EFFECT OF INTERNAL AUDIT ON ENHANCING CORPORATE GOVERNANCE IN DEPOSIT TAKING MICROFINANCE INSTITUTIONS IN KERICHO COUNTY
Abstract
The need to focus on corporate governance has increased particularly in the wake of economic collapse and financial crises The Microfinance Act of 2006 that was enacted on 2nd May 2008 paved way for the transformation of Microfinance Institutions (MFIs) to deposit taking Microfinance Institutions (DTMs) in Kenya. The recommendations were consistent with the literature review. The study recommended that the institutional infrastructure that supports internal audit on enhancing corporate governance in deposit taking microfinance institutions should be improved. This was involved restructuring the laws, offering advanced training to the respondents’ who handle internal audit directly. In addition, the public institutions charged with dealing with internal audit should be reformed to enable them carry out their duties effectively. To further the study the study did not consider the factors that affect the adoption of internal audit in the Kenyan microfinance sector. Therefore, another study should focus on the factors influencing the adoption of internal audit in Kenyan microfinance sector. The study has considered organizations in the microfinance sector. Another study should focus on another sector such as banking sector or the entire financial sector value chain.
Key Words: Internal Audit, Microfinance Institutions
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i4.976
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