INTERNAL AUDIT AND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN UGANDA: A STUDY OF ABSA BANK UGANDA LIMITED MUKONO DISTRICT
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Date
2025-10-16
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Uganda Christian University
Abstract
The study examined the effect of internal auditing on financial performance of
commercial banks in Uganda focusing on ABSA bank Mukono branch. Internal audit
was looked at from the perspective of audit quality, risk management, and Internal
controls. This study selected 24 respondents who were from the internal audit,
finance& accounting, risk & compliance, operations, and others department. The
researcher conducted questionnaires to all member of the target group as it was
considered as the most relevant method to collect data. The data was carried out
using descriptive statistics which include Frequency distribution, mean and
standard deviation. Tables were used for simplicity of understanding and
expression in the data analysis.
From the results, the study concludes that risk management, audit quality, and
internal controls had a strong relationship with commercial banks financial
performance, this research discovered that effective management of risks is
relevantly related to improved financial performance of ABSA Bank Uganda,
internal audit quality is strongly positively associated with financial performance
indicators, ABSA Bank Uganda carries out internal audit activities in accordance
with accounting and regulatory needs for effectiveness and credibility.
The study recommends the need for ABSA Bank Uganda to continue improving its
risk management processes, to invest in continual training and capacity building
for internal audit staff, to adopt internal audit as a tool for cost containment and
operational effectiveness to enhance financial performance of banks.
Description
undergraduate research