INFLUENCE OF GOVERNANCE INDICATORS ON DISCLOSURES IN PERFORMANCE AUDIT REPORTS IN NATIONAL GOVERNMENT CONSTITUENCIES DEVELOPMENT FUNDS
Authors: Johnson Jayden Wayne 
Published: February 2022

Purpose: The purpose of the study is to determine the Influence of governance indicators on Disclosures in Performance Audit Annual Reports: in the NG-CDFs, Kenya.
Design/ Methodology/Approach: This study adopted descriptive approaches to explain the influencers of disclosures and how they translate to the final outputs in form of audit reports. The study targeted all the constituencies in Kenya which are 290 with number of target respondents Specifically being Fund Account managers, district accountants, Accounts assistants, audit staff at the office of auditor general and Project Management Committee Members totaling to 1,169. Since the respondents targeted are many, and are spread all over the constituencies in Kenya, the sample size approximation used suggestions by Bartlett, Kotrlik and Higgins (2001) to arrive at a sample size of 107 respondents. The questionnaire was the main instrument for collecting primary data. Regression analysis was used to determine the cause-effect analysis while correlation analysis was applied to measure the strength of association between the study variables with the help of SPSS version 25.
Findings: The findings revealed that accountability (β=0.247, p=0.001), governance effectiveness (β=0.140, p=0.036), regulation quality (β=0.413, p=0.000) and corruption control (β=0.197, p=0.000) have a positive and significant relationship on the performance audit annual reports in the NG-CDFs in Kenya. This implies that improvement in 1 unit of the aspects related to accountability, governance effectiveness, regulation quality and corruption control improves the performance audit annual reports in the NG-CDFs in Kenya by 0.247 units, 0.140 units, 0.413 units and 0.197 units respectively. It was therefore concluded that corruption control, regulation quality, governance effectiveness, accountability) have a statistically significant and positive influence on the performance audit annual reports in the NG-CDFs in Kenya.
Contribution to policy and practice: In view of the above findings, openness and accountability in disclosures in performance audit annual reports. Therefore, the NG-CDFs in Kenya are encouraged to conduct continuous assessments, monitoring and evaluation of the audit team members in order to ensure accountability. The study also recommends the NG-CDFs in Kenya to continue with the continuous training and development of the audit staff to foster professionalism and quality of service delivery.
Originality/Value: The research work will add to the knowledge about African states Supreme Audit Institutions and Performance Audit activity by giving propositions on issues affecting disclosures in the performance audit annual reports. Therefore, scholars interested in accounting, public sector and finance will use this study as a platform for further research to fill the gaps that the study might have omitted. This research work would also be of significance and be of attention to Office of the Auditor General in aiding them mirror what factors influences their annual audit report disclosures which are translated in the audit opinions. It would advise on what model best suits the audit process at the OAG. The ministry of planning and devolution will reap from this study in understanding in details the contents of the annual audit reports that have often been presented by the OAG. Its findings will additionally validate some of the outcomes of previous studies