Welcome to Metropolitan International University Journals
editor@miu.ac.ug
Metropolitan Journal of Academic Multidisciplinary Research

Audit Quality And Financial Reporting Performance Of Financial Institutions In Uganda. A Case Study Of Centenary Bank Mukono Branch

Authors: Igama Emmanuel1 , Kabanda Richard2

Journal: Metropolitan Journal of Academic Multidisciplinary Research (MJAMR)

Volume/Issue: Volume 5 - Issue 5

Published: 05 Jun 2026


Abstract

This study examined the relationship between audit quality and financial reporting performance at Centenary Bank Mukono Branch, Uganda. The study was guided by three objectives: to assess the effect of auditor independence on financial reporting quality, to examine how audit firm size influenced financial reporting accuracy, and to determine the relationship between audit tenure and the reliability of financial statements. A cross-sectional survey design was adopted, and primary data were collected from 80 respondents comprising internal auditors, finance officers, branch managers, and senior accountants using structured questionnaires. Secondary data were sourced from Centenary Bank's financial reports for the period 2018–2023. Data were analysed using descriptive statistics, Pearson correlation, and multiple regression analysis. The findings revealed that auditor independence had a strong positive effect on financial reporting quality (r = 0.74, p < 0.01), audit firm size was significantly correlated with financial reporting accuracy (r = 0.68, p < 0.01), and audit tenure negatively affected financial statement reliability beyond a six-year threshold. The study concluded that improving audit quality mechanisms significantly enhanced financial reporting performance at Centenary Bank Mukono Branch. Recommendations included mandatory partner rotation, strengthening audit committee oversight, and enforcing auditor independence standards aligned with International Standards on Auditing.
Keywords

audit quality, financial reporting performance, auditor independence, audit firm size, audit tenure, Centenary Bank, Uganda

Download Full PDF Back