The role of internal auditing on the performance of financial institutions in Uganda:

Abstract

The research study investigates the role of internal auditing on the performance of financial institutions in Uganda and United Bank for Africa (UBA) as the case study. The specific objectives were; to analyze the role of compliance with laws and regulations and performance of the financial institutes, to assess the role of safe guarding assets on the performance of financial institutes, and to explore the contribution of reliable financial and management reporting at United Bank For Africa (UBA).The primary purpose of the study is to know how financial institutions use various controls to improve financial performance in banking sector. A case study design was used to conduct the study with a population size of 45 and a sample size of 40 respondents. Questionnaires and interview guides were used as instruments of primary data collection. Purposive sampling was used for managers or supervisors and stratified sampling technique was used to select the sample among low level employees, correlation analysis was employed. 40 questionnaires were administered but 35 were returned giving a percentage response of 87.5% which left 5 irrecoverable. Tables and simples percentages were used in bio data presentation. The finding of the study reveals that there is positive and significant relationship (r = 415, p<0.013), between internal auditing and organizational performance. The research recommended that UBA should maintain the existing policies of safe guarding organizational assets, compliance with laws and regulation, and reliability of financial and management as per results of the findings which showed a positive significant effect on these attributes to organizational performance of the bank.