This study aimed at investigating the influence of internal audit planning practices on the financial performance of Ankole People’s SACCO in Mbarara City. The research sought to assess the effectiveness of internal audit planning practices, the relationship between audit practices and financial performance indicators, and the impact of internal audit findings on decision-making processes. A quantitative research design was employed, utilizing structured questionnaires to collect data from internal auditors, management, and board members. The data were analyzed using multiple logistic regression through SPSS and STATA software to assess significant relationships between internal audit practices and financial performance. The regression results revealed that audit frequency had a significant positive impact on financial performance (p = 0.003). The likelihood of improved financial performance increased by 15% with each additional audit conducted within a year. Furthermore, audit scope was found to be positively correlated with both internal audit effectiveness and financial performance (p = 0.021). An expanded audit scope increased the likelihood of effective audits by 10%, suggesting that broader audit coverage results in a more comprehensive evaluation of the SACCO’s financial health. Risk assessments also showed a significant relationship with financial performance (p = 0.007). Specifically, the inclusion of risk assessments in the audit planning process enhanced financial outcomes by 12%. The relationship between management involvement and internal audit outcomes was significant, but weaker (p = 0.062), indicating that while management engagement positively influences audit effectiveness, its impact on financial performance is less pronounced compared to audit frequency and scope. Resource allocation for internal audits showed marginal significance (p = 0.097), with a trend indicating that adequate resources are vital for successful audit practices, though their direct effect on financial performance was not as strong as other factors. The study concluded that internal audit planning practices, particularly audit frequency, audit scope, and risk assessments, are critical in enhancing the financial performance of SACCOs. Timely and comprehensive audits, coupled with effective risk management, significantly improve financial decision-making and overall performance. It was also concluded that management involvement and resource allocation, though important, should be further optimized to enhance the overall audit process. Properly structured and resourceful audits not only improve the SACCO's financial health but also support effective strategic decision-making, ultimately ensuring long-term sustainability.