| dc.description.abstract | Management accounting literature show preventive accounting controls, accounting error
detection controls and corrective accounting controls as important aspect of enhancing
performance among firms. Prior studies fail to link preventive accounting controls, accountingerror
detection controls; and it is not apparent how corrective accounting controls relate with
performance of revenue collection authorities. Further they employ exploratory research design
and use small samples. The purpose of the study was therefore to assess internal accounting
controls mechanisms on performance of KRA, Western Kenya. The specific objectives of the
study were to; establish the associations between preventive accounting controls, accounting-error
detection controls and performance and examine the influence of corrective accounting controls
on performance of KRA. The study was guided by an adapted conceptual framework; the
contingency theory of cost accounting and new institutional sociology linking internal accounting
controls and performance was modified to suit the objectives of the study. A correlational research
design was employed. The target population was all the 88 employees of KRA in Western Kenya
and the sample was 80 employees though only 72 returned filled questionnaires. The study used
both primary and secondary data. A semi-structured self-administered questionnaire to the
employees of KRA was used to collect primary data. Secondary data was collected through
document review. Validity of the instrument was done using 10 % (8) of total KRA employees
while reliability of the instrument was checked using Cronbach's Alpha method and all the multiscale
items had alpha of more than 0.7 co-efficients. Data was analyzed using descriptive statistics
and Pearson's correlation analysis. Data was presented using tables, graphs and charts. The study
found that preventive accounting controls on performance was positive and significant (r =
0.415, p<O.Ol) implying that instituting preventive accounting controls leads to increase in
performance; accounting error detection controls had a positive and sisnificant correlation with
performance (r = 0.243, p<O.O1) meaning that putting in place accounting-error detection controls
leads to increase in performance and corrective accounting controls had a positive and
insignificant correlation with performance measured in terms of meeting revenue targets (r =
0.149, p>0.05) implying that putting in place accounting-error detection controls leads to an
insignificant increase in performance. The study concludes that application of preventive
accounting controls, use of accounting-error detection and lastly use of corrective accounting
controls influences performance positively of KRA. The study recommends that; the management
of KRA continue to intensify use of preventive accounting controls as this enhances performance
of the authority; emphasize on accounting-error detection controls as these are found to improve
performance· and continue applying corrective accounting controls as these leads to high
performance of the authority. The research findings are significant to KRA internal control policy
makers in designing appropriate internal accounting controls that safeguards revenue. | en_US |
