Browsing by Author "Peninah Nakyobe"

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    Internal audit function and financial performance of commercial banks: a case of ABSA bank, Uganda
    (Uganda Christian University, 2026-04-17) Peninah Nakyobe
    This study investigated the influence of internal audit practices on the financial performance of commercial banks in Uganda, using ABSA Bank Uganda as a specific case. The research focused on three main areas: the role of the control environment, the impact of risk assessment practices, and the contribution of monitoring activities to overall financialOutcomes. The investigation entailed a cross-sectional research design where quantitative data was majorly used for purposes of collection while qualitative data was acquired via semi-structured interviews. Data was collected from 44 participants who were administered with the structured questionnaire and five participants who were interviewed. Quantitative data was analyzed using descriptive statistics, Pearson Correlation coefficient, and multiple regression using SPSS version 26. Interviews provided more contextual information about the findings but did not play a big role in analyzing data. Ethical principles such as informed consent, confidentiality, and anonymity were strictly adhered to during data collection. The findings indicate that internal audit processes have a strong positive influence on the financial performance of ABSA Bank Uganda. More specifically, the control environment was positively correlated (r = .754, p < .01) and made a substantial contribution to performance improvement (β = 0.325, p = 0.000). Financial performance measures had the strongest association (r = .776, p < .01; β = 0.415, p= 0.000), while monitoring practices demonstrated a substantial positive correlation (r = .740,p < .01; β = 0.224, p = 0.000). Collectively, both these components could explain approximately 60% of variance in financial performance indicators like ROA and ROE. The paper suggests that having a sound control environment in place, conducting effective risk assessment and monitoring are important factors that may contribute to improving efficiency and profitability and minimize risks of commercial banks. Specifically, it is recommended to keep investing into ethical leadership and education, digital risk management, follow-ups from auditing, as well as using technology for more efficient monitoring.