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Article Title:
An Evaluation of Internal Audit Committee Functions in Financial Reporting In Local Authorities in Kenya: A Case Municipal Council of Eldoret
by Ambrose Kiptoo Chelimo, Bilhah Muthoni Kariuki

Abstract:
Internal audit committee functions in local authorities in Kenya are a topical issue following fraudulent financial reporting and accounting scandals as reported by Kenya national audit office reports. The purpose of this study was to investigate internal audit committee functions in financial reporting in the Municipal council of Eldoret. The study was guided by the following objectives: to find out the effect of internal audit committee functions in financial reporting in the Municipal council of Eldoret. Descriptive statistics was used to measure central tendencies and dispersion to describe the sample statistics. Inferential and correlation analysis was used to draw conclusions concerning the relationships and differences found in the research results. The target population for the study was 339 mainly drawn from three departments of the council ? Town clerks, treasury, internal audit, and civic members of the audit committee. The Sample size of 211 respondents comprised of heads of department, sectional heads, supervisory staff, operation staff, and civic members of the audit committee. The study used structured questionnaires to collect data. Analysed data was validated, coded and presented in tables. It was then programmed into Statistical Package for Social Science (SPSS) version 17.0. The finding of the study was that internal audit committee functions have an effect in financial reporting in the Municipal council of Eldoret. The study recommends that the independence, composition and competency of the internal audit committee require the intervention of the Ministry of local Government for it to be effective; that audit committees members should have the knowledge and financial expertise to serve efficiently in their role; that local authorities in Kenya should ensure that resolutions of Audit committees are acted upon and agreed actions implemented within the stipulated timelines; and that the ministry should ensure that required reforms are safeguarded from external interference. The study is significant as it provides important information on possible remedial actions and proactive approaches which would ensure that internal committee functions are carried out in accordance with acceptable standards, goals, policies and procedures.

Keywords: internal audit committee functions, financial reporting, local authorities in Kenya

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