Faculty of Economic and Management Sciences
School of Financial Sciences
Department of Auditing
Selected Highlights from Research Findings
The departments of Auditing at the University of South Africa (Unisa), University of Pretoria and the Tshwane University of Technology, in conjunction with the Bureau of Market Research (BMR) at Unisa, completed the first phase of a research project to establish the standing of and demand for internal auditing in South Africa. The project was funded by the Institute of Internal Auditors in South Africa (IIA (SA)) and KPMG. The final report was launched on 28 February 2010 at the Leadership Forum of the IIA (SA).
The study involved survey research to assess the views and perceptions of stakeholders. One questionnaire was developed for completion by the chief audit executive by means of a web-based questionnaire, a second for completion by the chair of the audit committee by means of a personal interview, and a third for completion by the chief executive (either the chief executive officer, chief financial officer or chief operating officer) by means of a personal interview. The first phase of the project focused on the private sector, sampling 30 of the top 40 companies listed on the Johannesburg Stock Exchange.
The research resulted in a number of insights about stakeholder views of the internal audit function. A perceived quality internal audit function is likely to correlate with the soundness of the organisation's corporate governance structure. Both the audit committee chairs and the chief executives indicated that they perceived the contributions made to the organisation by the in-house internal audit function as being greater than that made by the outsourced function. The research also revealed contradictions between how the audit committee chair, on the one hand, and the chief executive, on the other hand, perceive certain factors. For example, there were significant differences in the responses of the two parties with respect to the reporting lines of the head of internal auditing and the presence or absence of a board risk committee.
The final report was accepted with great enthusiasm by the leaders in the profession. The researchers have also submitted a research report to the IIA Research Foundation in the USA to be published as a formula research report that could be accredited by the Department of Education. The full report is available from the IIA (SA) website, as well as from the Department of Auditing at the University of Pretoria. The second phase of the research will commence shortly with a focus on the public sector.
Contact person: Mev GP Coetzee.
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