PHYLLIS WAMBUGI

RESEARCH PROJECT

ADM 22362.

DIPLOMA PROJECT MANAGEMENT

 CHAPTER 1.

INTRODUCTION OF THE STUDY

Introduction

The introductory chapter covers the foundation of the study with details of the background

information, statements of the problem, objectives of the study, research questions and

significance of the study, limitations and conceptual framework.

BACKGROUND OF THE STUDY.

Auditing is the process of assessment and ascertainment of financial goals and processes in

an organization to determine whether they are in compliance with the stated principals in

addition to them being in conformity with organizational and more importantly regulatory

requirements.

Auditing plays a very big role in management of resources in schools. Many institutions have

experienced mishandling of resources among other resources due to lack of proper audit

processes. Auditing is divided into several categories. Example financial audits that deals

with records of finances and money or concerned with the way finances are being handled,

operational audits which deals with generally the way an organization or institution is

carrying out their procedures, and compliance audits which assess whether the employees are

adhering to the rules and regulations of a certain organization or institution as required.

Auditing is as old as accounting and therefore there are signs of its existence in all ancient

cultures such as Mesopotamia, Greece, Egypt, Rome, UK, and India. In olden days the key

purpose of auditing was to gain information about the financial systems and records of the

business in recent years, auditing has begun to include non-financial subjects’ areas such as

security, safety information systems, performance and environmental concerns.

Auditing origin can be traced back to the 18th century when the practice of large scale

production developed as a result of the industrial revolution. The last decade of 15th century

was a crucial period during which a great impetus was given to trade and commerce by

reinaissurance in Italy and the principal of double entry book evolved and published in 1494

at Venice in Italy by Luca paciolo.

The audit of business could not be standard until the 19th century. A royal charter

incorporated the institute of chartered accountants in England and Wales on May 11 1880. In

January 1923 the British association of accountants and auditors got established and a person

could be fully competent to work as a professional auditor after clearing this exam.

Organizational profile of joy town secondary school.

Auditing in joy town secondary school begun in auditing major functions in education,

budgeting, accounting and the function of joy town secondary school is to prepare student

with physical challenges in environment that will promote the education of knowledge and

development and skills Lucy mugwe says we will not wait for the school to submit the

reports we will go for them in the respective institutions.

Joy town was founded in 2001 as a faith based nonprofit, non-governmental organization by

major Richard looke and pastor Bobby willmot. Through auditing this schools has been able

to manage its resources which has facilitated to a good flow of the organizations program.
 Organizational structure of joytown secondary school

BOARD OF DIRECTORS

BOARD CHAIRMAN

Manager Procurement
President/project Administrative
manager

Operational staff
Project officers Administrative staff
Programme coordinator
Statement of the problem.

Auditing in an organization is very critical issue which should be handled with a lot of care

and if any organization does not implement the same becomes a stumbling block. Joytown

secondary school has been facing auditing problems such as lack of support from the

management, lack of prior preparations, and lack of qualified personnel with skills to conduct

the process. This shortcomings have led to poor management which makes it even impossible

to respond to the dynamic technological advancement.

In this school also auditors are facing challenges which is making them not to effectively

perform their duty eg finance problems and lack of support from the schools management

hence the resources of this school have been mishandled there has been theft and the school

has stagnated for a while without any improvement at all.

Objectives of the study.

The following objectives has guided the study.

General objectives of the study

The general objective of the study is to investigate the effect of audit on management of

resources.

Specific objectives

1. To find out how technological advancement of auditing affects management of resources

in public schools.

2. To investigate how inadequate skills hinders auditing in management of resources.

3. To find out how finance affect auditing in management of resources.

Research questions.

The following are research questions that guided the study

1. How does technological advancements affect auditing in management of resources?

2. How does inadequate skills affect auditing in management of resources?

3. How does finance affect auditing in management of resources?

Significance of the study

The study benefited the following.

Joy town secondary school.

The study will benefit the management of joy town secondary school as they will know

effects of auditing process and solutions to them.

Other public schools

The study will be of great benefit to the other schools as it brought forth the effects of

auditing process and their solutions.

Future researches.

This research helped researchers in future research in further study, where people doing

related research and also provides gaps to be filled.

Limitations of the study

Confidentiality

An inherent limitation of this study is that because of confidentiality some respondent feared

and viewed the study with suspicion and probably become apprehensive that the information

could be used to victimize them and become uncooperative.

Unwillingness

There was an unwillingness on the side of some respondent due to busy schedules the

researcher therefore booked appointment at late hours to collect information after office and

workers that is in the evening.

Lack of cooperation.

The researcher encountered uncooperative respondent who will be reluctant to answer the

questionnaires. This would lead to biasness to overcome the challenge the researcher made an

effort of explaining to the respondent about the study and the importance of their

participation.

Scope of the study.

