Can the Internal Audit Capability Model be applied globally : a South African case study?

Abstract

The public sector faces significant challenges that impact on its service delivery abilities. Several bodies exist that can assist the public sector in addressing these challenges. One of these is the internal audit functions (IAFs) of government organisations. For internal auditing to effectively support management, the IAF should be competent to perform the function. The Institute of Internal Auditors Research Foundation published the Internal Audit Capability Model (IA-CM) in 2009 to provide a capability self-assessment tool for public sector IAFs. This model could be used to measure public sector internal audit capability within South Africa, should the key process areas (KPAs) of the model be applicable. This study, therefore, aims to determine whether the IA-CM can be applied within a South African context. A case study design was used 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 documentary review and interviews with the relevant officials involved in the case. The study concludes that 82,9% of the KPAs of the IA-CM appear to be applicable 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, have been also been identified.