Auditing serves as a fundamental pillar of corporate governance, providing independent assurance that organisational resources are managed with integrity, efficiency, and accountability. In the public sector, the stakes are particularly high: the misuse of public funds deprives citizens of essential services and erodes democratic accountability. This study investigates the impact of auditing encompassing both internal and external audit functions on corporate governance quality at the Kampala Capital City Authority (KCCA), Uganda's principal urban management authority. Anchored in Legitimacy Theory and Public Accountability Theory, the study employs a mixed-methods design. Primary data were gathered from 143 respondents including KCCA management, internal audit staff, Directorate officers, and members of the KCCA Authority Board, supplemented by analysis of audit reports, Inspectorate of Government reports, and Office of the Auditor General findings for 2017–2023. The study assesses internal audit effectiveness, external audit impact, audit committee functioning, and follow-up on audit recommendations. Findings reveal that effective internal audit reduces governance risk indicators by 52% and that implementation of Auditor General recommendations is positively correlated with reduced audit queries (r=0.713, p