The study focused on the investigating the effect of auditing in an institution. The study will

be conducted at Joytown Secondary School situated in Kiambu County Thika sub county

Thika town, the target population was 50 employees of JSS the study was conducted on July

2020 and August 2020.

 CHAPTER TWO

LITERATURE REVIEW.

Introduction

This chapter presents literature review, critical review and summary of gaps to be filled and

conceptual framework.

THEORITICAL REVIEW.

Joseph (2005) it has been documented that technology is a collection of tools including

machinery, modification, arrangements and procedures used by humans. Engineering is the

discipline that seeks to study and design new technologies.

Technologies significantly affect humans as well as other species ability to control and adapt

to their to their natural environment information technology a set of tools, process and

methodologies for example coding and programming data conversion, storage and retrieval

systems analysis and design system control and associated equipment employed to collect

process and present information other than technology being a major principal driver of

globalization, it has been a major factor to the determination of The decision to our sourcing

or not

According to scarler(2007) we can anticipate obsolescence by monitoring the state of our

technology and tracking changes in the industry, one of the first things to think about in your

planning is your valuable business asset and most companies store it in digital form making

sure that information is not lost or endangered due to technological obsolescence require

some diligence, because hardware and software evolve at different speeds, you could find

that your method for storing information eventually becomes unreadable or difficult to
access, be sure to track advances software and digital storage in order to anticipate when you

access are not stored file format that could soon become absolute .

According to Dave, Patricia and melody (2005)country policies and technological

development of the past few years have triggered them increased cross border trade,

investment and the migration of people and goods from one economic market to another,

since 1970 for example the volume of World Trade has increased by 20 times and from just

1997 to 1999 flows of foreign investment nearly doubled from 5468 billion to 5027 billion

( me Kinsey global institute report) many authors particularly Thomas friendman said that the

globalization is becoming more far, cheaper and deeper, one aspect of technology that has

contributed to global sourcing is the communication of the information technology

capabilities.

In trading different parties must be able to communicate clearly and at the right time in order

to fulfil the porters spa of the right place that favors the seller and buyers,right place of

delivery, right promotional strategies, the buyer must know how the goods time taken for the

goods to each other him and shaped .for this to be effective, open dialogue and

communication is imperative between the supplier and buyers.

Hisham faruok (199) commented that the profession services firms continue to respond to

increased use of technology by their clients, this evolution started as clients moved to using

accounting software and ERP solutions and now another phase begins where the professional

is beginning to connect to those clients systems we are now not only analyzing data because

clients have greater connectivity and accessibility of data but though machine learning the

quality of the data we are able to extract better enhancing both the efficiency and religious of

the audit process.

From CFO perspective, Marcus freeman (1989) commented that the ability of technology to

allow the testing of entire population shifts the perspective on the value of audit, data
analytics allows the auditors to provide both a helicopter view of the financial and a detailed

and complete view of the account records and as a result more insight, Marcus however

cautioned that in a matter of time all the global audits firms will be able to offer similar

technological solutions and since the technology itself is not proprietary there appears to be

limited barriers to entry and so nothing stopping smaller technology sarry prayers entering

this market to offer these some technological solutions.

INADEQUATE SKILLS

Wong (2001) found that the use of computers assisted with auditors techniques instead of

traditional data mining contributes to the success of auditing task, brown 2006 found auditors

independence does not by itself materially degrade the quality of financial disclosure,

auditors must be selected objectively and not based in the interrelationships between board of

directors and the auditor, prior researchers documented a positive association between audit

quality and some factors such as internal control.

The organization reputation for consistent high quality work ensures that decision makers

will move readily and more assuredly accept findings and implement recommendations and

reputations are Built over time by producing consistent high quality work, A hard earned

reputation is in the line with each product to maintain and continue to build excellence

requires total commitment on the part of every member of the team and the organization

challenges to findings and recommendations can be expected.

AICPA (1998)

The skill is critical given that there are significant difference in the incidence magnitude

income effects, cause and members of detection of financial statements errors across a broad

base of industries, the issue of industry specialization has become increasingly relevant to the

auditing profession as firms organize their practices along industry lines rather than
traditional service line AICPA (1998) furthermore, research has shown that specialized

knowledge in an industry has a direct effect on an auditors ability to assess audit risk, detect

errors and misstatements and improve earning, quality.

Ellifsen (2006) provides an overview of how the agency relationship is creating the demand

for auditing information asymmetrical creates a need for an independent intermediary the

auditor to verify and provide by the management without the verification of the auditor

managers would have an incentive to misrepresent the performance of the company and their

management skills since they could gain private benefits by such actions.

Krishnan(2005) the relationship between audit committee quality and internal control

weaknesses is a subject to be investigated. The audit committee not only plays an important

monitoring role to assure the quality of financial reporting and corporate accountability but

also serves as an important governance mechanism because the potential litigation risk and

reputation impairment faced by audit committee members ensures that these audit committee

members discharge their responsibility effectively we thus expect firms with high quality

audit committees are less likely to have internal control weaknesses than firms with low

quality audit committees.

