The study was carried out to find out the impact of Internal Audit practices on fraud detection in financial institutions in Uganda, taking a case study of ABSA BANK, Kampala town Jinja road. The study aimed at detecting fraud in financial institutions in Uganda, finding out its causes, impacts and how to overcome it and make sure it doesn't appear even in future. The study applied both quantitative research designs where questionnaires was used as primary sources of data. Data was processed and analyzed using formal tables, pie charts, narrative text, and correlation to find out the impact of Internal Audit practices. A total of 10 respondents were considered out of the entire population of employees in the bank. Also, in the issue of the organization hiring external auditors to prove the work done by the internal auditors, 54.2% strongly agreed, 41.7% agreed, 3.1 % disagreed as 1.0% strongly disagreed. In the essence of the organization putting stringent book keeping policies, 41.7% strongly agreed, 55.2% agreed, and 2.1 % disagreed as 2.1 % strongly disagreed. In things concerning the organization putting in place an office in charge of environment, 44.8% strongly agreed, 5.0.0% agreed, 3.1 % agreed, as 2.1 % strongly disagreed. Organizations should come up with better skills and knowledge to impact in the beneficiaries so that they can learn how to overcome the typical risks that are associated with auditing for example fraud, misappropriation of funds. However, there is a need to provide for a productive design feature to remove the challenges faced by the organizations in making use of the Internal audit services