A Survey of the Role of Audit Committees in Promoting Corporate Governance and Accountability in Constituency Development Fund Management

Abstract

The purpose of this study is to present a case for the need for audit committee in Constituency Development Fund to promote corporate governance and accountability in constituency development fund management in Nairobi Province, Kenya. The study provides an analysis and critique of the extent of engagement research in the field of corporate governance and accountability in constituency Development Fund management and present case for further research that may be directed to outside Nairobi province. The study found that the extent of literature in the field of corporate governance and accountability and reporting in contrast to the field to management CDF in Nairobi had largely ignored the practice within CDF organizations. The study arguesthat CDF can benefit from the methodological and theoretical insights of audit committee and other disciplines. The study suggests where further contributions might be made by future research endeavors engaging with audit committees with organizations. Engaging audit committee in CDF governance and accountability has the potential to improve theorizing practice and the sustainability performance with organizations. Drawing on the methods and theories of other disciplines and the papers in the special issues (of audit committee) the study presents away forward for researchers engaging with audit committees in organizational practicing corporate governance and accountability.

Keywords: {'name': 'Corporate Governance Accountability'}, {'name': 'Audit Committee'}, {'name': 'Constituency Development Fund'}

Authors & affiliations

Nicholas Muthuma Mutua
Affiliation not supplied

Samuel Kakui Kilika
Affiliation not supplied

Deposited references

Supplied references, not a list of publications citing this article.

A İCPA (2004), Conducting audit committee self-evaluation guideline and question , audit Committee Effectiveness

Centre.

Atwood Frank, Auditing , Pitman Publishing, London.

Auditor General of Canada (1999), İnvolving Others in Governing – Accountability at Risk, available at: www.oagbvg.

gc.ca/domino/reports.nsf (accessed 14 May 2008).

Auditor General of Canada (2000), Managing Departments for Results and Managing Horizontal İssues for Results,

available at: www.oag-bvg.gc.ca/domino/reports.nsfaccessed 14 May 20080.

DOI: 10.1146/annurev.psych.52.1.1

Barrett, P. (2001), E-government: Transforming Public Administration, Address to İnstitute of Public Administration,

Canberra, 30 April 2001, available at: www.anao.gov.au (accessed 14 May 2002).

Bean James W. (1999), the audit committee’s roadmap A İCPA.

DOI: 10.1002/bse.3280020201

and Accounting beyond Profit, Business Strategy and the Environment, Vol. 2 No.2, pp. 1-11.

Bell, J. (1993), Doing a Research Project, Beckingham, Open University Press.Brickley, D. and Dark, R. (2003),

NGOs Must Become More Accountable, Australian Financial Review, 22 July.

Blue ribbon committee (BRC) (1999), İmproving the effectiveness of corporate audit committee , New York.

Braiotta Louis (1999), The audit committee handbook , 3rd Ed John Wiley and sons İnc New York.

DOI: 10.2139/ssrn.269362

non profit and voluntary sector quarterly, Vol. 30 No. 3 pp. 569 – 587

Chan, D. D. & Kent, G. R. (2003). Accountability in the Management of Human Resources. Englewood Cliffs, NJ:

Prentice-Hall.

CMA (2002), Guidelines on corporate governance practices by public listed companies in Kenya.

Constituency Development Act 2003

Cooper D. R (1998), Business Research Methods, 6th edition, İrwin McGraw Hill N. Y.

Coopers & Lybrand (1995), Audit committee guide , Coopers & Lybrand.

Cronin, D., and O’Regan J., (2002), Accountability in Development Aid: Meeting Responsibilities, Measuring

Performance- Feignstain İnternational Center, Dublin.

Dezoot F.T. et al (2002) audit Committee effectiveness: a synthesis of he empirical audit committee literature , Journal

of accounting literature’ Vol. 21 PP 38 – 75.

Dose, J. J. & Klimoski, R./ J. (2005). Doing the Right Thing in the Workplace: Responsibility in the face of

Accountability. Employee Responsibilities and Rights Journal, Vol. 8

DOI: 10.1016/S0305-750X(03)00014-7

DOI: 10.1177/0899764004269430

Sector Quarterly, Vol. 34 No. 1, pp. 56-87.