Simunic and stein (1987) suggested that although auditor moral hazards has received sortie

attention in the academic literature it is perceived to be particularly acute in the government

environment. In this environment the chances of clients financial failure and consequences ex

post revelations of the lower than implied audit quality are minimal also suggested that

appropriate procurement practices can independently contribute to selection of competent

auditor in the market in which it is difficult to directly access whether an auditor possess the

specialized knowledge necessarily to provide high quality government audit.

FINANCE
Gul,lynn,and tsui (2002) develop the study of Warfield et all by looking at how quality

affects the positive relationships between the in formativeness of earnings and management

ownership and the negative association between discretionary accruals and management

ownership, the results if guel et al 2002 support the conclusion that agency problems have an

effect on the demand for auditing. The audit fee literature have extended the findings that the

management ownership weakens the positive relationships between discretionary accruals

and audit fees however in companies the negative effects of management ownership is found

to be weaker. The audit fee literature proposals that were there is relationship between agency

problems and audit fees.

Ashbough skalte (2007) as expected weaknesses in internal controls are also related to

significantly decrease financial statements quality weaknesses in the internal statements

quality of financial statements by either allowing more international earnings management or

unintentional errors. The evidence suggest that the weaknesses is likely to lead to intentional

errors,

As the evidence of the effects of internal control weaknesses on financial reporting quality

seems convincing, it is of interest to look closer at the market and capital effects of the

marker and capital effects of those disclosures

Banish (2008) report that the auditor quality and client size attenuates the reaching depends

on the characteristics of the weaknesses. The evidence suggests first that to richness of the

information environment may affect the reaction and secondary that he richness of the

information environment may affect the relation and secondary that specific types of

weaknesses are more difficult to anticipate even in a rich richer environment.

Melumad and ziv(1997) proposed in their theoretical model of marketers reaction to

avoidable qualified audit report that the reaction to avoidable and unavoidable qualified

audits report is different. An avoidable audit report which the management could have
avoided by making a change in reporting, could result in either a positive or negative

reaction. The reaction if financial markets to audit reports announcement has been

extensively studied in the accounting literature, the fundamental question addressed in these

empirical studies is whether the audit report investors pricing decisions. A list of more

relevant studies for this dissertation is presented. The event date problem becomes evident

when the event date selection the literature is reviewed.

Defond (1992) find that changes in agency costs are associated with changes in audit quality,

he explains that companies have different demands for audit quality based on the alignment

of the interest between the management of the owners. The divergence of the interest consists

of the conflict of interest and the informational asymmetry needed. Auditing is understood to

make the management more credible investors in the absence of or in addition to other means

control agency conflicts, however he has not talked about finance and how it affects auditing

process.

Beaver (1989) suggests that one means to align the interest of management and shareholders

is to use profit, sharing agreements or stock options as incentives contracts. The primary

means for continuous performance reporting is a set of a company's financial statements. He

also said that the accounting ratios can be used to estimate the profitability of bankruptcy

However he did not speak about how finance may affect auditing hence from his views I

conclude that if an account is declared bankrupt it makes it difficult to conduct the process if

auditing.

Nlikkiken et all (2004) report that management ownership has a negative effects and free

cash flow a positive effect amongst audit fees and thus the agency costs can be used to some

extent in the explaining audit fees hence support the theory of the agency costs of the

company have an effort on the demand and supply of audit services.

 CONCEPTUAL FRAMEWORK

INDEPENDENT VARIABLES DEPENDENT

VARIABLES

TECHNOLOGICAL ADVANCEMENT

INADEQUATE SKILLS MANAGEMENT OF

RESOURCES

FINANCES
Technological advancement

This is whereby technology improves and affect the process of auditing. This may be through

ways and tools if auditing, skills, internet etc. Technology is an important aspect which assist

in efficiency of auditing if the technology is improved.

Inadequate skills

This is whereby there is limited skills and knowledge amongst the auditors which leads to

poor auditing procedures and result .inadequate skills may make auditing not to be effective

since it will not achieve the desired objectives.

Finance.

This is a very important factor in the whole process of auditing which facilitates the whole

process. Without finances nothing can be accomplished in any way, through all the process of

paying auditors, doing research money is a key factor.

CRITICAL REVIEW

Scarlet (2007) we can anticipated absolencence by monitoring the state of our technology and

tracking changes in the industry, one of the first things to think about in your planning is your

most valuable business asset and most companies Store it in digital from making sure that

information is not lost or endangered due to technological absolencence. He did not speak on

how it affects auditing but proper monitoring of the technology will lead to good auditing

process.
Krishnon( 2005)the relation between audit committee quality and internal control weaknesses

is a subject to be investigated. The audit committees plays an important monitoring role to

assure the quality of financial reporting however the committee requires qualified skills to

carry out the tasks allocated.

