A framework for the strategic alignment of internal auditing in the public sector
- Authors: Nyenyiso, Sizwe
- Date: 2024-04
- Subjects: Auditing, Internal , Auditing , Accounting
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10948/65368 , vital:74095
- Description: The role of internal auditing has evolved from a control-based function to a strategic partner of strategy formulation and execution. In today’s fast paced business environment, the demand for internal audit (IA) services has increased enormously as management struggles to respond to disruptions. To maximise the IA value and effectively respond to the expectations of stakeholders, the internal audit functions (IAFs) must be properly aligned with the strategic direction of their organisations. Public sector IAFs must align their work with the strategies, objectives and risks of the public sector organisations and promote organisational improvement. Failure to strategically align the IAFs may lead to the non-delivery of their mandate, and thus be unable to assure, advise and provide the insights that inform strategic decision making. It is concerning that the public sector IAFs may not be adequately aligned to the strategic direction of their organisations, and that no mechanism is in place to enable this alignment. Hence the primary objective of this study to develop a framework for aligning public sector IAFs with the strategic direction of the South African public sector organisations. The secondary objectives were to investigate factors that impact on IA alignment with the strategies of the public sector organisations; and how these can be integrated into the IA strategic alignment framework. This qualitative Delphi study used a combination of the Agency Theory and Strategic Alignment Theory (SAT) to better understand the phenomenon of IA strategic alignment. An iterative process of three Delphi rounds was followed to facilitate consensus among participants, who were selected using a purposive sampling method. This culminated in the development of IA strategic alignment framework, encompassing five components: organisational context; IA governance; IA planning approach; IA processes and IA resourcing, as well as 48 factors (35 positive and 13 negative) of IA strategic alignment. The study also found 15 benefits of IA strategic alignment (eight benefits to the organisation and seven to the IAF). , Thesis (PhD) -- Faculty of Business and Economic Sciences, School of Accounting, 2024
- Full Text:
- Date Issued: 2024-04
- Authors: Nyenyiso, Sizwe
- Date: 2024-04
- Subjects: Auditing, Internal , Auditing , Accounting
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10948/65368 , vital:74095
- Description: The role of internal auditing has evolved from a control-based function to a strategic partner of strategy formulation and execution. In today’s fast paced business environment, the demand for internal audit (IA) services has increased enormously as management struggles to respond to disruptions. To maximise the IA value and effectively respond to the expectations of stakeholders, the internal audit functions (IAFs) must be properly aligned with the strategic direction of their organisations. Public sector IAFs must align their work with the strategies, objectives and risks of the public sector organisations and promote organisational improvement. Failure to strategically align the IAFs may lead to the non-delivery of their mandate, and thus be unable to assure, advise and provide the insights that inform strategic decision making. It is concerning that the public sector IAFs may not be adequately aligned to the strategic direction of their organisations, and that no mechanism is in place to enable this alignment. Hence the primary objective of this study to develop a framework for aligning public sector IAFs with the strategic direction of the South African public sector organisations. The secondary objectives were to investigate factors that impact on IA alignment with the strategies of the public sector organisations; and how these can be integrated into the IA strategic alignment framework. This qualitative Delphi study used a combination of the Agency Theory and Strategic Alignment Theory (SAT) to better understand the phenomenon of IA strategic alignment. An iterative process of three Delphi rounds was followed to facilitate consensus among participants, who were selected using a purposive sampling method. This culminated in the development of IA strategic alignment framework, encompassing five components: organisational context; IA governance; IA planning approach; IA processes and IA resourcing, as well as 48 factors (35 positive and 13 negative) of IA strategic alignment. The study also found 15 benefits of IA strategic alignment (eight benefits to the organisation and seven to the IAF). , Thesis (PhD) -- Faculty of Business and Economic Sciences, School of Accounting, 2024
- Full Text:
- Date Issued: 2024-04
A fraud investigation skills self-assessment framework for internal audit practitioners
- Authors: Labuschagne, Mario
- Date: 2023-04
- Subjects: fraud investigation , Auditing, Internal
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/61465 , vital:70660
- Description: Globally incidents of fraud are on the increase, resulting in an expectation from users of internal audit services that internal auditors should accept responsibility for conducting fraud investigations. This expectation exists even though limited guidance pronouncements on how to conduct fraud investigations being available from the Institute of internal auditors (IIA) and internal auditors not always being equipped to conduct fraud investigations. This expectation also stretches beyond the current pronounced role and responsibilities of internal audit practitioners, according to the IIAs International Professional Practices Framework (IPPF) (hereafter, referred to as the Standards). Conducting fraud investigations without possessing the relevant knowledge and skills, introduces the risk that evidence collected may be considered inadmissible in a court of law. The research problem is stated as, “a dearth of adequate guidance pronouncements for internal audit practitioners exists, in respect of fraud investigations.” In response to the expectation, risk, and research problem, underpinned by the policeman theory and theory of inspired confidence, the primary research objective of the study was to develop a fraud investigation proficiency self-assessment framework for use by internal audit practitioners who are expected to conduct fraud investigations. The study’s research objectives were achieved by making use of an interpretivist research paradigm and a qualitative methodological approach. Data were collected through semi-structured interviews from authoritative internal auditors on the membership database of the Institute of Internal Auditors South Africa (IIASA). Findings confirmed