ROLE OF INTERNAL AUDITORS IN RISK MANAGEMENT

Topics: Internal audit, Auditing, Audit Pages: 21 (5578 words) Published: April 15, 2014
IMPACT OF EMPLOYEE PERCEPTION AND ATTITUDE ON THE EFFECTIVENESS OF INTERNAL AUDIT IN PUBLIC SECTOR INSTITUTIONS

A CASE STUDY OF NATIONAL SOCIAL SECURITY FUND IN KENYA
ABSTRACT……………………………………………… …………………….…………..vii

CHAPTER ONE: INTRODUCTION
1.0
2.0Introduction…………………………………………………………………………….6 2.1Internal Audit Function………………………………………………………………...6 2.2Literature Review………………………………………………………………………7 2.3Internal Audit Effectiveness……………………………………………………………8 2.4Conceptual Framework………………………………………………………………...9

CHAPTER THREE:RESEARCH METHODOLOGY
3.0Introduction………………………………… ………………………………….……10 3.1Research Design…………………………… ………………………………………..10 3.2Study Area………………………………… ……………….………………………...10 3.3Population……………………………………….……………………………………10 3.4Sample Selection and Size………………………………….………………………...10 3.5Data Collection Methods ………………………………….….………………………11 3.5.1Interview………………………….……………………….…………………………..11 3.5.2Questionnaires………………………………………….……………………………..11 3.5.3Secondary Data…..……………………………….….……………………………….13 3.6validity and Reliability.………….………………..…………………………………..13 3.7Ethical Considerations……………………….….….…………………………………13 3.8Data Analysis ………………………….. …………………………………….…..13-15 4.0 Data Presentation………………………………………………….…………………16 4.1.1Pie Charts………………………………………………………….………………...16 4.1.2Tables ……………………………………………………………………………….16 4.1.3Conclusions and Recommendations…………………………...….………..…….....16 4.2 Reference…………………………………………………………………………….17

DEFINITION OF TERMS
Assurance Services: An objective examination of evidence for the purpose of providing an independent assessment on governance, risk management, and control processes for the organization. Examples may include financial, performance, compliance, system security, and due diligence engagements.

Perception - The process by which people translate sensory impressions into a coherent and unified view of the world around them. Though necessarily based on incomplete and unverified (or unreliable) information, perception is equated with reality for most practical purposes and guided human behavior in general. It is also a way of conceiving something,  the representation of what is perceived. Attitude - can be defined as a positive or negative evaluation of people, objects, event, activities, ideas, or just about anything in an environment. It  is an expression of favor or disfavor toward a person, place, thing, or event (the attitude object) formed on a person’s past or present. It is predisposition or a tendency to respond positively or negatively towards a certain idea, object, person, or situation. Attitude influences an individual's choice of action, and responses to challenges, incentives, and rewards (together called stimuli). Four major components of attitude are (1) Affective: emotions or feelings. (2) Cognitive: belief or opinions held consciously. (3) Conative: inclination for action. (4) Evaluative: positive or negative response to stimuli.

LIST OF ACRONYMS AND ABBREVIATIONS

NSSF- National Social Security Fund
SPSS- Statistical Package for Social Scientists
IIA-Institute of Internal Auditors
SNP – Sunday Newspaper

ABSTRACT
Effectiveness of Internal Auditing of institutions and bodies formed under Acts of Parliament has been less studied and reported in the literature. The study is focused in examining the relationship between the employees’ attitude and perception and the internal Audit’s effectiveness in delivering on their roles in a rapidly evolving environment and public’s awareness of their roles. The main aim of this research study is to better understand and measure the effect of employee’s attitude and perception on the effectiveness of internal audit in public institutions, with National Social Security Fund as a case study. A survey of sampled 425 employees will be undertaken and the results of the quantitative and qualitative survey findings will be reported. The...

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Goodwin, J. (2004), "A comparison of internal audit in the private and public sectors", Managerial Auditing Journal, Vol. 19 No.5, pp.640-50.
IIA (1999a), The Institute of Internal Auditors, www.theiia.org/index.cfm?doc_id=1617
IIA (1999b), (The) Institute of Internal Auditors, available at www.theiia.org/index.cfm?doc_id=123
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