Journal
Metropolitan Journal of Academic Multidisciplinary Research
MJAMR
Relationship Between Auditing And Financial Performance Of Kasese Municipal Council. A case study of Kasese Municipal Council.
Kiripi Jeninah, Zikusooka Enock
| Journal | Metropolitan Journal of Academic Multidisciplinary Research (MJAMR) |
| Volume / Issue | Vol. 4, No. 12 |
| Published | 31 December 2025 |
| ISSN | 3006-4384 |
Abstract
The study examined the relationship between auditing practices and financial performance of Kasese Municipal Council in Western Uganda. The research was motivated by persistent concerns about financial management and accountability in local governments, which often resulted in service delivery gaps. Using a cross-sectional research design, data were collected from 78 respondents including council staff, auditors, and financial managers through structured questionnaires and interviews. The study employed both descriptive and inferential statistics, including Pearson correlation and regression analysis. Results revealed a strong positive correlation (r=0.782, p<0.01) between internal audit effectiveness and financial performance. The regression analysis showed that audit quality explained 61.2% of variance in financial performance (R²=0.612, F=48.367, p<0.001). Specific findings indicated that internal control systems (β=0.456, p<0.01), audit independence (β=0.389, p<0.01), and compliance auditing (β=0.312, p<0.05) were significant predictors of financial performance. The study concluded that strengthening audit functions significantly enhanced revenue collection, expenditure control, and overall financial accountability at the municipal level. Key recommendations included: increasing budgetary allocation to the internal audit department, recruiting qualified audit personnel, establishing an independent audit committee, and implementing computerized financial management systems. The study contributed to the literature on public sector financial management and provided practical insights for local government administrators and policymakers seeking to improve financial performance through enhanced auditing mechanisms.
Keywords
Auditing
Financial Performance
Internal Control
Local Government
Kasese Municipal
Cite This Article
Kiripi Jeninah & Zikusooka Enock (2025). Relationship Between Auditing And Financial Performance Of Kasese Municipal Council. A case study of Kasese Municipal Council. Metropolitan Journal of Academic Multidisciplinary Research, 4(12). https://journals.miu.ac.ug/pages/article.php?article_id=541
More in This Issue
View full issue →
6
Effect Of Corporate Social Responsibility (CSR) On Organizational Development In Uganda. A Case Of Total Energies Kampala
Corporate Social Responsibility
organizational development
Total Energies
stakeholder
7
Effect Of Employee Competence On Performance Of Small And Medium-Sized Electronic Enterprises In Kampala District, Uganda.
Employee competence
SME performance
electronic enterprises
skills development
8
Effect Of Internal Control On The Performance Of Organizations In Centenary Bank Limited Kiboga Branch
Internal Control
Organizational Performance
Banking Operations
Control Environment
9
Effect Of Internal Controls On The Public Funds Of Nebbi District Local Government
Internal controls
public funds
local government
accountability
10
Effect Of Reduced Market Risk On The Performance Of Mutima Quality Feeds In Natete Kampala
market risk
business performance
livestock feed industry
risk mitigation