Abstract:
The purpose of this study was is to examine the effect of internal audit on performance of
manufacturing companies in Rwanda.The specific objectives of the study were to examine the
effectiveness of internal audit in BralirwaPlc and To assess the relationship between internal
auditing and Financial performance. The population under study is 30 employees of Bralirwa Plc
include finance employees, accounting, procurement, inspection, internal audit and managers to be
given questionnaires and interviewed. An explanatory research survey was adapted as research
design where a total sample of 30 respondents was selected. 100% of the respondents agree that they
like to have their Manufacturing audited. All supported their answers by mentioning that through
auditing, ones knows the financial status of Manufacturing. Other said that the auditing leads to
signified that having financial institution’s audited, Manufacturing performance is achieved that
ranges between 4.41 and 0.49 with standard deviation ranges said tha internal audit are independent
from 4.34and 0.65with standard deviation said that the internal audit is characterized by objectivity,
range between 4.26 and 0.60 with standard deviation argued that the internal is competence. From
these findings it is revealed that the internal audit is effective and reliable based on the
characteristics during 2020 to 2023 internal audit of Bralirwa plc identify the following errors: errors
of omission with 4.41 mean and 0.49standard deviation, 4.34mean with 0.65 standard deviation
mean errors of principle, 4.26 mean and 0.60 compensating errors, 4.34mean with0.48 standard
deviation, clerical errors and 4.38 mean with standard deviation 0.49 are embezzlement. These
findings allowed the researchers to say that the accountant of Bralirwa plc was not qualified of
preparing the financial statement fairly .But, the auditor contributed in collecting those errors. net
profit margin ratio from 2020 up to 2023 the ratio are 8.9%, 14.1%,14.3% and 16.1% respectively.
This means that in 2020 for 100rwf of sales has got 8.9 Rwf, in 2021 for 100 Rwf of sales has got
14.1Rwf. in 2022 for 100 Rwf of sales had got 14.3 and in 2023 for 100 Rwf of sales had got 16.1
The significant Spearman correlation coefficient value of 0.708 confirms what was apparent from
the table; there appears to be a strong positive correlation between the two variables. It means in
BRALIRWA PLC Internal Audit is essential in all operations.