Edwards, M. (2003), Participatory Governance into the Future: Roles of the Government and Community Sectors,

Australian Journal Public Administration, Vol. 60 No. 3pp. 78-88

Edwards, M. and Hulme and D. (eds) (19960. Non-governmental Organizations – Performance and Accountability:

Beyond the Magic Bullet, Earthscan, London.

Eisenhardt, K. M. (1989). Control: Organizational and Economic Approaches, Management Science, Vol. 14 No. 1,

pp. 57-74

Ferris, G.R., Mitchell, T.R., Canavan, P. J., Frink, D.D., & Hopper, H. (2000). Accountability in Human Resource

Systems. Human Resource Management Review Vol. 14 1-17

Fogarty, T.J. (1996). Financial Accounting Standard Setting as an İnstitutionalized action field: Constraints,

opportunities and dilemmas, Journal of Accounting and Public Policy, Vol. 11 (4): 331-356.

Fowler A.F., (1996), Assessing NGO Performance. Difficulties, Dilemmas, and a Way Ahead, İn Edwards, M and

Hulme, D. (Eds), Beyond the Magic Bullet. NGO Performance and Accountability in the post Cold War World,

Connecticut, Kumarian Press.

Goddard Andrew et al; Audit committee, Cadbury code and audit fees; an empirical Analysis of UK companies,

Managerial Auditing Journal MCB University press vol. `15 no 7 pp 355-371.

Gray, R., Bebbington, J., and Collison, D., (1970), NGOs, Civil Society and Accountability: Making the People

Accountable to Capital, Accounting, Auditing & Accountability Journal, Vol. 19 No. 3, pp319-348.

Graziano Cheryl (2004) , Audit committee step up , corporate Board Member.

Guthire, J., and Parker, L.D., (1990), Corporate Social Disclosure Practice: A Comparative İnternational Analysis,

Advances in Public İnterest Accounting, Vol. 3, pp. 159-176.

Guy and Burke (2001), Audit committees; A guide for Directors, Management and consultants,

Hair, J.F. et al (1992) Multivariate Data Analysis (3rd ed) New York: MacmillanJensen, M.C., & Meckling, W. H.

(1996). Theory of the Firm: Managerial Behaviour, Agency Costs and Ownerships Structure Journal of Financial

Economics Vol. 3, 305-360.

Herdman R. K.(2002), Making Audit Committee more effective, Tulane Corporate law institute New Orleans.

DOI: 10.1016/0304-405X(76)90026-X

financial economics Vol. 11 pp 305 – 360.

Joshi PL et al (2004), A Study of the audit committee function in the Brahmin; University of Brahmin, Management

Auditing Journal, Vol. 19 – no. 7.

Kalbers LP et al (1993) Audit committee effectiveness: an empirical investigation of the contribution of power

Auditing a journal of practice and theory 12, 24 – 24.

Katz, D., & Kahn, R.L. (1998). The Social Psychology of Organizations (2nd ed.) New York: Wiley.

Keohane, R.O., (2002), Commentary on the Democratic Accountability of Non-governmental Organizations, Chicago

Journal of İnternational Law, Vol. 3 No. 2, pp. 477-479.

Kimani, K. (2008), Resource Allocation and managerial Accountability in Kenya, NEMA Appraisal Report, Nairobi

Kovach, H., Neligan, C., and Burall, S., (2003), Power without Accountability Executive Summary of the Global

Accountability Report, (Electronic), www.oneworldtrust.org/htmlGAP/[Accessed:28 April 2008].

KPMG (1999), Corporate Governance: A guide to corporate accountability, KPMG Audit Committee İnstitute

KPMG, 2001 www. KPMG. Com/aci/surveys.htm.

Ladd, J.A. (1996). The Empowerment Process: İntegrating Theory and Practice. Academy of Management Review,

471-482.

Marshall, M., (2002), Legitimacy and Effectiveness; Civil Society Organizations’ Role in Good Governance, Paper

Presented at the Poverty Reduction Strategies Forum, Baden, Austria, October 29-November 1,2002.

McCarthy, A., (2001), Accountability ‘Vital’ if NGOs are to Retain Trust, (Electronic), www.proquest.umi.com

[Accessed: 31 March 2008].

Moldoveanu Michnea et al (2001), Agency theory and the design of an efficient governance mechanism, Rotman

school of management, University of Toronoto.

DOI: 10.1111/j.1467-7679.1996.tb00112.x

National Audit Office (2001), Joining up to İmprove Public Services, Available at: www.nao.gov.

uk/publications/nao_reports/index.htm (accessed 18 May 2008).

