Title: Evaluating the levels of internal audit effectiveness among commercial and manufacturing state corporations in Kenya

Authors: James Odero; David Karungu Wang'ombe; Farida Abdul

Addresses: Strathmore University, Ole Sangale Road, Madaraka Estate, P.O. Box 59857, 00200, City Square, Nairobi, Kenya ' Strathmore University, Ole Sangale Road, Madaraka Estate, P.O. Box 59857, 00200, City Square, Nairobi, Kenya ' Strathmore University, Ole Sangale Road, Madaraka Estate, P.O. Box 59857, 00200, City Square, Nairobi, Kenya

Abstract: No organisation can refute the benefits of an effective internal audit. Organisations worldwide are making efforts to strengthen their internal auditing functions. These efforts aim to fully realise the benefits associated with effective internal audits. One such effort involves developing a scientifically validated measurement index to evaluate internal audit effectiveness. However, previous studies have demonstrated some shortcomings in this area. Previous researchers have executed existing measurement scales inadequately, failed to identify priority measures linked to internal audit stakeholders, and did not validate them. To address these gaps, we constructed an internal audit effectiveness scale. This study used fuzzy-AHP and principal component analysis (PCA) methods. Internal audit effectiveness is used as the primary measurement target. This study evaluates four dimensions: resources, organisational structures, processes, and organisational relationships. These four dimensions were used to build seven components and thirty indicators. The fuzzy-AHP and PCA methods provided important insights. For instance, among the four dimensions, internal audit processes are the least prioritised.

Keywords: internal audit effectiveness evaluation index; internal audit effectiveness indicators; fuzzy-analytical hierarchy process; FAHP; principal component analysis; PCA; internal audit levels; Kenya.

DOI: 10.1504/IJCA.2025.149509

International Journal of Critical Accounting, 2025 Vol.14 No.4, pp.354 - 384

Accepted: 05 Jun 2025
Published online: 04 Nov 2025 *

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