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 →
16
elationship Between Adoption of Online Tax Systems and Financial Performance of Small-Scale Enterprises in Wakiso District, Uganda
line Tax Systems
Financial Performance
Small-Scale Enterprises
E-Taxation
17
en Control Environment And Financial Performance Of Private Organizations In Kagadi Town Council, Kagadi District
Control environment
financial performance
internal controls
private organizations
18
Enforcement and Compliance on Waste Management Practices in Kapchorwa Municipality Markets, Uganda
Enforcement
Compliance
Waste Management
Municipality
19
ent And Disaster Risk Reduction In Bulambuli District, Eastern Uganda
community participation
disaster risk reduction
decision-making
resilience
20
Gender Based Violence And Female Gender Livelihood In Isingiro District A Case Study Of Isingiro DistrictUganda
Gender-based violence
female livelihood
economic empowerment
Isingiro District