Abstract:
The purpose of the study was to assess internal auditing on financial performance of financial institution in Rwanda. The specific objectives of the study were to assess the effectiveness of internal auditing function in BK PLC. The second objective was to examine the contribution of internal audit function on the performance in BK PLC/Main Branch. The fourth chapter is concentrates on analysis, interpretation and presentation of findings. Finally, this study is ended with the general conclusion and suggestions Results presented in the table 4.13 demonstrate that BANK OF KIGALI PLC recognized a continuous increase in deposit amount where it increased by 23.2% in 2021; by 10.3% in 2022 and by 27.8% in 2023. And as we all know deposit in banking sector are encouraged by different factors but customer care services are the most important because this trend may be caused by how well banks treat it customers. But internal audit is there to ensure that rules and regulations are respected. Therefore, this allow researcher to confirm that internal audit contribute to the increase in deposit from 2020 up to 2023 the ratios of net profit margin were 37.50%; 37.04%; 34.89% and 36.36% respectively. This means that for 100 Rwf invested, the bank got 37.50 in 2020 37.50Rwf in 2021; 34.89Rwf in 2022 and got 36.36Rwfs in 2023. The table 4.17 shows the Return on Assets ratio during the covered period. From 2020 up to 2023.The ratio of Return on Assets are 2.95%; 3.26%; 3.22% and 3.52% respectively. The table 4.18 shows that from 2020 up to 2023, the ratios of Return on Equity are as follow: 14.86%; 18.16%,18.72% and
20.42% respectively. This means that, in 2020; for the 100Rwf investors have invested in bank,theygenerated14.86Rwfofbenefit, in2021forthe100Rwfinvestorshaveinvestedin bank, they generated in 18.16Rwfof benefit, and in 2022 for the 100Rwf investors have invested in bank, they generated 18.72Rwf of benefit and in 2023 for100Rwf investors have invested in bank, they generated 20.42Rwf of benefit. Therefore, it is observed that credit management pray a very considerable role on this result because the return on equity on this sector mainly depends on how well shareholders investments as well as members’ term deposit were managed. Based on the above findings, the second hypothesis of the “internal audit contributes to the performance of Bank of Kigali PLC” was verified and confirmed
