INTERNAL AUDITING FUNCTION AND PERFORMANCE OF MULTINATIONAL CORPORATIONS IN UGANDA. A CASE STUDY OF MTN, KAMPALA UGANDA

ABSTRACT

This study sought to establish the effect of internal control system on performance of

Multinational Corporations. The study was driven by three objectives. These were; to examine

the effectiveness of the internal audit to determine the different types of internal audit practices

used and to establish the relationship between internal audit and performance. To achieve these

objectives, the researcher sampled forty (40) respondents, 57% were male and 43% were females

.The research was guided by three research questions. The first research question sought to find

out the effectiveness of internal audit function, research question two sought to find out the

different types of internal audit practices used and the third research question therefore sought to

find out the relationship between internal audit and performance, 50% of the respondents agreed

that the reporting relationship of internal audit is appropriate, 42.5% strongly agreed, 5% were

not sure and the 2.5% disagree. The findings revealed that there existed positive relationship

between the variables of study as conceptualized and that Multinational Corporations

perfbrmance had generally been fairy satisfactory and that internal Audit function in

Multinational Corporations was also fairy perforrning,35% of the respondents strongly agreed

and 60% were support of them, 2.5% were not sure and 2.5 disagree . The fair performance

being attributed to lack of complete independence of the internal auditors, inappropriate internal

controls, and managements’ reluctance to attend to the recommendations of the internal auditor

produced, 60% of the respondents agreed that the internal auditing department is independent

with 40% being in support of the statement. In a bid to improve performance, multinational

corporations management should ensure that politicians have limited influence in the works of

the internal auditor and that internal controls are always reviewed and evaluated so that they are

limited to manipulations and also put in place or strengthen disciplinary measures regarding

manipulation or override of these controls