THE RELATIONSHIP BETWEEN INTERNAL AUDIT AND INTERNAL CONTROLS IN WATER SERVICE PROVIDERS IN KENYA

Abstract

The aim of this study was to establish the association between internal audit and internal controls of Kenyan water service providers. To attain this objective, the researcher collected data on a population of 93 Water service providers. This cross sectional descriptive study that attained a response rate of 78% of the targeted 93 water service provider units was guided by a positivist research philosophy. Correlation analysis and regression analysis was then used to test the hypotheses. Correlation research analysis found a statistically significant positive relationship between internal audit and internal controls. The null hypothesis was rejected as the regression analysis found that a unit change in internal audit leads to a change of 0.505 in internal controls. . This infers that internal audit influences internal controls of Water service providers in Kenya. This study has provided an empirical foundation for investigating the relationship between internal audit and internal controls. Further, the study has made a unique contribution to policy formulation and development to benefit the understanding on how internal audit in the Kenyan context influences internal controls resulting to formulation of reforms in various public institutions to strengthen internal audit.