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Determinants of Financial Audit in Small and Medium Enterprises In Kenya A Survey Of Audit Firms In Mombasa
| Content Provider | Semantic Scholar |
|---|---|
| Author | Gahman, Swaber Swalah Ali, Abdillahi Ibrahim |
| Copyright Year | 2015 |
| Abstract | The purpose of this study is to find out the determinants of financial audit in small and Medium Enterprises. Specific objectives of the study are; to examine whether internal control system affects audit performance in SMEs; to determine the effects of audit evidence on audit performance in SMEs; to determine whether compliance with accounting standards affects audit performance in SMEs. There are four audit theories according to [1]. They include: Policeman’s theory, lending credibility theory, theory of inspired confidence and agency theory. The problem with the Kenyan SME setting is that SMEs in Kenya rarely use the services of a qualified accountant. This is demonstrated by the [2] who argued that their results showed that book keeping practice of the SMEs in Kisii Municipality is not adequate and this may negatively affect the financial performance. [3]Also found that small business failure inevitably showed poor or careless financial management.In this research, the researcher collected primary data through questionnaires and secondary data was collected from internal records. The Researcher used descriptive design in collecting the data from respondents. The target population was from Auditing Firms in Mombasa, while the study population will concentrate on Accounting and Auditing Staffs in their Audit Firms. The total population of the study was sixty five (65). From the target population of 65, a sample size of fifty six (56) respondents was undertaken. The researcher used simple stratified sampling procedure based on employees of Audit firms, whom were classified in Accounting and Auditing department. Presentation of quantitative data will be performed using Statistical Package for Social Science (SPSS Version 17) and the information generated will be presented in form of Tables, Pie-charts and Bar graphs only where it provides successful interpretation of the findings. Descriptive data will be provided in form of explanatory notes. The research study established that internal control systems, audit evidence and compliance with accounting standards. There is need to evaluate company’s internal control systems as factor determining financial audit in SMEs; to implement best practices to help companies to manage their books of accounts; develop accounting policy focusing on the achievement of the minimum risk of users of information to enhance credibility. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://iosrjournals.org/iosr-jbm/papers/Vol17-issue5/Version-1/P01751135145.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
