The study examined “Internal Audit and Organization Performance” in Public Enterprises in Uganda: A case Study of Uganda National Airlines Company Limited. The study objectives examined were; to examine the effectiveness of risk management practices on organizational performance within Uganda National Airlines Company Limited, to evaluate the effect of internal control systems on organizational performance at Uganda National Airlines Company Limited: to investigate the influence of governance processes and compliance on organizational performance at Uganda National Airlines Company Limited. The study was cross-sectional design which involves gathering data from a specified population once at a given point of time. This approach was sought because of the following advantages: it gives time to observe what a researcher wants to see; it is cost and time effective and it yields valuable data. Source of data was primary data and secondary data, and the methods and instruments included the questionnaire, interview guide and documentary review. Instruments included self-administered questionnaire, interview guide and documentary checklist. According to the findings, 73% of respondents indicated that regular and thorough internal audit have led to improved adherence to regulatory requirements and internal policies. This is evidenced by a 40% reduction in compliance breaches and a 30% decrease in operational risks, highlighting the critical role of internal audit in maintaining regulatory compliance and organizational integrity. The findings revealed that effective internal controls, such as regular financial audits and transparent reporting, significantly improve financial accuracy and reduce instances of fraud. The findings indicated that regular and thorough internal audits significantly reduce compliance breaches and operational risks, with 85% of respondents acknowledging that these audits led to a 40% reduction in compliance violations. The study recommended that the company continues to strengthen its comprehensive risk management frameworks. It is recommended that the company continues to enforce and expand its internal control systems, particularly in financial oversight. The study recommends enhancing the role of internal audit in strategic decision-making and organizational accountability.

A Dissertation Submitted to the School of Business Administration in Partial Fulfillment of the Award of Master’s Degree in Business Administration of Nkumba University