External Audit Quality, Implementation of Audit Recommendations and Performance: A Case of Government Agencies in Uganda.
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Date
2025-09-13
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Makerere University Business School
Abstract
The purpose of this study was to investigate the relationship between Ugandan government agency performance, the quality of external audits, and the execution of audit recommendations. The goals of the study were to determine how external audit quality and performance relate to each other, how performance and audit recommendation implementation relate to each other, and how performance is affected by both external audit quality and recommendation implementation. With 125 government entities in Uganda as the sample, 110 of them replied to the study's cross-sectional research design, yielding an 88% response rate. Reliability testing was done on the data, SPSS v23 was used for analysis, and the results were presented according to the goals of the study. Results showed that performance and the quality of external audits were significantly and favorably correlated. Additionally, there is a strong positive correlation between performance and the application of audit suggestions. The quality of external audits overall and the application of audit recommendations account for 32.4% of the variation in Ugandan government agency performance. Furthermore, it was discovered that the effectiveness of external audits was a more reliable indicator of government agency performance in Uganda than the execution of audit recommendations. Therefore, the study recommended that government agencies in Uganda should improve external audit quality through encouraging independence of auditors, effective communication and information access to attain good performance. Also, government agencies should implement audit recommendations through internal audit function, management actions and specificity and tone to attain high levels of performance. Further studies may also be conducted to ascertain other predictors of performance of government agencies in Uganda given that the independent variables predict only 32.4%
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This is a master’s thesis submitted to the Faculty of Graduate Studies and Research of Makerere University Business School in Partial Fulfilment of the Requirements for the Award of a Master's Degree in Business Administration of Makerere University, Kampala, Uganda.
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Opolot, J. (2025). External Audit Quality, Implementation of Audit Recommendations and Performance: A Case of Government Agencies in Uganda. (unpublished master's dissertation). Makerere University Business School, Kampala, Uganda.