National Audit Office (2001), Measuring the Performance of Government Department available at:

www.nao.gov.uk/publications/nao_reports/index.htm (access 14 May 2008).

Neligan, C., (2003), Accountability Matters for İNGOs, BOND.NGO Watch, (2004), NGO Watch – İnformation ,

(Electronic), www.ngowatch.org/info.htm [Accessed; 31 March 2008].

O’Donovan, G. R. (2002). Accountability, İmpression Management, and Goal Setting in the Performance Evaluation

Process. Human Relations, Vol. 51, 1259 -1283.

DOI: 10.1007/978-1-4899-7138-8_4

Science, Vol. 25 No. 4, pp. 833-848.

Patten, J.E. (2002), Groups: İnteraction and Performance. Englewood Cliffs, NJ: Prentice -Hall.

DOI: 10.1108/02686909710180634

– 294.

Power Michael (2002); the audit society Oxford University press.

PriceWaterCoopers (1999), Audit Committees: Good Practices for meeting market expectations PriceWaterCooper, 7

– 9.

Protiviti (2003), The Expanded Responsibilities of the Audit Committees, A New Mandare, Bulletin Vol. 1 İssue 9.

DOI: 10.1108/02686909610107951

– 35.

Roberts, M. R. (2002), Surprise and Sense-Making; What newcomers experience when entering unfamiliar

organizational settings. Administrative Science Quarterly vol. 25, 226-251.

Ross, S. and Mitnick, B., (1973), The Economic Theory of Agency. American Economic Review Proceedings, May.

Schlenker, B. R., Britt, T. W., Pennington, J., Murphy, r., & Doherty, K. (2004). The Triangle Model of Responsibility.

Psychological Review, 101, 632-652.

Shamira Hussein (2003), The effect of audit committees on major disclosures and other non-financial characteristics

of companies listed at the NSE. Unpublished University of Nairobi.

Slim, H., (2002), By What Authority? The Legitimacy and Accountability of Non-Governmental Organizations, The

Journal of Humanitarian Assistance, (Electronic), www.jha.ac/articles/a082.htm [Accessed: 31 March 2008].

Stewart, J.D., (1984), The Role of İnformation in Public Accountability, İn Hopwood, A.G. and Tomkins, C.R. (Eds),

İssues in Public Sector Accounting, Oxford, Philip Allen.

DOI: 10.1108/02686900410524355

Terrell Mark (2003), Avalanche of corporate governance reforms challenges audit on effective oversight ,

Directorship.

Terrell Mark et al (2002), CFOs and audit committees: mutual expectations’ Financial executive.

Tomaszewski, L., and McCarthey, L.B., (2005), Accountability of Nonprofit Organizations and those Who Control

them; The Legal Framework, Nonprofit Management & Leadership, Vol. 6 No. 2, pp. 141-156.

Treadway Commission, (1987), Report of he National Commission of Fraudulent financial reporting , Washington.

Tricker, S. A., (1983), On the Edge of the Organization- the Role of the Outside Director, Wiley, London.

Ullman, J.J. (1995). The Development of Working Relationships. Englewood Cliffs, NJ, USA: Prentice-Hall.

Uphoff, N., (1996), Why NGOs are Not a Third Sector. A Sectorial Analysis with Some Thoughts on Accountability,

Sustainability and Evaluation, in Edwards.

USA Congress (2002), Sarbanes-Oxley Act , 107th edition Washington, DC.

DOI: 10.1108/02686909810226579

DOI: 10.1108/14720700210447632

MCB University Press.

Wapner, P., (2002). İntroductory Essay: Paradise Lost? NGOs and Global Accountability, Chicago Journal of

İnternational law, Vol. 3 No.1

Welman, J.C., Kruger, S.J. (2001), Research Methodology, 2nd ed., Oxford University, Cape Town.

DOI: 10.1111/1467-8500.00266

No. 1, pp. 114 – 19.

Zabihollah Razee (2003); İmproving corporate governance: The role of audit committees University of Memphis

Management Auditing Journal Vol. 18 no 6/7 530 – 537.

Zakaria İdrian (2003), ‘Lemonade stalls, agency theory and corporate governance.

DOI: 10.1108/02686900110363429

Managerial Auditing Journal Vol 10 no 1 pp 5 – 9.