the existence of an expectation gap and the lack of guidance contained in IIA guidance pronouncements and Standards. Developed from the findings, the thesis proposes a fraud investigation proficiency self-assessment framework. The proposed self-assessment framework lists 14 fraud investigation knowledge and skills measures in the form of statements that internal audit practitioners should use to assess their personal level of proficiency for conducting a fraud investigation. The results from the self-assessment should then be Page | vii used to guide an internal audit practitioner on whether to accept the responsibility for conducting a fraud investigation or to defer the investigation to a more proficient fraud investigator. The decision for accepting the responsibility to conduct a fraud investigation ultimately resides with the internal audit practitioner. The study concluded that an expectation from organisations exists for internal audit practitioners to conduct fraud investigations, even though limited guidance pronouncements are available to internal audit practitioners from the IIA for conducting fraud investigations. The study identified that the most prominent risk associated with a fraud investigation being conducted by a person lacking the required fraud investigation knowledge and skills was that of collected evidence being dismissed in a court of law and not being able to use the evidence against a perpetrator. It can, therefore, be recommended that internal audit practitioners should not conduct a fraud investigation if they lacked any of the proficiencies required. The study provides support for the development and use of the proposed fraud investigation proficiency self-assessment framework. , Thesis (PhD) -- Faculty of Faculty of Business and Economic Sciences, 2023
- Full Text:
- Date Issued: 2023-04
- Authors: Labuschagne, Mario
- Date: 2023-04
- Subjects: fraud investigation , Auditing, Internal
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/61465 , vital:70660
- Description: Globally incidents of fraud are on the increase, resulting in an expectation from users of internal audit services that internal auditors should accept responsibility for conducting fraud investigations. This expectation exists even though limited guidance pronouncements on how to conduct fraud investigations being available from the Institute of internal auditors (IIA) and internal auditors not always being equipped to conduct fraud investigations. This expectation also stretches beyond the current pronounced role and responsibilities of internal audit practitioners, according to the IIAs International Professional Practices Framework (IPPF) (hereafter, referred to as the Standards). Conducting fraud investigations without possessing the relevant knowledge and skills, introduces the risk that evidence collected may be considered inadmissible in a court of law. The research problem is stated as, “a dearth of adequate guidance pronouncements for internal audit practitioners exists, in respect of fraud investigations.” In response to the expectation, risk, and research problem, underpinned by the policeman theory and theory of inspired confidence, the primary research objective of the study was to develop a fraud investigation proficiency self-assessment framework for use by internal audit practitioners who are expected to conduct fraud investigations. The study’s research objectives were achieved by making use of an interpretivist research paradigm and a qualitative methodological approach. Data were collected through semi-structured interviews from authoritative internal auditors on the membership database of the Institute of Internal Auditors South Africa (IIASA). Findings confirmed the existence of an expectation gap and the lack of guidance contained in IIA guidance pronouncements and Standards. Developed from the findings, the thesis proposes a fraud investigation proficiency self-assessment framework. The proposed self-assessment framework lists 14 fraud investigation knowledge and skills measures in the form of statements that internal audit practitioners should use to assess their personal level of proficiency for conducting a fraud investigation. The results from the self-assessment should then be Page | vii used to guide an internal audit practitioner on whether to accept the responsibility for conducting a fraud investigation or to defer the investigation to a more proficient fraud investigator. The decision for accepting the responsibility to conduct a fraud investigation ultimately resides with the internal audit practitioner. The study concluded that an expectation from organisations exists for internal audit practitioners to conduct fraud investigations, even though limited guidance pronouncements are available to internal audit practitioners from the IIA for conducting fraud investigations. The study identified that the most prominent risk associated with a fraud investigation being conducted by a person lacking the required fraud investigation knowledge and skills was that of collected evidence being dismissed in a court of law and not being able to use the evidence against a perpetrator. It can, therefore, be recommended that internal audit practitioners should not conduct a fraud investigation if they lacked any of the proficiencies required. The study provides support for the development and use of the proposed fraud investigation proficiency self-assessment framework. , Thesis (PhD) -- Faculty of Faculty of Business and Economic Sciences, 2023
- Full Text:
- Date Issued: 2023-04
Internal auditors perceptions of the impact of control elements on internal control systems
- Authors: Ackerman, Christo
- Date: 2011
- Subjects: Auditing, Internal , Financial statements , Controllership
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:8952 , http://hdl.handle.net/10948/d1008158 , Auditing, Internal , Financial statements , Controllership
- Description: The objective of this research report was to determine which internal controls are perceived, by internal auditors, to be contributing to the effectiveness of an internal control structure. The Committee for Sponsoring Organisations (COSO) integrated internal control framework was used as a basis for the questionnaire construction and respondents were asked to rate the perceived control effectiveness of each of the components of internal control. Descriptive statistics were used to analyse the basic meaning of the data. The questionnaire was completed by following a Uniform Resource Locator (URL) which was sent to two internal auditors in audit firms. Thirty one responses were obtained; all the respondents have experience in the evaluation and assessment of internal control systems. This research showed that control elements as outlined in COSOs integrated internal control framework, if implemented, could contribute to the effectiveness of the internal control system.
