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 →
26
Influence Of Teaching Quality On Learning Experience Among Graduate Students At Makerere University Business School
Teaching quality
learning experience
graduate education
Makerere University Business School
27
Local Revenue Sources and Urban Development in Kisoro Municipality.
Revenue generation
urban development
fiscal decentralization
accountability.
28
Media Discourse And Ethnic Conflicts In Isingiro District. A Case Study Of Isingiro Town Council - Uganda
External business environment
pricing effectiveness
clearing and forwarding
logistics industry
29
Political Decentralization On Social Development Outcomes: A Case Of Local Governments In Wakiso District, Uganda
Political decentralization
social development
citizen participation
accountability
30
Professional Development Motivation As The Strongest Predictor Of Teacher Service Delivery: Evidence From Rural Secondary Schools In Uganda
Professional Development
Motivation
Strongest Predictor and Teacher Service Delivery