Abstract:
This study examined the effect of corporate governance on quality of in local governments in Uganda. The study applied a cross sectional research design and quantitative approach. Data was collected from 140 as a target population with accessible unit of inquiry being 103 respondents consisting of consisting of accountants, administrators, internal auditors, social workers, legal officers, IT specialists, public information officers, security personnel, environmental officers and elected officials. Data was collected using a closed ended questionnaire and statistical package for social sciences was used for analyzing data from which frequency tables, descriptive statistics, reliability, validity, correlation and regression results were obtained. The study findings revealed that there was a positive and significant relationship between board composition and quality of financial reporting; audit committee and quality of financial reporting, and also on separation of ownership and control on quality of financial reporting. The study therefore, recommended that in order to improve the quality of financial reporting, local governments and other organizations should respect the autonomy of board of directors, should respect the set audit standards exercised by the audit committee and should also respect the supervision of the finance staff while conducting out their duties and responsibilities of their owners by not interfering in their activities.
