External auditing plays a pivotal role in ensuring the financial integrity, transparency, and accountability of higher education institutions increasingly complex organisations that manage substantial financial resources from diverse stakeholders including students, government, donors, and lending institutions. This study examines the relationship between external auditing and financial performance at Avance International University (AIU), Uganda. Drawing on the Stakeholder Theory and Signalling Theory frameworks, the study employs a case study design incorporating quantitative financial analysis and qualitative stakeholder interviews. Data were collected from AIU's audited financial statements for 2018–2023, supplemented by surveys of 94 respondents drawn from AIU management, the finance directorate, academic leadership, the governing council, and the external audit team, as well as six key informant interviews. The study examines four external audit dimensions: auditor independence, audit quality, timeliness of audit reporting, and audit recommendation implementation. Financial performance is assessed through revenue growth, cost efficiency, surplus ratios, and donor/grant income trends. Findings reveal statistically significant positive relationships between external audit quality and revenue growth (r=0.684, p