Purpose: The financial sector is being revolutionized as a direct result of technological progress, with banks and other financial institutions embracing new technologies to better serve their customers online. Technological developments in the financial sector are simplifying access to financial services. The study set out to dissect the effects of Fintech on Kenya's commercial banking sector. The general objective was to establish the effect of mobile banking on technical efficiency of commercial banks in Kenya. The study was anchored on Theory of Constraint-Induced Innovation. Methodology: The entire study relied on collecting empirical data and evaluating hypothesis in a positivist way. A causal-comparative research design was used in this research. The study targeted population of Seventeen Kenyan commercial banks from the first and second tiers. The analysis relied on secondary sources of information. The gathered quantitative data was analyzed using both descriptive and inferential statistics. Numbers, medians, and standard deviations were used to characterize the data, and frequency distributions were used to determine the sample size. Models for analyzing correlations and regressions are inferential statistics. STATA was used for the data analysis. Findings: The study established that mobile banking has a positive and significant effect on technical efficiency of commercial banks in Kenya. Unique contribution to theory, practice and policy: Commercial banks in Kenya are recommended to improve their mobile banking services in light of the study's findings.
Purpose: The regulation of Deposit Taking Saving and Credit Co-operative societies was expected to enhance transparency and accountability in the management of DT SACCO’s and thus protecting the interests of members. This was expected to lead to better service to members through provision of timely loans and advances with minimal risk exposures. SACCO’s have been identified as major financial player away from the Commercial Banks thus important in financial intermediation. Thus, the current study on the influence of credit management on financial intermediation efficiency of DT SACCO’s in Kenya. Methodology: The study targeted 174 DT SACCO’s operating in Kenya as at 31st December 2019. Data analysis was done using both descriptive and inferential statistics. Descriptive statistics used in the study included measures of central tendency; mean; dispersion and standard deviation. Inferential statistics used included correlation and regression analysis. Results: The study findings showed that there was a persistent increase in financial intermediation efficiency within the period under study and thus can be concluded that as DT SACCOs complied with credit managementon their financial intermediation efficiency improved. Unique Contribution to Theory, Practice and Policy: Pure efficiency was lower than scale efficiency throughout the period under study, thus there is need for management to examine their performance inefficiencies so as to minimize wastages and spillage of performance opportunities.
Purpose: This paper aims at examining factors that have an impact on internal audit effectiveness in the public sector. The objective of this study was to device a model that can be used in the public sector to enhance a sound internal auditing system that will boost financial accountability and quality audit work. The study focused on three independent variables such as management support for internal audit activity, organizational independence on the internal audit work, and the adequate of competent internal audit staff. Methodology: In order to achieve this, a quantitative survey research design was chosen as the research paradigm underpinning the study using structured questionnaires as data collection tool to a sample of 172 respondents comprising of internal auditors and users of internal audit services who were systematically randomly sampled. Results: The study findings revealed that both management support and organizational independence were low and that internal audit office of the sampled ministries and parastatals had low technical staff proficiency which limited its capacity to provide effective service. In line with the findings, the study recommended that: (i) the management should appreciate the role of IA by providing the necessary resources and trainings. (ii) Government should ensure that the independence of IA is guaranteed for them to work without fear or interference. (iii) Government should recruit and retain Internal Audit candidates based on their qualifications, experience, training attained and certification by the IIA. The research is limited with the issue of generalizability on other settings; therefore, a similar study can be conducted in the private sector using a mixed method approach.
Purpose: Technology has significantly impacted the efficiency of conducting business, among them, the digitalization of tax functions, which has led to the creation of operational efficiencies in terms of filing tax returns. The purpose of this research is to evaluate the effect of online tax system on tax compliance in Kitui County's SMEs. Specifically, the study focused on effect of online tax filling and online taxpayer registration on tax compliance in Kitui County. Methodology: This research was hinged on theory of Technological Acceptance Model, Diffusion of Innovation Theory and Theory of planned behavior. A descriptive research design was used in this study. The owners of the 442 small and medium businesses in Kitui County was the study's unit of analysis. A sample population of 206 is determined using the stratified proportionate random sampling technique. Self-administered questionnaires were used to collect primary data. The Statistical Package for Social Sciences was used to examine the data (SPSS Version 25.0). For all quantitative variables, descriptive statistics such as frequencies, percentages, average score, and standard deviation was computed after data cleaning, which includes checking for entry mistakes. The information was presented in tables and graphs. The relationships between the independent and dependent variables were established using multiple regression analysis. Findings: The study concluded that a unit increase in online tax registration leads to 0.807 increase in tax compliance by small and medium enterprises in Kitui County. The study revealed that a unit change in online tax filing leads to 0.731 change in tax compliance by small and medium enterprises in Kitui County. Unique Contribution to Theory, Practice and Policy: The study concludes that the KRA officials in Kitui county should conduct awareness programs among SMEs regarding the importance of online tax registration. The study informs policy as it seeks to help Kenya Revenue Authority in using effective measures to mobilize and motivate small tax payers to register online for turnover tax, value added tax among other taxes in order to increase tax compliance.