Melumad and ziv(1997)proposed in their theoretical model of marketers reaction to avoidable

qualified audit report that the reaction to avoidable and unavoidable qualified audits report is

different however auditing requires finances though he didn't talk about that.. Different stages

requires a lot of money.

Issues of auditing in management of resources are quite critical in an organization efforts

should be put in place to ensure consistency within the organization objectives in

implementing the strategies, board members and principals are key player in formulating and

administration of auditing procedures. This should be perceived by all as fair and adequate to

the person implementing the way of auditing in management of resources.

SUMMARY OF GAPS TO BE FILLED

Auditing is a protracted process and there are many obstacles along the way and therefore

needs to be effectively managed. This chapter has presented literature or selected factors that

influence product development. These factors are technological advancements, inadequate

skills and finances. The overriding objective auditing is to deliver efficiency and value "for

money" in public schools, The literature review in the above section shows that this

objectives can be achieved effectively if such factors are paid attention in auditing process.
CHAPTER 3

RESEARCH DESIGNS AND METHODOLOGY

Introduction

The chapter focuses in the design and methodology that will be used in the study it includes

the research design and methodology. It also focused on the target population, sampling

design, data collection instruments and procedures that will be used to data analysis

RESEARCH DESIGNS

The researcher adopted descriptive research design with an aim of minimizing business and

maximizing reliability. This is because it has taken to be one of the best methods of analysis

because the data will be collected in both quantitative and qualitative to ensure that no

relevant information will be omitted.

According to patton (2002) research design is an attempt to collect data From members of a

population in order to determine the correct systematic ways of identifying the variables,

collecting data analyzing the information and reporting the results

TARGET POPULATION

According to mugenda mugenda (2003) target population is to increase set of individuals

cases or objects with same common characteristics to which the researchers will want to

generalize the results of the study, target population comprised of 100 employees who will be
the respondent in the study the respondent choose from top level managers, middle level

managers and support staff

Target population is represented as follows in tables 3.1

Drawing

DEPARTMENT TARGET POPULATION PERCENTAGE

Board of directors 20 29%

Staff 40 57%

Non-staff 10 14%

Total 70 100%

Sampling procedure and sample size.

The study employed stratified random sampling design, stratified random sampling is a

sampling design or techniques in which the population is first divided into distinct sub

populations or strata and random samples are taken separately from each stratum. The

population will be divided into groups such that the element with each group has

homogeneous characteristics .those techniques are considered to be the most suitable means

of achieving accurate and relevant data required by the researcher according to mugenda and

mugenda (2003) a sample size can be obtained by getting percentage 50 percent of the target

population.
Sample test

Drawing

DEPARTMENT TARGET SAMPLE SIZE PERCENTAGE%

POPULATION
Board of directors 20 10 29

Teaching staff 40 20 57

Non-teaching staff 10 5 14

Total 70 35 100

Source author ( 2020)

DATA COLLECTION INSTRUMENT

Semi structured questionnaires which will be open and closed ended questions will be used In

data collection, the researchers obtained this data from management and subordinate. The

researchers will consider the use of questionnaires which is effective in the research.

The researcher used this method because it is cheap even where a sample size is large. It free

from the bias of the interviews, respondent will have adequate time to give well thought

answers and thus results can be made more dependable and reliable questionnaires will

therefore be redistributed to the various departments to fill in and then returned back after 2

weeks to collect those questionnaires issued to the respondent in order to analyze them.

Validity and reliability of the instruments validity is defined as the accuracy of the meaning

fullness of interfered which are based on the research results ( mugenda and mugenda (2003)

validity of an instrument is improved by through expert judgement.

According to mugenda and mugenda (2003) reliability is a mature of the degree to which

research instruments yields consistent results or data after repeated trials. The reliability of

research was achieved by pre-testing the questionnaire in a pilot study in an area not covered

by the score of research. The research validity and reliability exist in the data collection

instruments which must yield info that is relevant to the research hypothesis but also correct

pilot resting will be done at the Joytown secondary school Thika where ten questionnaires

will be issued to the respondent.

Data analysis, methods and procedures

According to Patton (2002) data analysis is the process of systematically applying statistical

and use logical techniques to describe and illustrate condense and recap and evaluate data,

Data analysis consisted both qualitative and quantitative techniques Data was presented using

tables and pie charts then analyzed using Microsoft excel

CHAPTER FOUR

RESEARCH FINDINGS AND DISCUSSION

INTRODUCTION

As stated the key objectives of this study are to investigate the effects of audit management of

resource a case study of joy town secondary school which is a public institution. This chapter

provides an overviewed and comparative result of auditing in all public school.

In this chapter we will dissolve the response rate of the effects of auditing. The demographic

characteristics of the study valuables, correlation and regression analysis.

During the study it was dissolved that on 40% of the total sample size had relevant project

experience. The appropriate sample would be 49%.

N = 161/3 = 48.3

The response rate was 85% which makes the results of this research project credible. There

were 42 valid questionnaires returned since the questionnaire were project bases a sample of

42 projects is adequate to investigate research question of the topic.

