Journal
Metropolitan Journal of Academic Multidisciplinary Research
MJAMR
Relationship Between Audit Practices Relationship Between The Financial Performance Of Selected SMEs In Wakiso District.
Magezi Allan, Dr. Moses Ntirandekura, PhD
| Journal | Metropolitan Journal of Academic Multidisciplinary Research (MJAMR) |
| Volume / Issue | Vol. 5, No. 2 |
| Published | 28 February 2026 |
| ISSN | 3006-4384 |
Abstract
The study examined the relationship between audit practices and financial performance of small and medium enterprises (SMEs) in Wakiso District, Uganda. A cross-sectional survey design was employed with a sample of 170 SMEs selected through stratified random sampling. Data were collected using structured questionnaires and analyzed through descriptive statistics, Pearson correlation, and regression analysis. Results revealed that audit practices had a significant positive relationship with financial performance (r = 0.728, p < 0.01), explaining 53.0% of variance. Specifically, internal audit practices (r = 0.681, p < 0.01), external audit practices (r = 0.656, p < 0.01), audit independence (r = 0.639, p < 0.01), and audit recommendations implementation (r = 0.672, p < 0.01) all demonstrated strong positive relationships with financial performance. The study concluded that effective audit practices significantly enhanced SME profitability, operational efficiency, and financial transparency. Recommendations included establishing internal audit functions, engaging qualified external auditors regularly, ensuring audit independence, implementing audit recommendations promptly, and developing affordable audit service models tailored to SME resource constraints.
Keywords
Audit practices
financial performance
small and medium enterprises
internal audit
external audit
Wakiso District
Cite This Article
Magezi Allan, Dr. Moses Ntirandekura & PhD (2026). Relationship Between Audit Practices Relationship Between The Financial Performance Of Selected SMEs In Wakiso District. Metropolitan Journal of Academic Multidisciplinary Research, 5(2). https://journals.miu.ac.ug/pages/article.php?article_id=207
More in This Issue
View full issue →
1
Administrative Decentralization And Social Development: A Case Of Local Governments In Wakiso District, Uganda
Administrative decentralization
social development
service delivery
local governance
2
Administrative Support And Teacher Retention In Selected Private Secondary Schools Of Wakiso District, Uganda
Administrative support
instruction materials
teacher retention
working condition.
3
Adoption Of Artificial Intelligence And Internet Of Things For Sustainable Profitability In Nigeria’s Automobile Sector
Artificial Intelligence (AI)
IoT-Enabled
Sustainable Profitability
Environmental Sustainability
4
Assessing the Influence of Waste Disposal Regulation Awareness on Waste Management Practices in Kapchorwa Municipality, Uganda
Waste disposal
regulation awareness
management practices
traders
5
Community as Classroom: Vicarious Reinforcement in Traditional Male Circumcision and School Disengagement in Buyinja, Uganda
: Vicarious reinforcement
traditional male circumcision
school disengagement
observational learning