Abstract: Internal Control Systems play assist in the realization of financial performance goals. The main objective of this study was to determine the effect of internal control systems on financial performance of Lamu County. The specific objectives of the study were: on To establish the effect of internal audit function financial performance in Lamu County; To determine the effect of risk management on financial performance in Lamu County. The study adopted a survey research design. Given the small number of employees in the finance department in Lamu County, census was used; hence the total 97 employees participated in the study. The study collected both primary and secondary data. The researcher used structured questionnaires to collect primary data. Data was analysed using descriptive statistical methods, frequencies and percentage with the aid of Microsoft Excel. It was presented using APA tables. The study concludes that Lamu County has an effective internal audit function that plays the role of monitoring and evaluating organization activities; It has an effective and efficient internal audit function which is able to detect fraud, but it is not able to prevent and control it;, an indication of good internal control systems. The study recommends that: The internal audit function in Lamu county should be empowered to not only detect fraud, but also be able to prevent and control it; Internal audit department should play a major role in fraud detection and prevention. The audit recommendations should be taken seriously in the county.The control environment and control activities should on a regular basis be evaluated by internal audit department to provide management with the assurance on the adequacy and effectiveness of mitigation controls that management has put in place.
Keywords: Internal Audit, Monitoring Activities, Efficiency, Financial Performance.
Title: The Effect of Internal Audit Function on Financial Performance in Lamu County, Kenya
Author: Mariam Abdalla Bunu, Dr. Jane Omwenga
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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