INTERNAL FACTORS INFLUENCING EXTERNAL AUDITORS INDEPENDENCE AMONG PRACTICING ACCOUNTANTS IN KENYA

Citation:
Omondi HM, Ochieng DE. "INTERNAL FACTORS INFLUENCING EXTERNAL AUDITORS INDEPENDENCE AMONG PRACTICING ACCOUNTANTS IN KENYA." African development finance journal. 2017;1(2):117-144.

Abstract:

Methodology - The study employed a cross-sectional descriptive study design and used primary
data. The collected data was analyzed with the help of the SPSS software version 22 and presented
with the help of frequency distributions, computation of mean and standard deviation. The
association between the research variables was presented using an ordinal a regression model.
Findings – The study established that internal factors influence auditor independence by 31.7%.
From the results of the research, it also revealed that there is a significant relationship between
audit tenure, audit firm size and audit independence. This was indicated with a p-value of 0.029
and 0.009. The study also established that there is no significant relationship between audit
committee and audit independence with a p-value of 0.465. The study concludes that audit tenure
and firm size affect audit independence and thereby the study recommends the need for ICPAK
to develop a policy that will guide audit tenure and audit committee.
Implications –The study findings suggest that ICPAK develops a policy that will guide the audit
tenure and audit committees, this will in essence promote an understanding of the auditors‟ independence
in the profession. The study also further suggested that similar studies should be carried
and focus on the perception of users such as institutional and private investors, audit committees
and members of regulatory bodies.
Value -The findings of the study concludes that audit tenure and firm size affect audit independence
and thereby the study recommends the need for the Institute of Certified Public Accountants
of Kenya (ICPAK) to develop a policy that will guid

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