Role of Financial Audit in Achieving Organizational Sustainability: A Case of Uchumi Supermarkets Limited
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Date
2023-05
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Daystar University, School of Business & Economics
Abstract
One of the goals of any business is the ability to maintain or support its operations continuously over time. This can be achieved through ensuring a balance is struck between meeting the interests of the stakeholders and taking care of the environment within which it operates in while achieving the economic goals. This calls for setting up of goals and means to achieve them as well as reporting the operations of the business in a prudent manner. This study was conducted to investigate the role of financial audit in achieving organizational sustainability, a case of Uchumi Supermarkets Limited. The study used Uchumi’s audited financial statements between the year 2006 and 2015 when the company was facing turbulence in its operations. The study used content analysis and regression analysis to capture the research variables for presentation. The study established that despite Uchumi having unqualified financial audit reports over the years, the company does not have sustainability reports on the level which it operates towards, despite adhering to various sustainability levels. Financial audit however acts as a pillar of faith in ensuring what the organization’s management reports in its financial statements present the true and fair position of the organization. Financial audit therefore have a direct relationship with the sustainability of an organization as much as the sustainability level an organization operates in remains a management decision. In line with these results, the study has recommended the continuous use of the Z score model to measure the likelihood of organizations being in financial distress as well as setting up of sustainability levels which a company can always work towards.
Description
MASTER OF BUSINESS ADMINISTRATION
In Finance and Strategic Management
Keywords
Financial Audit, Organizational Sustainability, Uchumi Supermarkets Limited
Citation
Andere, K. A.,(2023).Role of Financial Audit in Achieving Organizational Sustainability: A Case of Uchumi Supermarkets Limited: Daystar University, School of Business & Economics