Despite South Africa being considered a developing country, internal auditing has developed a robust presence
both in the private and public sectors. The CBOK research (conducted by the IIA’s IIARF) shows that local
internal audit functions compare well with other more developed regions around the world. A factor that has
contributed to the strength of South African internal auditing is the support contained in legislation and private
sector codes of corporate governance: the Public Finance Management Act (PFMA) and the Municipal Finance
Management Act (MFMA) continue to underpin public sector advances, while the King ll and King lll reports, with
their codes of corporate governance, apply to all sectors in South Africa. All of this has placed South Africa’s
internal audit functions collectively in a leadership role in Africa.