| dc.description.abstract | 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. | en_US |
