Internal auditor independence, quality of financial reporting, ethical behaviour and performance in Uganda's public entities.

Abstract

The purpose of the study was to establish the relationship between internal auditor independence, quality of financial reporting, ethical behavior and performance. The study adopted a cross sectional design which was quantitative in nature. It involved descriptive and analytical research designs. The study sample comprised of 132 public entities of which 123 responded which is a 93% respond. The data was tested for reliability, analysed using SPSS and results presented based on the study objectives. Results revealed positive and significant relationships between quality of financial reporting and performance, internal auditor independence and quality of financial reporting, internal auditor independence and performance, and a positive relationship between internal auditor independence and ethical behaviour, ethical behaviour and performance. This implies that when one variable is improved it leads to improvement of the other. In addition, quality of financial reporting a better predictor of performance followed by internal auditor independence and lesser ethical behaviour which implies that to improve on performance; emphasis should be put on improvement of quality of financial reporting, and lesser emphasis ethical behaviour. The study recommended internal auditors to be independent in their audit work and independent in passing quality financial reports and also to be ethical in their work.