Faculty of Economic and Management Sciences
School of Financial Sciences
Department of Auditing
Selected Highlights from Research Findings
In a research project, sponsored by KPMG and the Institute of Internal Auditors, South Africa (IIA SA) to determine the current status of and demand for internal auditing in South Africa, it was found that research done on the practice of internal auditing in South Africa is limited in its extent. The lack of research is partly due to the fact that, as an academic discipline, internal auditing is still in its infancy and is therefore still a relatively unexplored research area. The main reason for undertaking this study was to address the research vacuum. This study builds on the global survey that was conducted by the Institute of Internal Auditors Research Foundation (IIARF) in 2006 to establish the common body of knowledge (CBOK) of the internal auditing profession. The current project extends the CBOK study to the extent that it elicits the views and perceptions of both the chief audit executives (CAEs) and the users of internal audit services. The users include the chairpersons of audit committees (CACs) and chief executive officers (CEOs), chief financial officers (CFOs) or chief operating officers (COOs) of listed companies in South Africa that have the largest market capitalisation. The researchers obtained data on the profiles of the CAEs of the internal audit activities (IAAs) and analysed the perceptions of the stakeholders of the functions and activities of the IIA SA, the views of the stakeholders on the composition of the IAAs’ staff complement and their perceptions of the demand for the services of the IAAs. Furthermore, they analysed the perceptions of the stakeholders of the IAAs’ structure, status and activities, the perceptions of the stakeholders of the IAAs’ role with regard to corporate governance and fraud, and the perceptions of the stakeholders of the IAAs’ role in respect of risk assessment and risk management. The views and perceptions of the stakeholders were obtained by means of three structured questionnaires. One questionnaire was developed for completion by the CAE, a second for completion by the CAC and a third for completion by the CEO, CFO or COO. These questionnaires were developed and finalised after extensive literature reviews had been undertaken, discussions with stakeholders held and pilot testing done in South Africa. The study found that the IAAs have a relatively high status. The high status applies especially to in-house IAAs. It is also found that there is a demand for highly skilled internal auditors, especially female internal auditors from previously disadvantaged groups
Contact person: Mev GP Coetzee.
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