EFFECT OF THE NUMBER OF STAFF IN INTERNAL AUDIT ON FINANCIAL PERFORMANCE OF BANKS LISTED AT NAIROBI SECURITIES EXCHANGE IN KENYA
Abstract
This study sought to establish the effect of the number of staff in internal audit on financial performance of banks listed at NSE in Kenya. The research adopted descriptive cross-sectional research design. The target population was 135 IA professionals from the 11 Kenyan banks which were listed at the NSE. The research used a random stratified sampling where the population was separated into strata before using simple random sampling to get sample from each stratum. The study applied a method used for picking a sample out of a population that was below ten thousand to obtain a sample size of 100. Collection of primary data was by use of questionnaires while secondary data was gotten financials statements of the banks, CMA website, NSE website well as from CBK website. Data was analysed using multiple linear regression model. The findings and the results showed that number of staff in internal audit affected performance of banks listed at the NSE. The results showed that if there was an increase in number of personnel in internal audit by one unit the result would lead to an increase in results of the subject bank by a factor of 0.0068. Therefore, the number of staff in internal audit had a positive connection with the dependent variable. The main recommendation was for the BODs and other leaders of the subject banking institutions as well as the watchdog, CBK to come up with policies to monitor the number of staff in internal audit to ensure optimal business results.
Key Words: Internal Audit, Financial Performance, NSE
CITATION: Tito, E. O., & Kagiri, A. (2019). Effect of the number of staff in internal audit on financial performance of banks listed at Nairobi Securities Exchange in Kenya. The Strategic Journal of Business & Change Management, 6 (2), 1807 –1817.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i2.1221
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