Effects of Internal Control Components on Revenue Generation among Corporations in Kenya

Abstract

Most businesses have underperformed due to the ever-changing environmental forces that affect the operation of commercial enterprises. Strong internal control systems are necessary for the   institutions to implement sound revenue collection practices. Regarding the link between internal control systems and revenue generation, actual research in this area is scarce. The main objective of this research was to determine the effects of internal control components on revenue generation in Kenyan companies. The specific objectives focused on the effects of control environments, risk assessment, and control activities in Kenya. Agency theory and stewardship theory will serve as the study’s foundation. The study engaged in a literature review approach to find out whether there is a direct relationship between the internal control components and revenue generation. The study reached the conclusion that budgets heavily rely on revenue collection, which is essential to financial management. According to the report, management should continuously improve internal control procedures to keep the system current with expanding operational capability, regular internal training, and employee development.