ABSTRACT The general objective of the study was to find out the impact of audit quality on the performance of Financial institutions in Makindye Division using a case study Centenary bank, Kabalagala branch and the specific objectives were;to establish the effect of competence on the performance of financial institutions in Makindye division ,to determine the effects of independence on the performance of financial institutions in Makindye division and to determine the effect of integrity on the performance of Financial institutions in Makindye division. The study used a survey research design and data was collected using a questionnaire from 28 respondents. The findings of the study showed that competence in auditing affects the performance of financial institutions as respondents agreed with most of the statements used to measure this objective except that most of them revealed that there are no measures to ensure competence in auditing in the institution. The findings of the study revealed that independence in auditing affects the performance of financial institutions ifwell implemented. The study further revealed that auditors are not independent from other parties as this greatly affects the auditing system at the institutions. Furthermore, the findings of the study revealed that integrity in auditing greatly improves the performance of financial institutions and it was also found out that integrity is not trained at this branch. The study recommended that; the management should put measures to ensure competence in auditing as it affects the audit quality since 75% of the respondents agreed that there are no measures to ensure competence in auditing, the management should ensure that both internal and external auditors are not interfered by any party as 87.2% of the respondents revealed that auditors are not independent, the institution should put more emphasis on trainings about integrity since it affects the audit quality and the performance in general as 75% of the respondents agreed that integrity is not generally trained at this branch.