MJAMR

The Influence of Internal Audit Reporting Practices On Financial Performance of Ankole People’s SACCO in Mbarara City. Male Kusayini

B /HD/ MBA /UMR


Abstract

This study aimed at investigating the influence of internal audit reporting practices on the financial performance of Ankole People’s SACCO in Mbarara City. The primary objectives were to evaluate the relationship between the accuracy and timeliness of internal audit reports and the financial performance of the SACCO, examine the effect of internal audit reporting transparency on decision-making and financial performance, and assess the role of internal audit reporting practices in enhancing financial accountability. Data was collected through structured questionnaires administered to SACCO management, internal auditors, and financial officers. A total of 120 respondents participated in the study, and data analysis was conducted using multiple linear regression techniques in SPSS and STATA. The results of the regression analysis indicated a significant positive relationship between the accuracy and timeliness of internal audit reports and the financial performance of Ankole People’s SACCO (β = 0.65, p < 0.01). Similarly, internal audit transparency was found to have a significant positive effect on decision-making and financial performance (β = 0.58, p < 0.05). Furthermore, the implementation of audit recommendations was positively associated with improved financial accountability, with a regression coefficient of β = 0.72 (p < 0.001), highlighting the importance of following through on audit findings. The findings suggest that internal audit practices significantly contribute to enhancing financial performance and accountability. The study concluded that accurate, timely, and transparent audit reports are critical for effective decision-making, which ultimately improves the SACCO’s financial outcomes. Additionally, the implementation of audit recommendations plays a vital role in fostering financial accountability and reducing the risk of financial mismanagement. Based on these results, several recommendations were made to improve the internal audit function at Ankole People’s SACCO. These include enhancing the accuracy and timeliness of internal audit reports, increasing transparency in audit processes, strengthening the implementation of audit recommendations, and fostering a culture of accountability within the SACCO. It is also recommended that the SACCO invest in professional development for internal auditors and adopt modern auditing tools to improve the quality of audit reports.

Keywords

Internal Audit Reporting Financial Performance Transparency Accountability SACCO Mbarara City Regression Analysis Decision-Making Audit Recommendations Financial Performance
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

B /HD/ MBA /UMR (2024). The Influence of Internal Audit Reporting Practices On Financial Performance of Ankole People’s SACCO in Mbarara City. Male Kusayini. Metropolitan Journal of Academic Multidisciplinary Research, 3(12). https://journals.miu.ac.ug/pages/article.php?article_id=1162

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