Effect of Internal Audit on Financial Performance of Commercial Banks in Uganda; A Case Study of Stanbic Bank Kansanga Branch
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Date
2019-07
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, College of Economics and Management.
Abstract
Financial performance requires appropriate internal audit practices to enhance efficiency.
For the purpose of this study the researcher sought to determine the effect of internal
audit on financial performance in commercial bank (Stanbic bank). Internal audit was
looked at from the perspective of internal audit standards, professional competency,
internal controls and independence of internal audit. The study selected one senior
manager in the finance department. The researcher administered a survey questionnaire
to each member of the target population since it was the most appropriate tool to gather
information. Quantitative analysis and regression analysis were used as data analysis
technique. Descriptive statistics such as mean, standard deviation and frequency
distribution was used in the analysis of data. Data presentation was done by use of tables
for ease of understanding and interpretation. From the findings, the study concludes that
internal audit standards, independence of internal audit, professional competency and
internal control had a positive relationship with financial performance of commercial
banks, the study found that a unit increase in internal audit standards would lead to
increase in financial performance of commercial banks, a unit increase in independence of
internal audit would lead to increase in financial performance of commercial banks, a unit
increase in professional competency would lead to increase in financial performance of
commercial banks and further unit increase in internal control would lead to increase in
financial performance of commercial banks. The study recommends that management in
commercial bank (Stanbic bank) should adopt effective internal audit practices such as
internal auditing standards, independence of internal audit, professional competency and
internal controls to enhance financial performance of the banks.
Description
A Research Report Submitted to The College of Economics and Management for The Award of The Bachelor’s Degree in Business Administration of Kampala International University
Keywords
Internal Auditing, Financial Performance, Commercial Banks, Uganda