- Full Text:
- Date Issued: 2011
- Authors: Ackerman, Christo
- Date: 2011
- Subjects: Auditing, Internal , Financial statements , Controllership
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: vital:8952 , http://hdl.handle.net/10948/d1008158 , Auditing, Internal , Financial statements , Controllership
- Description: The objective of this research report was to determine which internal controls are perceived, by internal auditors, to be contributing to the effectiveness of an internal control structure. The Committee for Sponsoring Organisations (COSO) integrated internal control framework was used as a basis for the questionnaire construction and respondents were asked to rate the perceived control effectiveness of each of the components of internal control. Descriptive statistics were used to analyse the basic meaning of the data. The questionnaire was completed by following a Uniform Resource Locator (URL) which was sent to two internal auditors in audit firms. Thirty one responses were obtained; all the respondents have experience in the evaluation and assessment of internal control systems. This research showed that control elements as outlined in COSOs integrated internal control framework, if implemented, could contribute to the effectiveness of the internal control system.
- Full Text:
- Date Issued: 2011
The use of lean tools to increase productivity and improve efficiency in Port Elizabeth Enforcement Audit
- Authors: Bantom, Phumeza Patience
- Date: 2011
- Subjects: Lean manufacturing , Quality control -- Auditing , Waste minimization , Auditing, Internal
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8645 , http://hdl.handle.net/10948/d1008159 , Lean manufacturing , Quality control -- Auditing , Waste minimization , Auditing, Internal
- Description: Lean philosophy is based on the continuous quest to improve the organisation‟s processes by creating a culture and operating principles which eliminate all non value adding activities within organisation„s processes. Manufacturing firms consider the adoption of the Lean tools as basic requirements for achieving World Class operational excellence or Best Practice. For some time, lean has been used by the manufacturing organizations. Most organizations understand that lean will help them survive global competition and stay in business. The objective of this study is to investigate how lean manufacturing tools can be used to improve efficiency and enhance the embedding of a continuous improvement culture in the South African Revenue Service Enforcement Audit Port Elizabeth. The activities that took place in Enforcement Audit Port Elizabeth from September 2010 until 31 October 2011 were observed. During the study, an introductory presentation by the researcher was made to Regional Enforcement Management and staff in general, the presentation was to introduce the study highlighting different Lean tools. Thereafter the Port Elizabeth audit staff members were engaged formally, using surveys to assess their underlying mindset and behaviour as well as informally, using unstructured interviews to solicit more information on activities taking place and the reasoning behind certain actions. The results of the survey and observations are analysed and interpreted.
