Contextual Factors and Quality of Financial Reporting in Selected Public Technical Training Institutes in Kenya

This study examined the factors influencing the credibility of financial reports in selected Technical and Vocational Training Institutes (TVTIs) in Kenya. Its specific research questions were to explore internal control systems, audit committees, the adoption of IPSASs, and budgets in relation to the quality of reports of TTIs. The theoretical basis for the study drew upon Accounting Theory, Information Asymmetry Theory, and Agency Theory. The study population included staff members and board officials from ten TTIs across Kenya, with a random sample size of 145 participants. Data was analysed via multiple linear regression and descriptive methods, then summarised in text and tables. According to study outcomes, internal controls, audit committee, IPSAS adoption, and approved budget implementation were revealed as the key determinants of financial reporting quality. This paper has thus established that internal control is significant for increasing the accuracy of the reports, reliability, and efficiency of the reporting process. Functional audit committees are also statistically positively related to financial reporting quality. For IPSAS adoption, implication was made clear that reporting practices were to be enhanced, and the observation done showed a valid and positive association with IPSAS adoption. These outcomes audit the committee’s vitality in enhancing internal and financial reporting and improving accountability. It is beneficial to enhance financial reporting frameworks in public institutions to identify core facets regarding the financial statements’ integrity. It also attaches great significance to internal control systems as every financial activity's reliable and sound framework. The results are believed to enhance confidence in utilising funds sourced from donors within the public sector entities. Therefore, the study suggests that stewardship authorities should demand compliance with sound financial and reporting practices and ensure that all organisations in the public sector adhere to the set standards.