Basic information

Table 1 experience of the respondent.

Experience No Percentage
Less than 18 years 2 48
25-30 years 2 48
31-50 years 23 54.8
Over 50 years 15 35.7
Total 42 100

Education level of responses

Table 2

Level of education No Percentage

Study variable apprentice 1 2.4
Upper secondary 4 9.5
Advance diploma (A2) 1 2.4
University (A0) 22 52.14
University post graduate 14 33.3
Total 42 10

CORRELATION AND REGRESSION ANALYSIS

Level of importance of auditing

Table 3: auditing at project auditing phases

No of respondent Percentage
Yes 39 93
No 3 7
total 42 100

The first objective was to identify the level of importance of auditing process. Total number

of 42 projects surveyed. There had been auditing process during project implementation

phase in 92.5% of the surveyed project in 60% of the projects the auditing process was

informal while formal in 40% of the projects.

Table 4 Level of importance attached to auditing

Evaluation Clarity of Consultants Availability Estimated Budget

of the level space use competence of suitable project availablity
of requirements land time
importance
Very 31% 26% 24% 19% 29%
important
Fairly 33% 62% 55% 52% 36%
important
Not so 29% 10% 19% 24% 31%
important
Unimportant 7% 2% 2% 5% 5%
Total 42 42 42 42 42
number
Total 100% 100% 100% 100% 100%
percentage
The clarity of space use as risk was considered very important by 31%; fairly

important by 33 %; not so important by 29 % and unimportant by 7%. 62% of the

The clarity of space use as risk was considered very important by 31%; fairly

important by 33 %; not so important by 29 % and unimportant by 7%. 62% of the

respondents judged the qualification of consultants as fairly important and 26% as very

important and only 2% thought it as unimportant.

The availability of suitable land and site was judged to be fairly important by 55% of

the respondents; very important by 24%; and not so important by 19%. The estimated or

expected completion time risk was judged as fairly important by 52% of the respondents,

very important by 24%; and not so important by 24%. The availability of sufficient budget

was regarded as not so important by 36% of the respondent and with 31% judging it as fairly

Important. Only 31% of the respondents thought the availability of budget as being very

Important.

Table 5 project phase that the respondents participated

Participation Number Percentage
Planning 6 14%
Design 15 36%
Procurement 1 2%
Construction works 20 48%
Total 42 100%

48% of the respondents had participated in the construction works phase; 36% in

design, 14% in planning and only 2% in the procurement or bid process. In 87.5% of the

projects, identified risks occurred.

The key risks identified through the interviews were unfavourable ground conditions
changed contracts, scope creep, variations, delays in approval, client failure to accept
project, prolonged defects liability period and incompetent consultants. In most projects the
risk identification process was informal. Unfavourable ground conditions risks occurred
though often anticipated and had some impact on cost and schedule according to the
interview

respondents. There were instances where specifications were enhanced during

construction works and earlier omitted works were added back.
Table 6. Impact on the project cost for mismanagement of resources.
Impact Number Percentage
Fairy large (20-40% 12 28.6
variation)
Fairly small (10-20% 14 33.3
variation)
Very large (over 40% 6 14.3
variation)
Very small (1-10% 4 9.5
variation
Risk did not occur 6 14.3

Grand total 42 100

There were many and varied reasons cited as reasons why these risks occurred. Most of these

risks resulted in additional costs and delayed project completion time. Unforeseen risks

occurred in 85.7% of the projects. These risks resulted in 10-20% project cost in 38.9% of the

projects, a 20-40% variation in 33.3% of the projects and an over 40% variation in 16.7% of

the projects. 39% of the respondents said that all team members had the best chance to

manage cost variations while 82.5% thought that the client had the best chance to manage

delayed payments risks. The consultants had the best chance to manage unsuitable design

solution risks according to 53.7%. The client hand the best chance of managing design

changes according to 48% of the respondents while 36.6% of the respondents thought that the

consultants had the best chance of managing design change. 75% of the respondents said that

the consultants had the best chance to manage delays in design.

The contractor had the best chance to manage construction delays according to 73.8%

of the respondents while the client had the best chance in managing the risk of unsuitable site
Conditions according to 58.5% of the respondents. The contractor had the best chance in

managing the risk of lack of materials according to 56.1% of the respondents.

4.4 Site selection and validation process
Table 7 Time of site selection

Selection time Number Percentage

Before planning 10 23.8
Planning 21 50
Design 8 19
Construction 3 7.1
works
Grand total 42 100

The project site was selected during the planning phase in 50% of the projects; before

planning in 23.8% and during design in 19% of the projects surveyed. The interviews

indicated that in most projects the site was selected by client but validated by consultants

later during design stage. Most projects had increased costs in substructure works. Some sites

were cited as being very difficult with high retaining walls.

