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Audit Controls and Performance of Constituency Development Fund Projects in Embakasi East Constituency, Kenya

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Audit Controls and Performance of Constituency Development Fund Projects in Embakasi East Constituency, Kenya AUDIT CONTROLS AND PERFORMANCE OF CONSTITUENCY DEVELOPMENT FUND PROJECTS IN EMBAKASI EAST CONSTITUENCY, KENYA MARGARET W. MURIITHI D53/CTY/PT/24706/2013 A RESEARCH PROJECT SUBMITTED TO THE SCHOOL OF BUSINESS IN PARTIAL FULFILMENT FOR THE AWARD OF DEGREE MASTER OF BUSINESS ADMINISTRATION (FINANCE OPTION) OF KENYATTA UNIVERSITY DECLARATION This research project is my original work and it has not been presented in any academic institution for award of a degree. …………………………………….. ………………………… SIGNATURE DATE MARGARET MURI ITHI D53/CTY/24706/2013 I ascertain that this work is being done by this candidate under my supervision ………………………………….. …………………………… SIGNATURE DATE DR. JOHN N. MUNGAI LECTURER DEPARTMENT OF ACCOUNTING AND FINANCE ii DEDICATION I wish to bestow this work to my family members, friends and colleagues for support and concern they have demonstrated. iii ACKNOWLEDGEMENT I wish to acknowledge my Supervisor Dr. John N. Mungai for the support and guidance he has accorded during the entire period of this research project. I wish also to appreciate my classmates who offered me assistance in time of need. Special thanks to my family who tirelessly supported me morally and financially, not forgetting my employer for according me the time to do this research work. I give all glory to God my creator for enabling me move this far. iv TABLE OF CONTENT DEDICATION .................................................................................................................... iii ACKNOWLEDGEMENT ................................................................................................... iv TABLE OF CONTENT ....................................................................................................... v LIST OF TABLES ............................................................................................................. vii LIST OF FIGURES ............................................................................................................iix OPERATIONAL DEFINITION OF TERMS ...................................................................... x ABBREVIATION and ACRONYMS .................................................................................. xi ABSTRACT ........................................................................................................................ xi CHAPTER ONE INTRODUCTION .................................................................................... 1 1.1 Background of the Study ....................................................................................................... 1 1.2 Statement of Problem ............................................................................................................ 7 1.3 Objectives of the Study ......................................................................................................... 8 1.4 Research Questions ............................................................................................................... 8 1.5 Significance of the Study ...................................................................................................... 9 1.6 Scope of the Study................................................................................................................. 9 1.7 Limitations of the Study ...................................................................................................... 10 1.8 Organization of the study …………………………………………………………………10 CHAPTER TWO LITERATURE REVIEW...................................................................... 11 2.1 Introduction ......................................................................................................................... 11 2.2 Theoretical Literature .......................................................................................................... 11 2.3 Empirical Literature ............................................................................................................ 14 2.4 Summary of Literature Review and Gap............................................................................. 25 2.5 Conceptual Framework …………………………………………………………………...31 2.6 Operationalization of variables…………………………………………………………...32 2.7 Ethical Considerations……………………………………………….…………………..33 CHAPTER THREE RESEARCH METHODOLOGY ...................................................... 34 3.1 Introduction ......................................................................................................................... 34 3.2 Research Design .................................................................................................................. 34 3.3 Target Population ................................................................................................................ 34 3.4 Sampling Procedure and Sample Frame ............................................................................. 35 3.5 Data Collection Instrument ................................................................................................. 35 v 3.6 Data Collection Procedure .................................................................................................. 36 3.7 Validity and Reliability of Data Collection Instruments ..................................................... 36 3.8 Data Analysis Techniques and Presentation ....................................................................... 37 CHAPTER FOUR DATA ANALYSIS, INTERPRETATIONS AND PRESENTATION .. 39 4.1 Introduction ......................................................................................................................... 39 4.2 Response Rate ..................................................................................................................... 39 4.3 Demographic Results .......................................................................................................... 40 4.4 Detective Controls ............................................................................................................... 43 4.5 Preventive Controls ............................................................................................................. 51 4.6 Monitoring and Evaluation.................................................................................................. 60 4.7 Risk Assessment .................................................................................................................. 65 4.8 Project Performance ............................................................................................................ 68 4.9 Correlation .......................................................................................................................... 70 4.10 Regression Analysis ......................................................................................................... 72 CHAPTER FIVE SUMMARY, CONCLUSIONS AND RECOMMENDATIONS ...... 755 5.1 Introduction ....................................................................................................................... 755 5.2 Summary of the Key Findings .......................................................................................... 755 5.3 Conclusion of the Study ...................................................................................................... 77 5.4 Recommendations of the Study ........................................................................................ 778 5.5 Areas for Further Studies .................................................................................................. 778 REFERENCES .................................................................................................................. 79 APPENDICES .................................................................................................................... 86 APPENDIX I: GRADUATE SCHOOL APPROVAL LETTER .............................................. 86 APPENDIX II: RESEARCH AUTHORISATION LETTER ................................................... 87 APPENDIX III: LETTER OF INTRODUCTION TO RESPONDENTS ................................ 89 APPENDIX IV: QUESTIONNAIRE..................................................................................... 900 vi LIST OF TABLES Table 2.1: Summary of Literature Review Matrix........................................................................ 25 Table 3.2: List of Target Population of the study ......................................................................... 34 Table 3.3 List of Sample Size ....................................................................................................... 35 Table 4.4: Response Rate ............................................................................................................. 39 Table 4.5: Reliability Coefficients ................................................................................................ 39 Table 4.6: Respondents Gender .................................................................................................... 40 Table 4.7: Age in Years ................................................................................................................ 41 Table 4.8: Highest Level of Education ......................................................................................... 41 Table 4.9: Positioned in Constituency .......................................................................................... 42 Table 4.10: Period in Being Part Of Constituency CDF office .................................................... 42 Table 4.11: Effectiveness of the
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