Abstract:
In 2009 government set out to achieve clean audits for all government entities. Studies on internal audit
effectiveness reveal that an effective internal audit function enhances organisational governance and is
considered a significant governance mechanism in the public sector. Since a clean audit is a function of clean
governance, an effective internal audit function as a governance mechanism contributes thereto. Limited
published research is available on internal audit effectiveness at the South African local sphere of government.
This study, which adopted the qualitative approach, investigates the four micro factors which affect internal audit
effectiveness of municipalities in the Vhembe district, situated in the Limpopo province in South Africa. The study
reveals that there are internal audit resource restrictions, no quality assurance, enhancement programmes and
no external quality assurance. The participants held mixed perceptions of the effectiveness of internal audit
functions. All internal auditors do not have professional qualifications, consequently, a low status. Management
does not comprehend the challenges experienced by internal auditors. The study identifies areas for future
research taking into account perceptions of internal audit resources, processes, relationships and the
organisation.