- Full Text:
- Date Issued: 2011
- Authors: Bantom, Phumeza Patience
- Date: 2011
- Subjects: Lean manufacturing , Quality control -- Auditing , Waste minimization , Auditing, Internal
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:8645 , http://hdl.handle.net/10948/d1008159 , Lean manufacturing , Quality control -- Auditing , Waste minimization , Auditing, Internal
- Description: Lean philosophy is based on the continuous quest to improve the organisation‟s processes by creating a culture and operating principles which eliminate all non value adding activities within organisation„s processes. Manufacturing firms consider the adoption of the Lean tools as basic requirements for achieving World Class operational excellence or Best Practice. For some time, lean has been used by the manufacturing organizations. Most organizations understand that lean will help them survive global competition and stay in business. The objective of this study is to investigate how lean manufacturing tools can be used to improve efficiency and enhance the embedding of a continuous improvement culture in the South African Revenue Service Enforcement Audit Port Elizabeth. The activities that took place in Enforcement Audit Port Elizabeth from September 2010 until 31 October 2011 were observed. During the study, an introductory presentation by the researcher was made to Regional Enforcement Management and staff in general, the presentation was to introduce the study highlighting different Lean tools. Thereafter the Port Elizabeth audit staff members were engaged formally, using surveys to assess their underlying mindset and behaviour as well as informally, using unstructured interviews to solicit more information on activities taking place and the reasoning behind certain actions. The results of the survey and observations are analysed and interpreted.
- Full Text:
- Date Issued: 2011
Restoring trust by verifying information integrity through continuous auditing
- Authors: Flowerday, Stephen
- Date: 2006
- Subjects: Auditing, Internal , Corporate governance
- Language: English
- Type: Thesis , Doctoral , DTech
- Identifier: vital:9796 , http://hdl.handle.net/10948/504 , http://hdl.handle.net/10948/d1011920 , Auditing, Internal , Corporate governance
- Description: Corporate scandals such as Enron, WorldCom and Parmalat, have focused recent governance efforts in the domain of financial reporting due to fraudulent and/or erroneous accounting practices. In addition, the ineffectiveness of the current system of controls has been highlighted, including that some directors have been weak and ineffective monitors of managers. This board of director ‘weakness’ has called for additional mechanisms for monitoring and controlling of management, focusing on financial reporting. This problem intensifies in that today companies function in real-time, and decisions are based on available realtime financial information. However, the assurances provided by traditional auditing take place months after the transactions have occurred and therefore, a trust problem arises because information is not verified in real-time. Consequently, the errors and fraud concealed within the financial information is not discovered until months later. To address this trust problem a conceptual causal model is proposed in this study based on the principles of systems theory. The emergent property of the causal model is increased trust and control. This study establishes that mutual assurances assist in building trust and that information security assists in safeguarding trust. Subsequently, in order to have a positive relationship between the company directors and various stakeholders, uncertainty needs to be contained, and the level of trust needs to surpass the perceived risks. The study concludes that assurances need to be provided in real-time to restore stakeholder confidence and trust in the domain of financial reporting. In order to provide assurances in real-time, continuous auditing is required to verify the integrity of financial information when it becomes available, and not months later. A continuous auditing process has its foundations grounded in information technology and attends to the challenges in real-time by addressing the standardisation of data to enable effective analysis, the validation of the accuracy of the data and the reliability of the system.
- Full Text:
- Date Issued: 2006
- Authors: Flowerday, Stephen
- Date: 2006
- Subjects: Auditing, Internal , Corporate governance
- Language: English
- Type: Thesis , Doctoral , DTech
- Identifier: vital:9796 , http://hdl.handle.net/10948/504 , http://hdl.handle.net/10948/d1011920 , Auditing, Internal , Corporate governance
- Description: Corporate scandals such as Enron, WorldCom and Parmalat, have focused recent governance efforts in the domain of financial reporting due to fraudulent and/or erroneous accounting practices. In addition, the ineffectiveness of the current system of controls has been highlighted, including that some directors have been weak and ineffective monitors of managers. This board of director ‘weakness’ has called for additional mechanisms for monitoring and controlling of management, focusing on financial reporting. This problem intensifies in that today companies function in real-time, and decisions are based on available realtime financial information. However, the assurances provided by traditional auditing take place months after the transactions have occurred and therefore, a trust problem arises because information is not verified in real-time. Consequently, the errors and fraud concealed within the financial information is not discovered until months later. To address this trust problem a conceptual causal model is proposed in this study based on the principles of systems theory. The emergent property of the causal model is increased trust and control. This study establishes that mutual assurances assist in building trust and that information security assists in safeguarding trust. Subsequently, in order to have a positive relationship between the company directors and various stakeholders, uncertainty needs to be contained, and the level of trust needs to surpass the perceived risks. The study concludes that assurances need to be provided in real-time to restore stakeholder confidence and trust in the domain of financial reporting. In order to provide assurances in real-time, continuous auditing is required to verify the integrity of financial information when it becomes available, and not months later. A continuous auditing process has its foundations grounded in information technology and attends to the challenges in real-time by addressing the standardisation of data to enable effective analysis, the validation of the accuracy of the data and the reliability of the system.
- Full Text:
- Date Issued: 2006
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