Effect of Strategic Factors on Performance of Internal Auditors in Institutions of Higher Learning: A Case of Daystar University, Kenya

Abstract

The purpose of this study was to examine the effect of strategic factors on effective performance of internal auditors working in institutions of higher learning with a particular focus on Daystar University in Kenya. The objectives were to identify strategic factors influencing effective performance of internal auditors, examine the effects of the strategic factors on effective performance of internal auditors, examine the nature of performance of internal auditors, and establish challenges faced by internal auditors in due to the influence of strategic factors and the measures that should be put in place to overcome them. The study adopted descriptive research design and its target population comprised of the University’s board of management members, the head of departments and their deputies, and the internal auditors. The researcher applied census technique and used both the questionnaire and interview schedules to collect data. Collected data was analyzed using SPSS software and presented in form of frequency table and charts. The study found that university management support at (67.6%), independence of internal auditors (67.6%), commitment by university management (62.2%), internal auditors’ competence (59.5%), reporting structure (48.9%), and availability of working resources (35.1%) influenced performance of internal auditors. Further, the study established that building trust among stakeholders, interference from organisation's management, and high expectations from the stakeholders than what auditors can meet were the main challenges encountered by internal auditors. Measures that need to be put in place to enhance performance of internal auditors include embracing audit independence (40.0%), conducting continuous training of audit staff (36.0%), hiring of more staff in the audit department for effective execution of auditing tasks (24.0%), and establishment of strong internal controls (20.0%) among others. The study recommended that institutions of higher learning to ensure that they employ enough internal auditors for effective execution of internal auditing functions within institutions.