期刊名称：International Journal of Finance and Accounting
印刷版ISSN：2168-4812
电子版ISSN：2168-4820
出版年度：2014
卷号：3
期号：2
页码：82-87
DOI：10.5923/j.ijfa.20140302.04
语种：English
出版社：Scientific & Academic Publishing Co.
摘要：The main objective of the study was to investigate to what extent has regulatory pronouncement been effective in curbing financial statement irregularities in commercial banks in Kenya. Regulatory pronouncements discussed in this paper include systemic risk, credit risk, prudential risk and anti-money laundering guidelines. The population of the study was all the audit and legal managers in the 43 commercial banks in Kenya. Given that the population is not large, a census was conducted. Purposeful or judgmental sampling was used to select the respondents, therefore two managers; one from the auditing and legal departments was picked as the respondents thus the total sample size for the study was 86. Results indicate that banks’ internal systems are effective at detecting fraud, customer-related fraud and employee related fraud. Additional findings indicate that majority of banking institutions in Kenya have put in place good internal audit functions and there is transparency and accountability. Results also show that Kenya’s commercial banks have a responsibility management whose function is to set up a credit administration team to ensure credit granted to a client is properly administered. Majority of banks in Kenya have never been summoned upon money laundering crimes and banks in Kenya have invested in the training of staff in anti-money laundering in the bank. Conclusions made from the study shows that the identified regulatory pronouncements herein, if effective positively affects financial regularities. The unique contribution of this paper is that it clearly addresses the effects of some regulatory pronouncements, upon which majority of commercial banks in a developing economy ought to adapt to mitigate financial irregularities. The findings of these studies may be used to improve the training curriculum of audit and legal professionals in order to capture the important findings of the study.
