Abstract:
The South African public sector faces significant challenges that impact on its
ability to deliver services to the public. There are several parties that can assist
the public sector in addressing these challenges. One of these is the internal
audit functions of government organisations. For internal auditing to support
effectively the managements of the government organisations they serve, the
internal audit function should be sufficiently capable. The questions remain as to
whether South African public sector internal audit functions are sufficiently
capable and how internal audit capability can be measured.
The Institute of Internal Auditors Research Foundation published the Internal
Audit Capability Model (IA-CM) in 2009. The main purpose of the model is to
provide a capability self-assessment tool for public sector internal audit functions.
This model could be used as a yardstick in measuring public sector internal audit
capability within South Africa, should the elements and key process areas (KPAs)
of the model be applicable to the South African context. This study therefore aims
to determine whether the IA-CM can be applied within a South African context.
The South African public sector, the role of internal auditing within the South
African public sector as well as the IA-CM as a tool of measuring public sector
internal audit capability were investigated. A literature review was conducted on
these topics, as a foundation for the study.
Specific data was obtained on each of the KPAs of the IA-CM through a case
study design by selecting an appropriate South African national department and
ranking the case against the KPAs of the IA-CM. The ranking was conducted
based on a review of relevant documents and interviews with applicable internal
audit and management staff and audit committee members of the selected case.
The study concludes that 82.9% of the KPAs of the IA-CM appear to be
applicable within a South African context and that, in essence, the model can be
applied within a South African context. However, eight hindrances that may negatively affect the feasibility of implementing the remaining 17.1% of the KPAs
or certain components of these KPA’s, have been also been identified.
