Abstract:
Bank of Kigali headquarters in Nyarugenge District served as a case study for this study, which examined the financial performance impact of internal audit. The main focus was on the internal audit practices as independent variable with gathering to prove the truth and fair view, prevention of errors and frauds, and reporting and performance of BK Plc institution in Rwanda as dependent variable as measured by performance contracts and accountability.
Internal audit services provide independent assurance that an organization’s risk management, governance and internal control processes are operating effectively. Performance is a BK Plc objective measure of how well a firm can use assets from its primary mode of business and generate revenues. To examine the effectiveness of internal audit in Bank of Kigali Plc.
To assess the relationship between internal auditing and financial performance of BK PLC
Any financial organization's internal audit department plays a key role in its financial success. It was the primary objective of this research to examine the effectiveness of internal audit specifically at the Bank of Kigali. The researcher used a descriptive and explanatory study methodology and asked 10 participants from various Bank of Kigali departments to complete a questionnaire. The study employed a universal sampling technique that does not include everyone in the population equally profitable in the sample. Primary and secondary data were both employed in this study to gather the information needed for it. Deposits of customers have increased in the last four years from in 2019 to 2022 was increase with 23% at 2020, 23.1% at 2021and 9.3% in 2022. This was possible in the bank because the way working capital was managed installed confidence in the minds of customers that increased their interest in bank and made more banking, this is result of evaluation done by the internal auditor was advice to the management of Bank of Kigali Plc. to eliminate error found in cashier service and the management of the BK PLC implementation those recommendation of the internal auditor relating with the quality of service. the net profit of Bank of Kigali Plc has increased with 2.9% in 2020 increased from25.9% in 2021 and because of pandemic of covid the net profit increased 13.1% in 2022 which indicates that the net profit in BK PLC keep on increasing which is the main indicator of high performance of the bank this means that The Management of Bank of Kigali Plc has accepted the recommendation given by auditor.
