Effectiveness of Internal Audit Control in Public Financial Management: Case of Turkana County, Kenya

Abstract

A robust public financial management system is the cornerstone for any government, particularly developing countries. Transparent and equitable public finances provide a platform for governments to deliver a strong enabling environment for business and effective public services. Most County governments in Kenya have not been able to mobilize resources effectively resulting to under development and poor service delivery that do not meet citizens’ expectations. The general objective of the study is to examine the effects of internal audit mechanism on public financial management of the county government of Turkana. The study sought to evaluate the effect of internal audit control on public financial management in Turkana County, assess the effect of internal audit compliance on public financial management in Turkana County in Kenya. The study was guided by the new public management theory. Explanatory research design was adopted to establish the causal relationship between the study’s variables. The target population comprised of 273 employees. The study conducted a census. Data were collected through structured questionnaires. A pilot study to test the validity of the research instruments was conducted using 10 % of the sample size which was excluded during the actual data collection phase. Reliability of the instruments was established using Cronbach Alpha coefficient which recommends a coefficient of 0.7 and above. The Statistical Package for Social Science version 26 was used to analyse the data collected.  Data was analysed by use of both descriptive and inferential statistics comprising of percentages, means and standard deviation, Pearson product moment coefficients and multiple regression in form tables. Findings revealed that internal audit control positively and significantly affects public financial management in Turkana County (β = 0.127, p = 0.007). The study concluded that the internal audit function within Turkana County improves financial management practices. Internal audit department enhances adherence to regulatory requirements. Process audits identify weaknesses or deficiencies in internal controls, thus facilitating timely corrective actions. Internal audit reports enhance control mechanisms through provision of clear and actionable recommendations for improvement. It is recommended that the county government of Turkana continuously reviews and updates financial accountability measures. To optimize its effectiveness, the county government of Turkana’s internal audit department should prioritize conducting comprehensive process audits to identify weaknesses in internal controls and recommend timely corrective actions. Clear policies should be established to prevent conflicts of interest and safeguard the independence of the internal audit function. Turkana county should put in place policies to enhance resourcing of internal audit operations to ensure the sufficiency and effectiveness of audit functions.