Internal audit controls and financial performance of SMEs in Kirinya, Bweyogerere
No Thumbnail Available
Date
2026-06-10
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Uganda Christian University
Abstract
The aim of this study was to determine the effects of internal audit controls on financial
performance of small and medium enterprises in Kirinya, Bweyogerere. This study was more
concerned with assessing the effect of internal audit control activities, audit control environment
and monitoring & evaluation on the financial performance of small and medium enterprises.
A cross sectional research design was employed in the study where data was collected from the
respondents at one particular point in time. A total of 170 owners/managers of small and medium
enterprises operating in Kirinya Bweyogerere and involved in different industries including
retail, hospitality, manufacturing and services were chosen for the study. Stratified random
sampling technique was used to sample 158 respondents from among the 170 study subjects.
Primary data were collected using structured questionnaires developed along a 5 point Likert
Scale. Descriptive statistics like frequencies, percentages and mean were used to analyze data.
The results of the study indicated that internal audit control activities, audit control environment
and monitoring and evaluation have a positive effect on the financial performance of small and
medium enterprises. From the findings of the study it was evident that audit control activities are
important since they help to detect fraud and improve operations. An effective audit control
environment promotes ethical behavior and accountability and finally monitoring and evaluation
helps to spot any problem early and make informed decisions.
It was concluded In the study that the financial performance of small and medium enterprises can
be influenced positively by internal audit controls. The study recommended that the SME owners
adopt internal audit processes.
Description
Undergraduate