Abstract:
The study aimed at comprehensively examine and analyse the relationship between external audits and
the performance of the Bank of Kigali within the Rwandan banking sector during the specified
timeframe, and specifically to assess the effectiveness of external auditing within Bank of Kigali Plc; to
analyse the performance of Bank of Kigali Plc within the period of the study and to determine the
relationship between external audit to performance of Bank of Kigali Plc. The study used a descriptive
research design and used also mixed method (Quantitative and qualitative methods) in data collection
and analysis. The population size for this study was composed of 28 employees of BK Group Plc in
Rubavu District. Respondents were selected using purposive sampling technique. The study used both
primary and secondary data as sources of information. Primary data were collected by using
questionnaire and secondary data were collected using documentary review. Data collected was
recorded and coded into (SPSS) software version 16.0 and they were analysed using frequencies, mean
and standard deviations. Multiple regression analysis was used to enable the researcher to establish the
relationship between the variables under study. The study found out that there is a positive high
relationship between external audit to performance of Bank of Kigali Plc. The result found from
regression analysis shows that the Multiple R is equal to 0.869 which high relationship between external
audit and financial performance of BK Plc. The coefficient of determination, adjusted R Square indicates
the variation in the dependent variable (financial performance) due to changes in the independent
variable. The findings in the above table the value of adjusted R square was 0.511. This indicates that
there was a variation of 51.1% in financial performance of BK Plc due to changes external audit.
However, 48.9% of the variation in the financial performance of BK Plc is explained by other factors
which are not explained by this model. The study recommended that BK Plc should be reviewing and restrategizing
its audit plan at the end of every financial year so as to improve their efficiency. BK Plc
should put much focus on qualified personnel; this may help it to minimize costs resulting from investing
in hireling due to retention and maximize profit and profitability as intended.
