The Effect of Internal Audit on the Financial Performance of Commercial Banks. A Case Study of Stanbic Bank, Mukono Branch
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Date
2024-09-13
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Uganda Christian University
Abstract
The study focused on the effect of internal audit on the financial performance of commercial banks, a case study of Stanbic Bank, Mukono Branch. This study was guided by three key objectives: to determine the effect of internal audit practices on the financial performance of Stanbic bank mukono,to determine the effect of audit risk management practices on the financial performance of Stanbic bank mukono, and to determine the effect of monitoring and control activities on the financial performance of Stanbic bank Mukono.This study used a mixed-methods approach, combining quantitative and qualitative data. Information was collected using well-crafted questionnaires from a sample size of 30 respondents selected using the stratified random probability and the purposive non-probability sampling techniques among those involved in audit and risk management processes at the bank.The findings of the three objectives indicated that proper internal audit practices contribute to good financial performance due to increased transparency, accuracy in reporting, as well as adherence to regulatory standards. The engagement in practices of audit risk management reduces the potential losses resulting in increasing decision-making. Monitoring and control activities have been found as major means of ensuring continuity of financial stability because discrepancies that may occur in the financial practice are timely addressed before they affect the operations adversely.It was, therefore, concluded that robust internal audit mechanisms significantly influence improvement in the overall financial performance of commercial banks. Recommendations to improve the internal audit functions within the banking sector were also provided.
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Undergraduate research