TABLE OF CONTENTS

DECLARATION

APPROVAL

DEDICATION

ACKNOWLEDGEMENTS

.

.

iv

TABLE OF CONTENTS v

LIST OF TABLES ix

LIST OF FIGURES X

LIST OF ACRONYMS Xi

CHAPTER ONE 1

INTRODUCTION 1

1.0 Introduction 1

1.lBackground to the study 1

1.1.1 Historical perspective 1

1.1.2 Theoretical perspective 4

1.1.3 Conceptual perspective 5

1.1.4 Contextual perspective 6

1.2 Statement of the Problem 6

1.3 Research Objective 7

1.4 Specific Objectives 7

1.5 Research Questions 8

1.6 Research Hypothesis 8

1.7 Scope of the study 8

1.7.1 Content scope 8

V

1.7.2 Geographical scope .8

1.7.3 Time scope

1.8 Significance of the Study 9

1.9 Operational definition of key terms 9

CHAPTER TWO

LITERATUREREVIEW 11

2.1 Introduction 11

2.2Theoretical Review 11

2.2.1 Agency Theory 11

2.2.2 Contingency Theory 12

2.2.3 Lending Credibility Theory 13

2.2 Conceptual Review 14

2.3 Review of Related literature 15

2.3.1 Internal Audit Standards 15

2.3.2 Independence of Internal Audit 15

2.3.3 Professional Competency 16

2.3.4 Internal Control 18

2. 4 Empirical Review 19

2.5 Research Gap 22

CHAPTER THREE 23

METHODOLOGY 23

3.0 Introduction 23

3.lResearch Design 23

vi

3.2 Target Population .23

3.5 Data Collection techniques 25

3.6 Validity and reliability 26

3.6.1 Validity of instruments 26

3.6.2 Reliability of instruments 26

3.7 Data processing and analysis 26

3.8 Ethical considerations 27

3.9Anticipated Limitations of the Study 27

CHAPTER FOUR 28

DATA PRESENTATION, ANALYSIS AND INTERPRETATION 28

4.0 Introduction 28

4. lBackground information 28

4.1.1 Response rate 28

4.1.2 Response on Age of the Respondents 29

4.1.3 Gender of Respondents 30

4.1.4 Respondent level of education 31

4.1.5 Response on the period spent in current job positions by respondents 32

4.2 Segregation of Duties 33

4.4 Inventory Audits 37

CHAPTER FIVE 41

PRESENTATION OF FINDINGS, CONCLUSIONS AND RECOMMENDATION 41

5.0 Introduction 41

5,1.1 Segregation of duties 41

VI

5.1.2 Cash Reconciliation .41

.5.1.3 Inventory Audits 42

5.1.4 Cost management 42

5.2 Conclusion 42

5.3 Recommendations 43

REFERENCES

APPENDICES 48

APPENDIX I: QUESTIONAIRE 48

APPENDIX II:PROPOSED BUDGET 53

APPENDIX III: TIME FRAME 54