Purpose: Forensic accounting reflects the application of investigative and analytical techniques for the purpose of resolving fraudulent practices. The purpose of the research was to examine the extent at which Forensic Accounting Techniques serves as a panacea for preventing Revenue Leakages in Federal Universities in Nigeria. Methodology: Primary data were collected with the aid of research questionnaire and used in this study. The sample size of 238 respondents was determined from a census of targeted EFCC, internal audit staff of selected Nigerian Federal Universities. This study applied a statistical tool, which described and evaluated the relationships between Forensic accounting techniques and revenue leakages. Findings: The methodology shows that Forensic accounting data analysis techniques have positive effects on revenue leakages in Nigerian Federal Universities. This implies that a forensic data analysis technique can help in uncovering leakages of revenue in Nigerian Federal Universities. The implication is that when these technologies are applied, there would be drastic reduction in revenue leakages. From the findings, it was concluded that the application of forensic accounting techniques will help in preventing revenue leakages in Nigerian Federal Universities. Unique Contribution to Theory, Practice and Policy: On the basis of these findings and conclusion, it was recommended that forensic accounting data analysis and technology techniques should be employed in Nigerian Federal Universities to help them curb revenue leakages in the system. That will help to discover and analyse patterns of fraudulent activities and develop sorts of digital tools that would be found helpful in fighting economic and financial crimes within the system. Keywords: Forensic Accounting, Revenue Leakages, Frauds, Forensic Accounting Technologies
[ILLUSTRATION OMITTED] is a nation rapidly on the rise. In 2010, the country's economy grew 7.5%, making it the seventh-largest in the world, according to the World Bank. In 2011, Brazil's GDP is expected to grow 4.5%, slower than last year but still a healthy pace. And growth over the next few years also is projected to be robust as the country gears up to host two blockbuster events--the 2014 World Cup and the 2016 Olympic Games--that require huge investments in urban infrastructure, such as airports and public transportation. With its large, expanding domestic market (the fifth most populous in the world, with a substantial middle class), wealth of natural resources and stable democracy, is a thriving destination for foreign investors. According to the United Nations Conference on Trade and Development, ranked fifth among all countries in foreign direct investment inflows in 2010, rising from 15th the year before. In recent years, reported The Economist, Brazil has been transformed from 'country of tomorrow' to 'once-in-a-lifetime opportunity.' Despite these bright prospects, however, remains a complicated place to do business for foreign-based companies. Challenges include a highly complex and expensive tax and labor environment, burdensome bureaucracy, costly credit, lingering corruption and deep social imbalances. On the World Bank's Doing Business Index (tinyurl.com/3kpfdyc), ranks 127th among 183 countries in the ease of doing business, which it defines as having a regulatory environment that is conducive to the startup and operation of a local company. To gain insight into emerging opportunities, the JofA asked two top accountants with direct experience in to provide their perspectives about the country's business and accounting environment. Sharing their views were Eduardo Pestarino, regional executive for The Americas at Crowe Horwath International; and Jose Bendoraytes, managing partner of Horwath Bendoraytes Aizenman & Cia., a member firm of Crowe Horwath International in Brazil. Their answers are presented jointly LEGAL/REGULATORY JofA: What are the available forms of organization for a U.S. investor to do business in Brazil? Pestarino/Bendoraytes: A foreign company can apply to open branches in by submitting an application to the Brazilian government. There are several formalities that have to be fulfilled, including the filing of documentation with the National Department of Registry of Commerce (DNRC). The process of registering a new business can be lengthy, since it involves as many as 15 different procedures. Foreign companies must appoint a representative (who does not need to be a native Brazilian but must be a resident in Brazil) to act on their behalf. The two main types of business organizations in are the limited liability company (LTDA) and the corporation, known as Sociedade Anonima or SA. The LTDA is the simplest, least expensive and most popular form of organization in Brazil. It is similar to U.S. limited liability companies, limited partnerships and closely held companies. At least two partners are required to form an LTDA. The Brazilian corporation resembles a U.S. corporation. It also must have at least two shareholders, who are liable only to the extent of the stake they hold in the company A Brazilian corporation may be publicly held or closely held. A publicly held company must be registered at the Comissao de Valores Mobiliarios (CVM, Brazil's version of the SEC), along with the securities it issues, which may be traded on the stock exchange or on the over-the-counter market. The securities of a closely held company are not available to the general public. At this point in time, only has around 1,000 public companies. Most of the country's 6.2 million businesses are small and medium-size enterprises. …
DEVELOPING MEDIA contacts is an important component of any CPA firm's marketing program.THE FIRM SHOULD seek contacts at various media outlets and offer to provide insights for news stories or write articles.ARTICLE REPRINTS ARE valuable marketing tools that reinforce a firm's credibility and demonstrate expertise.TO MAINTAIN GOOD relationships with the media, CPAs should be candid and cooperative; provide interesting, timely article ideas; and keep media lists up-to-date.CPAs SHOULD AVOID technical jargon. Reporters tend to rely on sources they can easily understand and ones that do not waste their time on unrelated details.
