FORENSIC ACCOUNTING PRACTICES AND FINANCIAL PERFORMANCE OF DEPOSIT TAKING SACCO'S IN KISII COUNTY, KENYA
Abstract
The general objective of the study was to establish the effect of forensic accounting practices on the financial performance of Deposit Taking Sacco’s in Kisii County, Kenya. Theoretical scope of the study was grounded in the fraud triangle theory, routine activity theory, rational choice theory, and institutional theory. The study employed a descriptive design because it permitted the researcher to break down associations among a substantial number of factors in a study. The study targeted 91 respondents, comprising of finance managers, operation managers, sales and marketing managers, chief executive officers, credit managers, heads of accounts and heads of internal audit and risk management from 13 deposit taking Saccos in Kisii County. The study used primary data. Self-administered questionnaire structured on 5-point Likert type scale was used. Pilot test was done in 1 SACCOs targeting 9 respondents who were not used in the final study. To measure the reliability, Cronbach Alpha technique was employed. The study assessed content validity. Data was analyzed using both descriptive and inferential statistics, thus for descriptive mean, standard deviation, frequency and percentages was used. The data was tested for normality, multi-collinearity, and autocorrelation and homoscedastic test before regression. For inferential correlation analysis and multiple regression analysis was used. The primary method of analysis involved descriptive statistics, which were used to quantify means and standard deviations based on responses obtained from the questionnaires. Additionally, a linear regression model was employed to ascertain the nature and strength of the relationships among the study variables. The results indicated that fraud investigation, fraud prevention compliance audit and accounting staff expertise have significant positive effect on the financial performance of Deposit Taking Sacco’s in Kisii County, Kenya. The study concluded that forensic accounting practices have significant positive effect on financial performance of Deposit Taking Sacco’s in Kisii County, Kenya. The study recommended that SACCOs in Kisii County should enhance fraud investigation systems, prioritize fraud prevention strategies, conduct regular compliance audits, and invest in continuous professional development for accounting staff. Collaboration with external auditors and training for staff are also crucial for improving financial performance.
Key Words: Fraud Investigation, Fraud Prevention, Compliance Audit, Accounting Staff Expertise
CITATION: Ochieng, A. C., & Miroga, J., Otinga, H. (2025). Forensic accounting practices and financial performance of deposit taking SACCO's in Kisii County, Kenya. The Strategic Journal of Business & Change Management, 12 (2), 257 – 282. http://dx.doi.org/10.61426/sjbcm.v12i1.3210
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DOI: http://dx.doi.org/10.61426/sjbcm.v12i2.3210
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