External Audit Quality and Financial Accountability of County Government of Bungoma, Kenya

The persistent challenge of ensuring financial accountability in devolved government units remains a critical issue in Kenya, with concerns over audit effectiveness and transparency affecting public trust and governance outcomes. Despite the existence of audit frameworks, questions about their sufficiency in promoting accountability continue to arise. This study sought to investigate the effect of external audit quality on the financial accountability of Bungoma County Government in Kenya. The study was guided by four specific objectives: to determine the effect of audit data analytics, evaluate the effect of audit capacity building, examine the effect of audit innovation adoption, and determine the effect of audit standards and compliance on financial accountability. Theoretical underpinning was drawn from the Agency Theory, Technology Acceptance Model, Resource-Based View and Diffusion of Innovation Theory. A descriptive and explanatory research design was adopted for this study. The target population comprised of 150 officials including Chief Officers, internal auditors, and staff from the Office of the Auditor General. Census method was applied since the target population was small. Data was collected using structured questionnaires. Validity and reliability analysis was ensured through expert reviews and judgement during a pilot study conducted in Kakamega County. Reliability was tested using Cronbach’s Alpha in SPSS version 27, with all variables showing acceptable internal consistency (α>0.70). Descriptive statistics described trends while inferential analysis (correlation and linear regression) tested relationships. The findings revealed that audit data analytics, audit capacity building, audit innovation adoption and audit standards and compliance all had significant positive effects on financial accountability. Consequently, all the null hypotheses were rejected. The study concluded that external audit quality plays a key role in enhancing financial accountability in devolved units. The study therefore recommends that county governments should enhance audit data analytics, invest in continuous auditor training, adopt innovative audit tools, and ensure strict compliance with auditing standards. Practically, the study provides actionable insights for county managers, policymakers, and auditors to strengthen financial accountability. In the theoretical realm, it contributes to existing literature by applying established models within a public sector audit with specificity in Kenya’s devolved governance system.