Perceived challenges faced by the internal audit function in the South African public sector : a case study of The National Treasury

Abstract

This article reports on the challenges faced by the internal audit function in the South African public sector, as perceived by role players other than the internal audit function itself. This study implemented a qualitative research design, using a case study as a research method, in order to achieve the research objective. Semi-structured interviews were conducted to obtain participants’ perceptions of the challenges faced by the internal audit function. Participants were selected based on their capacity to act on the findings and recommendations of the study. Participants selected were senior managers, operational managers, and members of audit committees. The biggest challenges facing the internal audit were identified as the lack of business knowledge; lack of management support; lack of audit action monitoring processes, and external auditors’preference not to rely on the work of the internal audit function. Based on these findings, the authors make recommendations that could benefit the public sector internal audit functions by helping them to better understand the public sector environment and to identify areas for improvement. Finally, the article suggests avenues for further research on the future of the internal audit in the public sector.