This study investigated the impact of auditing on corporate governance at the Kampala Capital City Authority (KCCA). Given Uganda's commitment to improving public sector governance and accountability, understanding the role of auditing in strengthening governance structures is critical. A mixed-methods approach was employed, and data were collected from 95 respondents comprising KCCA employees, auditors, councillors, and civil society representatives. Findings revealed a significant positive relationship between auditing effectiveness and corporate governance quality at KCCA (r = 0.76, p < 0.01). Specifically, internal auditing was found to be a stronger predictor of governance quality than external auditing at KCCA, highlighting the importance of robust internal audit functions in public sector entities. The study recommends strengthening KCCA's internal audit capacity, ensuring board independence, and improving public disclosure practices.