Purpose The purpose of this study is to determine the differences in perception of the key stakeholders on the drivers of internal audit effectiveness, namely, senior management and the audit committee, in relation to identified measures. To be seen as an effective internal audit function, value needs to be added for both these stakeholders. It is thus important for internal auditing to obtain an understanding of what these stakeholders respectively perceive as the most prominent drivers of internal audit effectiveness. Design/methodology/approach Heads of internal audit functions (providing insight into the drivers), chairpersons of audit committees and senior management (providing insight into the measures) within the South African public sector responded to a survey. The data were subjected to an exploratory factor analysis and principal component analysis to reduce the set of items and to provide continuous scores for use in a multivariate multiple regression analyses. Findings Senior management and the audit committee differ in their level or order of prominence of the identified drivers that influence the identified measures of internal audit effectiveness. No statistical similarities in their level of views could be found. Originality/value To enhance the effectiveness of internal auditing, the internal audit functions should take cognisance of the difference in perceptions of its key stakeholders on the drivers of internal audit effectiveness, in relation to identified measures, to manage these relationships. No previous research could find that statistically compared views of senior management and the audit committee regarding the drivers of internal audit effectiveness.

The role of internal auditing in assisting with the mitigation of key risks threatening organisations has increased, not least, for example, in ensuring that engagements are performed more effectively and efficiently, and that all the key risks of organisations are addressed, but also to ensure that scarce internal audit resources are used optimally. This article describes the development of a model that can be used by internal auditors to perform this task. The model was developed from a study of the academic literature, current business practice norms, and other documentation whereafter it was tested in a practical scenario, and input from heads of internal audit departments in prominent South African organisations was obtained. The findings of the study, inter alia, support the use of the model. However, a concern is that the risk management strategy currently implemented by organisations is not mature enough for internal auditing to rely on the outcome of the risk management process, a prerequisite for the model to function optimally. A second concern is that internal auditing is reluctant to use a pure risk-based approach when performing audit engagements and still prefers to use a control-based approach with more emphasis placed on high risk areas.

Purpose The purpose of this paper is to determine the empirical relationships that exist between two of the elements of a sound internal control system, namely internal control activities and managerial conduct, and the perceived sustainability of South African small, medium and micro enterprises (SMMEs). Design/methodology/approach Data were obtained from management and employees of 100 South African SMMEs operating in the Fast Moving Consumer Goods industry. All participants were interviewed by means of face-to-face structured interviews due to the complexity of the questions posed. Findings Only general management competencies have a relationship with the economic sustainability of these business entities. The rejection of three of the four hypotheses supports the current poor sustainability rate with approximately 75 per cent of South African SMMEs having to close their doors after being in operation for only three years. Originality/value As this study is the first of its kind for SMMEs, and although limited relationships were identified, it is crucial for management of SMMEs as well as government bodies that have an influence sphere over these entities, to ensure that SMME management incorporate crucial internal control activities and appropriate management conduct in their businesses.

The effectiveness of the internal audit function is important to improve performance in the public sector. This study provides insight into the drivers and measures of internal audit effectiveness.The heads of the internal audit function, senior management of public institutions and chairpersons of the audit committee, within a South African public sector context, responded to a survey based on an extensive review of the internal audit function. Exploratory factor analysis was applied to facilitate the reduction of 92 items into a meaningful number of independent (drivers) and dependent (measures) variables. The result of the study identifies a refined list of drivers and measures of internal audit effectiveness that adds to existing knowledge and presents a foundation for further research. KEYWORDSExploratory factor analysis, internal audit demand-side, internal audit effectiveness, internal audit supply-side, public sector

The Certified Internal Auditor (CIA) programme is the formal globally recognised test of competence for internal auditors. However, the question is raised whether this assessment of competence has kept up with the changing demands of modern internal auditing, taking into account the fact that demands may differ from one country or region to the next. The fact that Australia, the UK & Ireland and South Africa require qualifications in addition to those of the CIA programme may be attributed to a need for a different level of competence in comparison with the Rest of the World. The objective of the study was to determine whether differences exist between the respective competency level needs for internal auditors from South Africa, the UK and Ireland, Australia and the Rest of the World. Data from the Institute of Internal Auditors’ (IIA’s) latest global Common Body of Knowledge (CBOK) study was used to determine and statistically analyse the perceived levels of importance of general competencies, technical skills and behavioural skills needed by internal auditors. The results indicated that globally internal auditors have similar perceptions of what competencies are most important for internal auditors, but the levels of importance differ among the regions. South Africa demanded a higher level of competence and aligned closely with the UK and Ireland, which could explain why South Africa now needs a customised competency assessment. Australia consistently indicated different perceptions of the levels of importance of competencies, which could explain Australia’s need for a country-specific internal audit competency assessment. Hence one size may not fit all.