Uganda’s Proposed 2026 Internal Audit Reform: Strengthening Independence, Governance & Accountability

The Ugandan government is preparing a new law aimed at separating internal auditing from accounting roles as part of broader efforts to strengthen corporate governance, improve accountability, and enhance audit independence across both public and private sector institutions.

The proposed reforms are expected to align Uganda’s internal audit framework with the revised Global Internal Audit Standards, which became effective on 9 January 2025. The reforms seek to address long-standing concerns regarding conflicts of interest where the same personnel are responsible for both preparing financial records and auditing them.

Key Aspects of the Proposed Reform

Independent Regulation of Internal Auditors

The proposed law seeks to move the regulation of internal auditors away from the current framework under the Accountants Act, which requires internal auditors to be certified Chartered Accountants.

Increased Professional Specialization

The reforms are expected to encourage internal auditors to transition from broad accounting responsibilities to more specialized roles focused on governance, internal controls, compliance, and enterprise risk management.

Improved Audit Objectivity

By separating accounting and auditing responsibilities, internal auditors will be better positioned to provide independent assurance and objective assessments without the pressure of auditing records they previously prepared.

Enhanced Governance & Accountability

The proposed framework is expected to strengthen accountability by empowering internal auditors to challenge management decisions, identify high-risk areas, and support proactive governance and compliance practices.

Rationale Behind the Reform

The reforms are part of Uganda’s broader efforts to modernize the internal audit profession and align local practices with international standards. The government recognizes that internal auditing has evolved into a distinct discipline focused on independent assurance, governance, ethics, and risk oversight.

The current framework under the Public Finance Management Act, 2015 has increasingly been viewed as insufficient for supporting modern internal audit functions, particularly where professionals are expected to perform dual roles as both financial preparers and reviewers.

Implications for Organizations

Organizations across both the public and private sectors may need to review their governance structures, audit functions, reporting lines, and compliance frameworks in preparation for the anticipated reforms. The separation of audit and accounting responsibilities is expected to improve transparency, reduce conflicts of interest, and strengthen organizational oversight.

The reforms may also increase demand for specialized internal audit professionals with expertise in governance, risk management, compliance, cybersecurity, and operational assurance.

“Independent internal audit functions remain essential for strengthening governance, accountability, and organizational resilience.”