Table 8 involments in site selection

Team member Number Percentage cases

Architect/engineer 4 9.5
Client 41 97.6
Project manager 8 19
Contractor 4 9.5

The client was involved in 97.6% of the projects in site selection, the consultants in 9.5%, the

project manager in 19% and the contractor 9.5% of the projects. 43.9 % of the respondents

were not sure whether there was alternative land available for the surveyed project while 36.6

and 19.5 were aware and not aware respectively of availability alternative land.54.8% of the

respondents evaluated the suitability of the selected project site as fairly good; 26.2% as very

good and 11.9% as either very bad or fairly bad. The slope of the site was evaluated as fairly

good by 57.1% of the respondents while 19% evaluated it as either very good or fairly bad

7.1% of the respondents considered the site slope as very bad.

Table9 site evaluation

Evaluation Suitability Slope Site works Compliance Availability
contribution to of roads
to cost environmental
variation regulation
Very good 26.2 16.7 11.9 11.9 23.8
Fairly good 54.8 57.1 45.2 61.7 50.0
Fairly bad 9.5 19.0 26.2 19.0 21.4
Very bad 9.5 7.1 16.7 7.1 4.8
Total 42 42 42 42 4.2
100.0 100.0 100.0 100.0 100.0

The site works contribution to cost variation was evaluated as fairly good by 45.2% of

the respondents; fairly bad by 26.2%; very bad by 16.7% and very good by 11.9% of the

respondents. The compliance with environmental regulations and accessibility was evaluated

as fairly good 61.9% and 50% of the respondents.

Table 10 site evaluation

Evaluatio Availabilit Ease of Constructio Availabilit Utilit Attractiveness

n y of constructio n time y of y cost of the
services n landfill location
Very good 19.0 4.8 4.8 4.8 9.5 31.0
fairly 52.4 61.9 73.8 40.5 35.7 61.9
good
Fairly bad 23.8 21.4 16.7 50.0 50.0 4.8
Very bad 4.8 11.9 4.8 4.8 4.8 2.4
Total 42 42 42 42 42 42
100 100 100 100 100 100

Availability of services was evaluated as fairly good and very good by 76.2% of the

respondents. The ease of construction in relation to excavation and foundation works was

evaluated as good in 66% of the projects and very bad in 11.9% of the projects. The

availability of landfill for excavated material was bad in 55% of the projects. The

contribution of utilities to construction costs was evaluated as bad in 57% of the projects. The

attractiveness of the site was evaluated as good in over 90% of the projects. The cost of land

acquisition was good in 87.5% of the projects surveyed. The execution costs of site works in

comparison with estimates in the bid bills of quantities between 1-10% in 46.3% of the
projects, 10-20% in 24.4% of the projects; over 20% more than the estimate in 19.5% of the

projects and less than the estimates in 9.8% of the projects

There was a strong negative correlation between the time of selection and the accessibility of

the site. The latter the site was selected the more were the chances of poor site accessibility.

There was strong positive correlation between land suitability and the slope, contribution to

variations of costs of substructure works and foundation, compliance with environmental

regulation and accessibility. When the land was suitable, the other parameters were positive

and favourable. These findings indicate that the decision making about the location of a

building is low structured and multi criteria problem as discussed by the other researchers

( Jajac et al 2013)

4.6 Needs identification and validation process

Table 11 Time of needs identification

Time Project Percentage

Planning 26 61.9
Design 12 28.6
Construction works 4 9.5
Total 42 100

In the projects surveyed, needs identification was done during planning in 62% of the

projects, during design in 29% and during construction works in 9.5% of the projects.
Table 12 Reason for the project

Number Percentage
Customer request 14 33.3
Social need 8 19.0
Political needs 1 2.4
Market demand 9 21.4
Business 9 21.4
Political 1 2.4
Total 42 100.0

The projects were conceived for various reasons with customer request being the reason in
 33% of the projects, business need in 21% of the projects; market demand in 21% of the

projects and for social need in 19%.

The end users or beneficiaries were not involved in needs validation in 65.1% of the projects.

there is a strong negative correlation between end users and beneficiaries was observed to
greatly

reduces order the chances of changes orders from changed assumptions.

Table 13 Evaluation of criteria used in project needs evaluation

Criteria Organization Political Project Available Expected
strategy strategy impact budget income
Very 73.8 73.8 42.9 33.3 21.4
important
Important 4.8 7.1 31.0 19.0 14.3
Unimportant 4.8 4.8 7.1 14.3 4.8
Not applied 14.3 14.3 14.3 11.9 52.2
Fairly 2.4 0.0 4.8 21.4 7.1
important
Total 42 42 42 42 42
100.0 100.0 100.0 100.0 100.0

The compliance with organization strategy and external political strategy was ranked as the

very important criteria in needs validation in 73.8% of the projects. The anticipated impact

of the project and compliance with available budget were important criteria in 75% and 54%

of the projects surveyed respectively. The expected income and return on investment criteria

was not used in 52% of the projects surveyed. Only 35% of the respondents thought the

return on investment was an important criteria for needs validation process. There were

change orders during construction works phase in 80.5% of the projects due to changes in

assumption of needs. The impact of these change orders to the project was fairly large.

