An Assessment of Internal Control System on Financial Performance in Tertiary Training Institutions in Kenya: A Case Study of African Institute of Research and Development Studies

The study was guided by the Agency Theory to test empirically the effects of internal control on financial performance in tertiary institutions in Kenya. The study used a case study research design. The target population of the study comprised all the employees of the institution who totalled 68 and due to the finite number census was used. Data was collected using structure questionnaires. The data was subjected to analysis by the aid of Statistical Package for Social Science (SPSS) using simple descriptive methods such as percentages, means, median, mode and standard deviations. Further, to assess the nature and strength of relationship between the independent variables and dependent variable, the Pearson’s Product Moment Correlation Coefficient (PPMC) was used. The findings showed that the institutions Internal Audit Department was not sufficiently staffed. It was recommended that The Internal Audit Department should be sufficiently staffed and the recruitment process of the auditors should be free from the management influence.