Effect of Internal Audit on Financial Performance in Mbale District Local Government
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Date
2024-07-10
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Uganda Christian University
Abstract
This study was to examine effect of internal audit on financial performance in Mbale District
Local Government. The study was guided by the following research objectives: To examine
the effect of compliance audit on financial performance in Mbale District Local Government.
To assess the effect of value for money audit on financial performance in Mbale District
Local Government. To establish the effect of forensic audit on financial performance in
Mbale District Local Government. This research was undertaken to establish the effect of
internal audit on financial performance of Mbale district local government. The study
adopted a descriptive research design and both qualitative and quantitative approaches were
used as a way of triangulation. The population of study of 113 was selected from a study
population of 160 using Krejcie and Morgan table (1970). The study findings showed that all
the three dimensions that included compliance audit, value for money and forensic audit have
a statistically significant effect on financial performance of Mbale District Local
Government. In conclusion, the study conducted on the Mbale District Local Government in
Uganda found that compliance audit, value for money, and forensic audit all have a
statistically significant effect on financial performance. It is recommended that: The results
suggest that effective financial management practices, including compliance with laws and
regulations, maximizing value for money, and preventing and detecting fraudulent activities,
can positively impact the financial performance of local governments. These findings align
with previous research on financial performance in local governments in Uganda, which has
highlighted the importance of effective financial management and accountability
mechanisms. It is essential for local governments to prioritize financial management and
adopt comprehensive approaches to improving financial performance, including
strengthening institutional capacity, enhancing accountability mechanisms, and improving
revenue mobilization