The analysis of the structured interviews indicated that client’s management at the high

decision-making levels did the needs identification process. There were change orders caused

by inclusion of items that had been omitted at design stage to keep project within available

budget then. But these omitted items such structured data cabling, standby diesel generators,

and internal wall partitions were necessary for the proper function of the buildings and had to
be returned. It was observed that there was a strong negative correlation between the reason

for the project and its compliance with an organizations strategy. This meant that when the

reason for the project moved from market and business need to social and political needs, the

criteria of compliance with organization strategy was not used. Similarly, there was a strong

negative correlation between the time of needs identification and compliance with

organization strategy. This meant that the later the needs identification process happened, the

higher the chance that they would not comply with an organization’s internal strategy.

These findings are similar to the findings by Fageha(2014) that effective needs identification

leads to clear project scope definition which can alleviate the risks of inadequate project

planning and inadequate design that can lead to expensive changes during construction,

delays, rework, cost overruns, schedule overruns, and project failure (Fageha & Aibinu,

2014).

4.7 Preliminary budget and schedule development

Table 14 Time of budget and schedule development

Phase % budget development % schedule devepment

Planning 64.3 71.4
Design 35.7 19.0
Construction works 0.0 0.0
Total 100.0 90.5

The project preliminary budget was estimated during the planning phase in 54% of the

projects; before planning in 25% and during design in 15% of the projects surveyed. The

client was involved in 98% of the projects in preliminary budget and schedule development,

the consultants in 23% of the projects, the project manager in 13% and the contractor in

4.1% of the projects. The interviews indicated that preliminary budget was developed by the

client alone but was later adjusted to consultants confidential estimate in most projects.
Table 15.Evaluation of preliminary budget against bid price.

Projects %
Over 40% less than 73.8
actual
20-40-2% less than 7.1
actual
10-20% less than actual 4.8
As actual 14.3
More than actual 0.0
Total 100.0

In 64% of the projects, the preliminary budget was over 50% lower than the lowest returned

bid price and the consultant’s estimate during design. 45% of the projects were closed after

design stage when it became clear that they were not feasible. The durations for the

consultancy the client’s procurement team alone in estimated services and construction works

over 70% of the projects. The main criteria in time estimate in 64% of the projects were

compliance to external budget schedules such as the government financial year. Consultancy

services were rushed to meet the financial year closure deadlines and construction works time

schedules were adjusted to fit within financial plans in most of the projects.

An analysis of the interview responses indicated that for most projects, the most responsive

bids were much higher than the preliminary budget but were within the consultants’

confidential estimate. In instances where the bids were far above the budget, some projects

were abandoned, several were retendered and in most there was increased budget allowance

to accommodate the extra costs. Many projects were delayed as the client sourced for more

financial resources. The findings validate the view of risk as a cyclical process where a risk

response may produce new events that may adversely affect the project (Ceric, 2003).
CHAPTER 5: SUMMARY, CONCLUSION AND RECOMMENDATION

INTRODUCTION

Finally we present the conclusion in this section of the paper. This section would provide a

summary overleaf the research in entirety encompassing the theoretical implications,

practical’s contribution, limitation and critical reflection, future research considerations and

recommendations.

Summary of major findings

From the research done. It is established that the following factors delay. In providing

document for audit review inadequate approved budgetary allocation by the national

government, low quality financial reporting system and report prepared by public sectors

entitles constants might turnover in public. Sector entity decay in responding to audit queries

and might letters and decay in the audits entitle commenting on the draft. Audit reports

inadequate staff training, poor performance of auditors as a result of lack of knowledge.

Though the external factor are in use by the audited entices or other. External parties such as

the national government, international auditing bodies etc. while internal factors arise from

within the GAC. It is the sole responsibility of the to ensure that these factors arise from

within so as to not affect audit powers.

CONCLUSION

This research provides an understanding of the effects of delay in connection to audit

conducted within the public sector specifically JSS and effect on the quality of the audit. to

grasp an insight as to how the JSS as an institution is responsive to both internal and

external resources the institution theory was applicable and based upon this a theoretical

model was developed . The model explains that audit quality and the decision making ability
of the stakeholders i.e. world bank. IMF ADF and SIDA who are direct users of the audit

reports

I’m the option of one of the auditors the fundamentals effect of management of resources in

public schools can be positive or negative factors such as technological advancement ,

inadequate skills and finances can affect auditing processes in entitles way.

While according to audit 2 one of the major challenges the GAC encounters with public

sector entitles is the submission of documentation in a timely manner for their review.

Recommendation

The objectives of this part of the study is to investigate the effects of audit on management of

resources and how various factors i.e. Technological advancement, inadequate skills and

finances affect auditing processes.

