The contribution of internal auditing on the financial performance of small scale businesses

Abstract

The purpose of the study was to establish how internal auditing contributes to the financial performance of small scale businesses. The study focused on the contribution of financial, information system and compliance audits in businesses of Katwe Butego Division Masaka Municipality. The research methodology adopted both descriptive and analytical research design based on both open and closed ended questionnaires to gain an in –depth understanding of the contribution financial, information system and compliance audits. A sample of 80 respondents was used. A purposive sampling method was adopted for the study. Data was collected from both primary data with the help of questionnaires designed using like scales and secondary data got from text books, internet, journals, articles, and news papers. Data was also obtained by use of self administered questionnaires and key informant interviews from primary source while secondary data was captured from various compendia with relevance to the study subject at hand aimed at yielding validity and reliability of data mass. Data was analyzed using tables, percentages to establish, the contribution of the study variables. The principal benefit of this study at the end came up with the recommendations that was advance within the wider milieu of the strategic suggestions aimed at fighting poor performance of small scale businesses.