Impact of Risk Management on the Functions of Auditing Process-3

IMPACT OF RISK MANAGEMENT ON THE AUDITNG PROCESS
A CASE OF INSURANCE COMPANIES IN ELDORET TOWN

BY MOSES KAMANTHI

JULY, 2013

IMPACT OF RISK MANAGEMENT ON THE AUDITNG PROCESS
A CASE OF INSURANCE COMPANIES IN ELDORET

BY MOSES KAMANTHI

A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE AWARD OF A MASTERS DEGREE IN BUSINESS ADMINISTRATION

DEPARTMENT OF BUSINESS ADMINISTRATION
FACULTY OF COMMERCE – GABA CAMPUS
THE CATHOLIC UNIVERSITY OF EASTERN AFRICA

JULY, 2013
DECLARATION
I, the undersigned, declare that this project is my original work and that it has not been presented in any other university or institution for academic credit.

Signature: .................................................... Date: ....................................

SUPERVISORS
This project has been submitted for examination with our approval as university supervisors.

University Supervisor
Signature: .................................................... Date: ....................................

University Supervisor

Signature: .................................................... Date: ....................................

ABSTRACT
Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities. The business world is becoming increasingly complex due to new, evolving, and emerging risks. Organizations are giving risk management more consideration, but implementing an effective risk management program takes time and discipline. The study was guided by the following research questions: What are the risk management strategies employed by insurance companies in Eldoret? How does the auditing process provide for risk uncertainties in insurance companies? What is the relationship between risk management and

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