INTERNAL AUDIT PRACTICES AND FINANCIAL PERFORMANCE OF KENYA TEA DEVELOPMENT AUTHORITY MANAGED TEA FACTORIES WEST OF RIFT, KENYA
Abstract
This study established the relationship between internal audit practices and the financial performance of the KTDA managed tea factories West of Rift. The research aimed to address four specific objectives: (1) to determine the effect of auditor professional competence on the financial performance (2) to assess the effect of internal control on financial performance, (3) to evaluate the impact of audit standards compliance on financial performance, and (4) to determine the influence of internal audit staff independence on financial performance. This study employed a descriptive survey research design because it enabled the researcher to conduct an intensive description and holistic analysis of the entities involved. The respondent’s population comprised of 93 KTDA comprising of Factory Accountant, Assistant Factory accountant and Internal Auditor. A total of 93 respondents were used as the sample size using census sampling technique. Data were analyzed using the Statistical Package for the Social Sciences (SPSS), with results presented in tables and figures. Descriptive statistics were used to determine the relationship between the variables, while regression analysis was employed to establish the extent to which the variables were related and their significance. The results revealed that auditor professional competence, internal control, audit standards compliance and internal audit staff independence have significant positive effect on financial performance of the KTDA managed tea factories West of Rift. In this regard, the study concluded that financial performance of KTDA managed tea factories West of Rift is significantly affected by internal audit practices. To enhance financial performance, KTDA-managed tea factories West of Rift should prioritize skilled auditor development, strengthen internal controls, align audit practices with international standards, and ensure internal audit staff independence. Regular training, clear roles, ethical culture, and robust follow-up mechanisms will support effective audits and informed financial decision-making.
Key Words: Auditor Professional Competence, Internal Control, Audit Standards Compliance, Internal Audit Staff Independence
CITATION: Otucho, R. M., & Miroga, J., Otinga, H. (2025). Internal audit practices and financial performance of Kenya Tea Development Authority managed tea factories west of rift, Kenya. The Strategic Journal of Business & Change Management, 12 (2), 188 – 210. http://dx.doi.org/10.61426/sjbcm.v12i1.3207
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DOI: http://dx.doi.org/10.61426/sjbcm.v12i2.3207
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