The adequacy, use and compliance with internal auditing standards – South African perceptions in comparison with other specific regions

Abstract

This article focusses on determining the adequacy of the International Standards for the Professional Practice of Internal Auditing (Standards) for use in South Africa, as well as examining how local entities comply with the Standards as compared to those in other specific regions, from both emerging economies and developed economies. Data used in this article’s analysis, interpretation, and comparisons comes from the USA-based Institute of Internal Auditors Research Foundation’s Common Body of Knowledge questionnaire respondents database. Findings indicated that the Standards provide adequate guidance to internal auditors, with South African respondents providing the highest rating. South African respondents also indicated that their organisations have the highest rate of compliance with the Standards, compared to those of other specific regions. Reasons for and theories explaining the non-compliance with the Standards are discussed. The findings of the study can be valuable to internal auditors in other emerging economies (as they shed light on possible reasons for non-compliance with the Standards), as well as for internal audit researchers as a basis for further research.