Internal Auditing and Performance of Business Enterprises in Uganda a Case Study of Shoprite Supermarket Kampala District

Abstract

This study on the effect of internal auditing on performance of business enterprises in Uganda was carried out in Shoprite Supermarket in Kampala District. This study was carried out with a hope of establishing whether an effective internal auditing system would improve performance.

In this study, research objectives were set to establish whether internal auditing reports have an effect on performance of business enterprises in Uganda, to establish whether internal audit reviews and recommendations are key to effective performance of business enterprises in Uganda and to establish whether the independence of the internal audit function influence overall organizational performance.

To achieve this, primary data was collected through questionnaires that were distributed to the employees working with Shoprite Supermarkets from the six departments that included; administration, accounting and finance, internal audit, customer care, marketing and procurement and logistics. Primary data was analyzed using descriptive statistics, tables, frequency counts, figures and percentages.

On the other hand, secondary data was collected from sources that included; text books, website journals, international published journals, articles and news paper reports.

Findings were; the problem of poor performance that persisted at Shoprite Supermarket was due to the weak internal auditing system used. Management did not ensure that the internal auditing activity is used optimally. While internal audit reports were not used properly, internal audit reviews and recommendations were not used effectively. And on top of these, the independence of the internal audit function was not respected by management as expected.

It is recommended that management in business enterprises should ensure that internal auditing is often seen as an independent, objective assurance and consulting activity which should be optimally used to reduce, avoid or mitigate risks, add value and improve an organization’s operations and lead to improved performance. Future research studies should also focus on the effect of risk management and performance of business enterprises in Uganda.

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