INTERNAL CONTROL PRACTICES AND FINANCIAL PERFORMANCE OF FAITH BASED FACILITIES IN KAKAMEGA COUNTY
Abstract
The main objective of the study was effect of internal control practices on financial performance of based facilities in Kakamega County, Kenya. Specifically, the study aimed to establish the effect of risk assessment control practices on financial performance of faith based facilities in Kakamega County. Target population was 285 employees in faith based facilities in Kakamega County. Stratified simple random sampling technique was used to arrive at the population sample. Fisher’s formula was used to arrive at a total of 164 respondents that which was the sample size of the study. Data collection instruments were both primary and secondary. Primary data collection instruments namely questionnaire was used to get firsthand information from the respondents on internal control practices in their facilities. Secondary data collection involved documentary analysis to capture information on financial performance of the facilities. Descriptive and inferential statistics which included mean, frequency and regression was used in this study. The test criteria were to reject the null hypothesis if the value of beta was not equal to zero (β1 ≠0). The results implied 37.7% of change in financial performance is attributed to risk assessment control practices. Therefore the hypothesis was rejected. On conclusion, the study established a statistically significant correlation between risk assessment control practices and financial performance. The findings of the current study formed a basis for reference in future by interested parties.
Key Words: Risk Assessment, Internal Controls
CITATION: Andove, M. K., Fwamba, R. S., & Singoro, B. (2019). Internal control practices and financial performance of faith based facilities in Kakamega County. The Strategic Journal of Business & Change Management, 6 (4), 131 – 141.
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i4.1377
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