MJAMR

Relationship Between Audit Practices Relationship Between The Financial Performance Of Selected SMEs In Wakiso District.

Magezi Allan, Dr. Moses Ntirandekura, PhD


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
Metropolitan Journal of Academic Multidisciplinary Research

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 →
56
Relationship Between Search Engine Optimization (SEO) Practices And Organizational Performance Of Tourism Businesses In In Central Division, Kampala District.
Kamugira Apophia1 , Dr Friday Christopher (PhD)2
Search Engine Optimization SEO practices organizational performance tourism businesses
57
Relationship Between Search Engine Optimization (SEO) Practices And Organizational Performance Of Tourism Businesses In In Central Division, Kampala District.
Kamugira Apophia, Dr Friday Christopher (PhD)
Search Engine Optimization SEO practices organizational performance tourism businesses
58
Relationship Between Sexual Harassment And Academic Performance Of Girls In Secondary Schools In Namayumba Town Council.
Mwanje Francis1 , Kiwanuka Rashid2
sexual harassment academic performance female students secondary schools
59
Relationship Between Social Media Marketing And Organizational Performance Of Tourism Businesses In Central Division, Kampala District.
Kamugira Apophia1 , Dr Friday Christopher (PhD)2
Social media marketing organizational performance tourism businesses customer engagement
60
Relationship Between Stock Control And Management Of Costs At Mukwano Group Of Companies.
Nakalyango Hildah1 , Babirye Shamirah2
Stock Control Cost Management Inventory Management Mukwano Group