The study was set to examine the impact of internal auditing on financial performance of commercial banks in Uganda. The objectives, to investigate the relationship between risk management and financial performance of centenary bank, to examine the relationship between control activities and financial performance of centenary bank, to assess the relationship between control environment and financial performance of centenary bank and to determine the relationship between internal auditing and financial performance of centenary bank. The study was conducted using statistical research design of correlation and regression. This design was selected because the researcher intended to establish facts that already existed as opposed to research. The data was collected from the respondents using the questionnaires from 50 respondents of the bank. The study concludes that risk management has a significant role on the financial performance of centenary bank, the study on the second objective concludes that although control activities have impacted positively, there is still high degree of fraud and errors that has hindered effective operation of the bank. The third objective conclude that control environment has a significant role on financial performance of the bank, The fourth objective conclude that internal audit has an effect on financial performance of centenary bank, enhancing the communication within the organization, increase effectiveness in credit control, improve marketing activities of the organization and detection of failure for redress in the organization. The study recommends that the management of commercial banks should keep organizing seminars and workshops where auditors must have sufficient proficiency and training to carry out the tasks assigned to them. The auditors work must be carefully directed, supervised and reviewed. The amount of supervision required corresponds to the experience and skills of the auditor.