Internal audit practices and financial performance perceptions in commercial banks in Kampala city

This study examined internal audit practices and financial performance perceptions among selected commercial banks in Kampala City, Uganda. Specifically, the study assessed professional competence among internal auditors, internal control practices, internal audit independence, and perceived financial performance. A descriptive cross-sectional research design was adopted using questionnaires and interviews to collect data from 108 respondents selected from six commercial banks in Kampala City. Data were analyzed using descriptive statistics, including frequencies, percentages, means, and standard deviations, while interview responses were analyzed thematically. The findings revealed that professional competence, internal controls, and internal audit independence were rated satisfactory among the selected commercial banks. However, financial performance was generally perceived as unsatisfactory, particularly regarding return on investment and liquidity. The study concludes that although internal audit practices support governance and accountability, commercial banks still face operational and financial challenges limiting performance improvement. The study recommends strengthening auditor competence, internal controls, and audit independence to enhance banking sustainability and financial performance.