The answer is a resounding yes. Many CPA firms approach small company consulting projects using the traditional method of service delivery. The result is they frequently perform too much of the work and the client winds up with a steep bill. There are three choices at this point: The client pays and is upset, the client doesn't pay and the CPA firm is upset or a compromise is reached in which both parties are mutually dissatisfied. After a few of these episodes, firms conclude consulting services can't be delivered profitably to small businesses. The reality is that one delivery methodology just won't be able to satisfy all clients. How have CPAs historically delivered traditional services? A client who hires a CPA to prepare a tax return or financial statement or perform an audit believes he or she is paying for an end product. This perception has become so prevalent it's uncommon for CPAs to bill for services not associated with a paper report. As a result, most firms emulate a job-shop environment. They take the raw materials - the client's records - and customize a product by sending them through the manufacturing process, during which the information is sorted, summarized, categorized, analyzed, extrapolated and so on. To arrive at a finished good and maintain client satisfaction, the CPA firm must correlate its available resources with the magnitude and complexity of the project and meet committed deadlines. What's the priority? In the small business arena, clients often can't afford to pay for the entire process. But they can and will pay for some stages of the process or just for management skills and expertise. This could make small business consulting an attractive practice area for many firms, but the problem is that CPAs often use only one service delivery methodology. When a custom-produced finished good is ordered, many CPAs retreat to their own plants where they can drive those products through the process most expeditiously. While there is nothing wrong with this approach, a problem arises when speed is less important to the client than, say, money. Therefore, CPAs must vary their delivery methodologies to reflect a client's specific situation. This may mean performing just one or some combination of the stages instead of all of them, managing the process using client personnel instead of their own or providing only advice and assistance to the client management team. The point is that CPAs must separate the advisory service from the implementation service (both of which are defined in the American Institute of CPAs statement on standards for consulting services). Even within the implementation service, the CPA should be ready and willing to segregate the various tasks in a manner that recognizes a variety of skill levels. This allows the client to specify engagement areas that are the client's responsibility and those that are the CPA's. This way, the client has the option of using his or her own less expensive labor force for some tasks as well as the ability to control the degree of his or her involvement. To deliver consulting services successfully, the CPA firm has to be able to match the delivery methodology to client resources. The MTS technique. To facilitate this, my firm developed a technique called MTS, which categorizes client resources into three broad areas - money, time and skill - and sets priorities based on greatest scarcity. The process works by discretely determining the answers to questions such as: * Does the client have the discretionary funds to hire outside assistance for this project? * What is the client's time frame for project completion? * Does the client have the in-house expertise or skills to perform this project? * Is the completion time more or less urgent than the need to minimize project expense? * Does the client have people available to work on the project? …
HIGHLIGHTS OF three surveys on how accountants use computer technology:ON AVERAGE, CPA firms spend $2.67 per chargeable hour on computer technology-that's about 3.5% of gross revenues and $2,053 per employee.LARGE CPA FIRMS are more likely to have local area networks (LANs) than smaller firms. The proportion of industry accountants who have LANs is greater than that of their colleagues in CPA firms: 48% of industry accountants versus 34% of public accountants. Of the respondents who are not on networks, 54% in public practice and 46% in industry say their organizations plan to add LANs within the next 12 months.THE HIGH-POWERED 486 and 386 computers are quickly gaining favor among CPAs, with large CPA firms moving most swiftly to acquire them . Laptops are used in 72% of CPA firms and in 75% of industry accounting offices.MANY CPAs don't seem worried about computer viruses. Only about a fourth of CPA firms and less than half Of the industry offices have procedure prevent the introduction of a virus. As for controls to prevent unauthorized access to computer systems and data, 43% of the public CPAs and 84% of the industry accountants use passwords.OVER 80% of both the public and industry CPAs perform regular data backups.BATCH PROCESSING is used by 62% of CPAs for individual income tax preparation, 34% for business income tax processing and 43% for financial statement preparation.
