Internal audit competencies : skills requirements for chief audit executives in South Africa

Abstract

The role that internal auditing plays within organisations is changing and the need for competent internal auditors who are able to address this change is also increasing. In South Africa internal auditing is recognised as a ‘scarce skill’ profession. Prior research addressed competencies in various disciplines, general competencies for internal auditors, and the role and function of chief audit executives, but little research has been done on the level of importance of the competencies requirements for the head of the internal audit function. This study aims to expand this knowledge area first by identifying the levels of importance of various competencies as presented in formal professional guidance. Thereafter, these levels are compared with the perceptions of South African and of global internal audit leaders of the importance of these required levels of competencies for chief audit executives. The article concludes that the terminology used in the various guidance documents of the IIA, and in studies performed by the Institute of Internal Auditors are inconsistent and therefore unclear and should be standardised. The majority of internal audit leaders do not have the same perception of the relative importance of the competencies for chief audit executives as those prescribed by the professional guidance. Furthermore, quality-related issues are not addressed effectively in the guidance which reveals significant differences in the levels of importance from those held by the various internal audit leaders. Other areas where significant differences exist are soft skills, areas focussing on the performance of the audit engagement, as well as operational and management research.