data utilized the questionnaire while secondary data utilized document analysis guide. Analysis of data was done using descriptive and inferential statistics. Descriptive statistics such as means, percentages and frequency were applied while inferential statistics like multiple regression analysis were used. All tests were done at 5% significance level. Regression results were as follows: Timeliness had (β =0.507, p=0.000). The study concluded that timeliness of audit reports contributes positively to financial stability of Matatu SACCOs. The study recommended that the management of Matatu SACCOs’ should always ensure that there is timeliness of audit reports. Keywords: timeless, audit, matatu saccos, financial stability, effects DOI: 10.7176/RJFA/13-16-02 Publication date: August 31 st 2022