State-owned enterprises are critical vehicles for the delivery of goods and services, and can contribute to the
sustainable economic growth of developing countries. The business environments in which these state-owned
enterprises operate pose risks to the enterprises, which then rely on internal audit, amongst other options, to
managing these risks. The objective of this study was to determine the perceptions of, expectations for and
challenges experienced by internal audit functions in today’s state-owned enterprises. A qualitative research
approach was selected, utilising a case study method, and data was collected through interviews with
important role players associated with the internal audit function of three South African state owned
The findings of the study revealed that internal audit functions are perceived in a positive light and that
participants do place reliance on internal audit. The internal audit functions act as business partners to
management, and expect support from the audit committees and management in terms of ensuring the
internal audit functions’ independence, and the provision of required resources and skills. The internal audit
functions face diverse challenges. These relate to the relative novelty of performance auditing and combined
assurance in state-owned enterprises, the differences in methodologies and auditing systems used by
outsourced functions, repeat (negative) audit findings, a lack of business knowledge and insight on the part of
the entity, and non-compliance with quality assurance and improvement Standards.
Schumann, E.F.(Southern African Institute of Government Auditors, 1998)
Very little information is available on the income patterns of individual audit firms in South Africa. There is no statutory requirement for audit firms to disclose any information in respect of its own activities. This ...
Gloeck, Juergen D. (Juergen Dieter), 1956-; De Jager, Herman(School of Accounting Sciences, University of Pretoria, 1993)
The audit expectation gap has been the subject of many research projects in overseas countries. Recommendations and strategies for narrowing the gap in these countries have been based on empirical data. In the Republic of ...
Mamotheti, Sethopo Michael(University of Pretoria, 2012-09-21)
The purpose of this study was to indentify collective skills and background that audit committee members must have in order to be effective. In addition, the study examined the extent of prevalence of each skill indentified, ...