Internal auditing and financial performance of public intuitions in Uganda; a case study of Kyambogo University
The main purpose of this study was to investigate the relationship between Internal Auditing and Financial Performance of Public institutions in Uganda, a case study of Kyambogo University. The study was guided by the following objectives to: establish the relationship of audit planning on financial performance, establish the relation ship of audit procedures on financial performance and establish how audit evidence affects financial performance of Kyambogo University. A case study research design was adopted which involved, Qualitative and quantitative research approaches. A sample of 92 respondents was selected to participate in the study. The data collection tools used included interview for management and the questionnaire forms for staff. The data was presented, analyzed and interpreted using tables and percentages, con elation and regression analysis. The study findings revealed a significant positive relationship between internal Auditing and Financial Performance. Results from the Multiple Ordinary Least Squares (OLS) regression analysis showed that Internal Auditing and Financial Performance predicted 26.7% of the Financial Performance. Audit planning advanced positively affects the levels of Financial Performance but not so strongly (p-value = 0.022). Audit procedures significantly affected the level of Financial Performance at (p-value = 0.028). Finally, the duration of the audit evidence effected the level of financial perfom1ance (p-value = 0.047 & r2=.3 11 ). The practical implication of these findings was that failure to establish an effective internal audit system in the public universities paralyzes the existence of internal audit functions and ruins organizational Financial performance, cost-savings oppol1lmities, which may prove critical in trying to effectively meet students' needs while balancing the budget in bid to realize the institution's goals and objectives. The study deduced that, internal auditing is a continuous process that requires reviewing the internal control systems and efficient audit planning backed by strong audit procedures also enriched by sufficient audit evidence. Kyambogo University had inadequate internal auditing system due to improper information systems which slowed down financial decision making to safeguard the assets, prevent and detect e1Tors, reviewing the internal control systems. The study recommends that, the institution's Internal Audit Department should be made independent to allow independent decisions making and reduce the bureaucratic tendencies experienced within the financial controls. Loopholes within the internal control should be revisited annually to prevent and detect fraudulent activities.