Quality Internal Auditing and Management Decision Making in Kenya

Stanley Munyao Katiku
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Stanley Munyao Katiku: Technical University of Mombasa (TUM)

African Journal of Commercial Studies, 2023, vol. 3, issue 2

Abstract: Internal auditing is a vital function within organizations, providing impartial and objective assessments of risk management, control processes, and governance effectiveness. Its role in offering insightful analysis and recommendations to enhance operational efficiency and reduce risks makes it a crucial determinant of management decision-making. This study investigates the impact of effective internal auditing on decision-making, recognizing the growing significance of this topic in contemporary business environments characterized by increasing complexity and challenges. The empirical studies reviewed in this research align with theoretical perspectives such as agency theory and information asymmetry theory, emphasizing the positive correlation between high-quality internal auditing and improved management decision-making. The empirical evidence strengthens the argument for robust internal audit functions as facilitators of better decision-making. While this study contributes valuable insights, further research could benefit from more diverse case studies, in-depth exploration of mechanisms, and a comprehensive discussion of potential limitations.

Keywords: Quality internal audit; Management decision making; Auditors independence; Auditors skills (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:cwk:ajocsk:2023-09

DOI: 10.59413/ajocs/v3.i2.2

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