Effect of Internal Control Environment on Financial Performance of Public Organisations in Kenya
Abstract
A conducive internal control environment ensures that there are procedures adhered to and this
minimizes financial risks in the institutions. This study focused on establishing the effect of
internalcontrol environment on the financial performance of public organisations. Control environment
is the key feature of managing an organization. This is because it is a deliberation of the attitude and the
policies of management in respect with the significance of internal audit in the economic unit. The study
adopted descriptive research chosen because the study aimed at collecting information from respondents
in relation to effects of internal control environment onfinancial performance of public organizations in
Kenya.Data collected was collected with a questionnaire and analyzed using descriptive statistics which
includes percentages, means, standard deviations and frequencies. The findings revealed that control
environments affect the financial performance of public organizations in Kenya to a great extent.The
study concludedthat there is a significant effect of control environments on the financial performance of
public organizations in Kenya and recommend that public organizations should ensure they have
effective control environment and ensure that they establish relevant policies to ensure that their internal
control environment is effective to enhance the financial performance of public organizations