Audit effectiveness can be increased and audit decay decreased or avoided through paying

keen consideration to preventing forces.

Government auditors face different problems due to lack of financial resources .they heavily

rely on audited for stationaries , transportation , photocopies and other needs which creates

negative perception about government auditors and impedes their independence in most

instance .

Therefore its importance appropriate budgetary accusation be made for GAC by the national

government and it should be . In time to such reliance and avoid audit failures.

2. The top management of the GAC should ensure monitoring of the projects of audit in

substance as well as in terms of cost and timing . this includes regular reporting and

involvement of top might . this may lead to corrective actions and when needed revision of

the work plan . This will help avoid audit failures.

3. The top management of JSS review of draft reports is done. in time an given priority and

not delayed to avoid audit failure.

The JSS should institute control measures to the external factors . highlighted in this report

to avoid audit failure furthermore the staff of JSS conducting audits should not accept . it

staff of the audited entitle do not submit requested info. In a timely manner . this should be

brought to the attention of the supervisor . the audit manager and if require top management.

Area of further research

The top management of the JSS should ensure regular monitoring of the progress of audits in

substance as well as in terms of count and timing . this includes regular reporting and

involvement of top management. This may lead to corrective actions and the needed revision

of the work plan . this will hold avoid audit failure.

The top management review of drafts is done on time and is given priority and delayed so as

to avoid audit delay.

The should institute control resources to the eternal factors highlighted in this reports to

avoid audit failure furthermore staff of the JSS conducting audit should accept . if staff of the

audited entitles do not submit requested into a timely mummer. This should be brought to

attention of the audit supervisor. The audit and if required top management.
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Appendixes: interview guide

Demographic data

Age

Gender

Nationality

Native language

Occupation

Place of work

Position

Years of professional experience

Relational status (e.g. single in a relationship )

Type of employee ( e.g. permanent consultant etc.)

Educational level (e.g. BBA/BSC. MBA /MSC/ PHD. CPA.)

Introductory questions

Tell us about yourself ( name, profession, place of work, experience education)

Describe briefly how you as a auditor , see your role and your responsibilities ( independence

aspect, stakeholders focus social needs )

Describe briefly the type of external audits conducted by the JSS (financial performance and

compliance audits) all they conducted regularly or in accordance with audit plan / stationary

mandate)

Who are those audited quality and what are some attributes that makes an audit of quality.

Who are considered as stakeholders to JSS: what information does stakeholders needs.

What are the auditing standards used by the JSS and what are those international auditing bodies

the JSS is a member of?

Research questions . External factors that cause mismanagement of resource auditing . impacts

on public sector audit quality.

Do state regulations regarding the audit procurement process affect management of resources

Does not compliance e.g. ( auditees delay responding to auditors queries and etc. )by public

sectors affect management of resources .

Does the size of a public sector entity increase of results in management of resources. Please

explain

Does the presence of low quality financial reporting systems in public sectors entitles cause

mismanagement of resources?

Does politicians influence ( e.g. inadequate budgetary allocation and connection with entitles

being audited by JSS) result in mismanagement of resources ? Please explain.

Research question 2 internal factor that cause mismanagement of resource and their impact on

the quality of audit in the public institutions.

How long have you been auditing in public institution especially JSS)

What are the requisite requirement for supervising /managing an audit or being a member of

audit team?

Are you eligible based on those requirement? If yes please tell us how many audits have partook

and what are the outcomes?

How the audit team a particular engagement selected is does the lack of diversity in the auditors

expertise on the audit team results in mismanagement of resources.

Have you supervise on audit engagement selected? If yes could you elaborate on the challenges

encountered in relations to audit being delayed specifically external factors e.g. political

government and citizens related.

Appendix 2 consent form for interview

Title of research projects

The purpose of this study is to explore the effects of audit on management of resources in public

schools in Kiambu county.

A case study of joy town secondary school in Thika

Detail of projects

The master project is an explorative study to underlying the effects of both internal and external
factors on audit delay and the after they have as public sectors audit quality
Contact details
For further information about research or your interviews data please contact Richard barons
fully ( +46733943644)
Richard b1989@yahoo.com ) if you have concerns questions about the research you would like
to discuss with someone else at the university please contact our supervisor . in person of
Giuseppe. Groaai (gluseppe.grosse@ifke.se) the research will be conducted in English.
Data storage
All interview transcripts will be stored in confidence and an accordance with the data protection
act as well as the university general data protection guidelines. if you requested you will be
supplied with a copy of your interview transcript

Annoying
All data that the researchers extract from this project for use in reports or published findings will
not under any circumstances curtain names or reveals your identity
Consent

I willingly agree to partake and to the use of the interview data for the purposes specified above.

I have heard and understood the illustrative information. I understand that in have the right to

withdraw from the interview at any time. I have the right to answer any questions asked should

in feel uncomfortable at any time during the interview

Signature date

Signature date