Abstract: The study aimed at establishing the effect audit committee on financial performance of deposit taking Sacco’s in Nyandarua County, Kenya. The study was anchored on stewardship theory. The study applied descriptive survey research design. Target population for the study was composed of deposit taking SACCOs in Nyandarua County which are under SASRA regulation. There are 61 deposit taking SACCOs operating in four sub-counties of Nyandarua County. Given that the sample population is not too big; the study adopted a census of all the SACCOs. A questionnaire constructed in a five point likert scale was used as the main data collection instrument. The instrument was pilot tested to check on the suitability and the clarity of questions on the instrument. Data collected was analyzed using Statistical Package for Social Sciences (SPSS). Findings were presented in form of descriptive statistics and inferential statistics and presented in tables accompanied by relevant discussion. The study established that audit committee had a positive significant relationship with the financial performance of deposit taking SACCOs in Nyandarua County. Therefore the study concluded that audit committee has a significant relationship with financial performance. This means that audit committee dynamics directly influences the direction of financial performance of the deposit taking SACCOs in Nyandarua County.. The study recommended that SACCOs should ensure they install an audit committee to help in internal auditing of the financial operations of the SACCOs. Further, audit committee ensures efficient allocation of resources in SACCOs and thus a prerequisite in ensuring effectiveness in financial performance.
Keywords: Audit Committee, Corporate Governance, Nyandarua County, SACCOs.
Title: EFFECT OF THE AUDIT COMMITTEE ON FINANCIAL PERFORMANCE OF DEPOSIT TAKING SACCO’S IN NYANDARUA COUNTY, KENYA
Author: Faith Mumbi Kariuki, Dr. Tabitha Nasieku
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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