PROCUREMENT AUDIT COMPLIANCE AND PERFORMANCE OF STATE CORPORATION IN NAIROBI CITY COUNTY, KENYA

Hilda Wachera Wahome, Dr. Shale Noor

Abstract


This study delved into how conformance and transparency affect the effectiveness of state corporations in Nairobi City County, Kenya. Employing a descriptive survey approach, 200 heads of finance and procurement departments were sampled for the research. The study drew upon Contingency Theory, Stakeholder Theory, and Resource-Based Theory to frame its investigation. Primary data was collected through questionnaires, with a notable response rate of 78% (156 respondents). The reliability of the survey measures was assessed using Cronbach's alpha, demonstrating satisfactory reliability. Confirmatory factor analysis was utilized to establish the validity of the data. Statistical tools including SPSS and Microsoft Excel were employed to analyze the data, utilizing both descriptive and inferential statistics. Correlation analysis unveiled robust positive correlations, indicating that enhancing compliance with audit factors leads to improved performance. Regression analysis further confirmed this relationship, revealing a substantial explanatory power (R-squared of 0.9166) of compliance factors in predicting performance variations. ANOVA tests underscored the statistical significance of the regression model. The study's findings underscore the critical role of conformance, for enhancing state corporation performance. Key recommendations include enhancing audit capabilities, establishing clear audit policies, ensuring adherence to procurement protocols, fostering collaboration, and embracing advanced audit technologies. Suggestions for future research encompass broadening the geographical scope, employing qualitative methodologies, exploring the impact of technology, conducting case studies, analyzing cost-benefit dynamics, and evaluating auditor expertise.

Key Words: Procurement Audit Compliance, Performance of State Corporation, conformance, transparency


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References


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