Role of Internal Audit as a tool for Public Financial Management in County Governments in Kenya: A case of Vihiga County Government

Abstract

In attempting to sufficiently discharge their responsibilities, internal auditors often find themselves in a deviating position. For instance, they appeal to senior management within the organization, but they are anticipated to evaluate the conducts and effectiveness of the management in objective manner. While internal audit can be used in order to assist management in order to instill a strong ethical tone in the entire organization, a poor attitude by the management can make it hard for the internal auditor to support ethical behavior. Disagreements in different internal auditing roles in promoting public financial management have not gone away with contradicting opinions on how internal audit is expected to perform some activities, with some citing a positive effect and some saying it has very minimal effect if any. The objective of this study was to investigate the roles of internal audit in public financial management in the public sector in Kenya with special focus on the County Government of Vihiga. A descriptive cross-sectional design method was preferred for this study. The target population of this study was the finance department employees of Vihiga County Government where a sample of 53 employees was used. The study collected primary data on the current state of affairs of the County Government. The main instrument for data collection was by use of organized questionnaires. The research was qualitative in nature. This insinuates that descriptive statistics was used. The study found that internal control had the greatest effect on public financial management within Vihiga County Government followed by risk management internal audit independence complemented the two roles. The study suggested that in order for the county government to be effective in its operation and service delivery they should acknowledge contribution of internal auditing. Additionally, the study suggested that for the County Governments to be able to effectively lessen risks they should put in place a strong internal auditing function in its operation. The study also recommended that all County Governments should institute internal controls in its operation to curb various financial losses and enhance optimization of revenues collected. In a similar manner, the study suggested that county governments to endure internal auditing as a tool for effective internal controls so as to realize their objectives set with ease