Makerere Business Journal
Permanent URI for this collection
Browse
Browsing Makerere Business Journal by Author "Bananuka, Juma"
Now showing 1 - 3 of 3
Results Per Page
Sort Options
- ItemThe impact of merger and acquisition on firm performance in East Africa(Makerere University Business School, 2017-12-28) Nagasha, Scola; Bananuka, Juma; Musimenta, Doreen; Lulu, GuPurpose – The purpose of this paper is two-fold: the first is to establish whether, in the face of the company-pay model, financial statement preparers perceive threat and enhancing factors of Auditor Independence (AI) the same way as users and external auditors, then secondly to model AI factors in Uganda. Design/methodology/approach – A two-methods approach is used which comprises, use of a one- way ANOVA where the independent variable (AI factors) is measured using different participants or groups (preparers, auditors and users) to examine the differences in opinions between the groups, and confirmatory factor analysis technique of structural equation modelling to achieve the two-fold objective. We use a self-administered survey questionnaire to accountants in Uganda involved with entities’ financial statements as preparers, external auditors or users to collect data. Findings – There are significant differences in opinions of the preparers and the other stakeholders (users and auditors) regarding non-rotation of audit firm, staff and partners and, board control of appointment and remuneration of auditors; as AI undermining factors. The preparers opine that failure to rotate auditors and the control of auditor appointment and remuneration by the board is more AI constraining, relative to the opinions of both the auditor and user regarding these factors. Financial statement preparers were more concerned than auditors and users that failure to rotate auditors and the control of auditor appointment and remuneration by the board impairs AI. A six- dimensional model of AI undermining factors was fitted and a five-dimensional model best fitted for AI enhancing factors. Practical implications – The paper provides two models that can be used by accountancy bodies or other stakeholders as a starting point in improving/or evaluating AI in developing countries. Originality/value – This study is representative of key parties on the demand and supply sides of the audit services market, auditors, financial report preparers and financial report users. It thus extends the frontiers of knowledge on critical factors affecting AI in a developing country context and has implications for theory, policy and practice.
- ItemPerceived internal audit roles and challenges in a developing economy(2017) Bananuka, Juma; Mukyala, Veronica; Nalukenge, IrenePurpose - The purpose of this study was twofold: 1) to explore the perceived Internal Audit (IA) roles and challenges faced by internal auditors in fulfilling their mandate among listed firms in Uganda and 2) to examine the extent to which internal auditor challenges could inhibit the performance of internal auditor roles. Design/ methodology – This is an exploratory study with mixed methods design. We collected data from internal auditors of 13 listed firms in Uganda through both the questionnaire and interview guide. Data were analyzed using SPSS and XL STAT 2016 with Partial Least Square Modelling because of the small sample used in this study. Findings – We find eight (8) most perceived internal auditor roles in Uganda such as ‘internal audit reports on the system for generating financial information’. Many of these roles suggest that internal auditors perceive their roles consistent with traditional ones that were designed to safeguard firm’s assets and assist in the production of reliable accounting information for decision-making purposes. We also find five (5) most perceived internal auditor challenges such as ‘internal audit recommendations are not worked on by management’. Furthermore, these internal auditor challenges explain about 31% variation in perceived internal auditor roles. Research limitations/implications - As the internal auditors face many difficulties, it is difficult to see how they could perform their perceived roles effectively and thereafter embark on their expanded roles as espoused in the model charter of Institute of Internal Auditors (IIA). Although we employ a relatively small sample size, this study’s findings can be generalized to Uganda and other similar environments’ listed firms. The results are useful in informing the debates of the regulators, standard setters, external auditors, academicians and policy makers. If internal audit function appear incipient in listed firms in this environment, it could be a worthwhile endeavor to establish what it is like in non-listed firms. Originality / value – We examine perceived internal auditor roles, internal auditor challenges and how the latter affects the former using evidence from Uganda – a developing economy. We also contribute towards a methodological position of mixed methods design by producing results from a smaller sample augmented by interview results in an environment characterized by smaller populations so that inferences can be made. The interpretive research agenda caters to social aspects of internal auditing neglected by positivist studies that largely tackle questions founded in the realist ontological position.
- ItemA qualitative inquiry on the determinants of internet financial reporting in Uganda(Makerere Business Journal, 2018) Bananuka, Juma; Kaawaase Kigongo, Twaha; Musimenta, Doreen; Namusobya, ZainabPurpose – The purpose of this paper is to report the factors that may affect the adoption of internet financial reporting in developing countries. Design/methodology/approach – The study in developing countries like Uganda used a cross sectional and narrative research design. Semi structured interviews were employed in the study to elicit responses from 35 Chief Finance Officers and Heads of Internal Audit Departments of various financial services firms. Findings – This study finds that stakeholder pressures, financial firm specific characteristics and governance factors are the key factors that may affect the adoption of internet financial reporting in an emerging economy. Originality/value – Internet financial reporting being an emerging phenomenon, there are few or even no qualitative studies that have examined which factors may affect the adoption of internet financial reporting in an emerging economy like Uganda. To the best of the authors’ knowledge, this is the first paper that provides some insights into the determinants of internet financial reporting using interviews.