Internal Auditors Independence on Fraud Detection among Private Firms in Kenya

Abstract: The study investigated how the independence of internal auditors affects fraud detection in private firms in Kenya. The study was conducted on selected private firms within Thika subcounty, Kenya and the results generalized for all other private firms in Kenya. Data was collected by use of questionnaires distributed and collected by the researcher himself. This research was based on a descriptive survey and the study population was Thika Sub-County which had a population of 1896 firms. The sample of 110 private organizations representing 5.8 per cent of the entire population was selected from various private organizations as a representative of the whole population using stratified sampling procedure. Internal auditors are independent when they render impartial and unbiased judgment in the conduct of their engagement. To ensure this independence, best practices suggest the internal auditors to directly report to the audit committee. The results show that only 20% of the internal auditors’ report to Audit Committee in Kenya’s private firms. The internal auditors should have access to records and personnel as necessary, and be allowed to employ appropriate probing techniques without impediment. Keywords: Internal Auditor, Independence and Fraud Detection. Title: Internal Auditors Independence on Fraud Detection among Private Firms in Kenya Author: Kuria Paul International Journal of Novel Research in Marketing Management and Economics ISSN 2394-7322 Vol. 12, Issue 1, January 2025 - April 2025 Page No: 19-23 Novelty Journals Website: www.noveltyjournals.com Published Date: 10-February-2025 DOI: https://doi.org/10.5281/zenodo.14843979 Paper Download Link (Source) https://www.noveltyjournals.com/upload/paper/Internal%20Auditors%20Independence-10022025-3.pdf