The Institute of Internal Auditors is in the process of developing new standards for the internal auditing profession. The first set of these standards will be implemented with…
Abstract
The Institute of Internal Auditors is in the process of developing new standards for the internal auditing profession. The first set of these standards will be implemented with effect from 1 January 2002. The purpose of professional standards is to lay down the minimum requirements to be maintained for acceptable practice. In June 1999, a new formal definition of internal auditing was adopted to address relevant issues with which internal auditing is currently faced. Existing standards, when read in conjunction with the new definition, have deficiencies and these deficiencies have led to the development of new standards for the profession. The purpose of this article is to discuss the limitations of the current standards, to identify the changes incorporated in the new standards, and to evaluate the changes. The article evaluates whether the new standards address the changes in the new definition and highlights the influence of the changes in the standards on the internal auditing profession. The findings are that the new standards are difficult to analyse, especially because the current standards must still be used in conjunction with the new standards, yet the changes successfully address the challenges facing the internal auditing profession.
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Michail Nerantzidis, Michail Pazarskis, George Drogalas and Stergios Galanis
This study reviews post-2009 literature on public sector internal auditing (IA) and addresses three interrelated research questions (RQ): How is research on the public sector IA…
Abstract
Purpose
This study reviews post-2009 literature on public sector internal auditing (IA) and addresses three interrelated research questions (RQ): How is research on the public sector IA being developed? What are the focus and criticisms of the literature on public sector IA? What is the future of public sector IA research?
Design/methodology/approach
We adopt a systematic literature review approach and analyze 78 peer-reviewed journal articles published between 2010 and 2019. We evaluate five criteria to identify the development of public sector IA research (RQ1), namely level of government, academic discipline, number of countries, geographic areas and MSCI country classification. Similarly, we use four criteria to present the focus and criticisms of the literature (RQ2), namely, type of organizational respondent, research instrument, theories and research theme examined. Finally, we use two criteria to propose new directions for future research (RQ3), namely, the directions resulted from RQ1 and RQ2 and the directions highlighted by the 10 most cited studies in the IA literature (i.e. out of the 78 papers identified).
Findings
We find an increase of publications up to 2017, most of which are single country–focused, particularly on emerging markets. Moreover, we note that IA has been studied at all government levels, most often at the local government level. Although we identify multiple research themes examined in the literature, most studies emphasize “governance” and “operational effectiveness” using quantitative analysis, without reference to any theory. By analyzing these key features, we critically interpret the challenges as well as the skepticism that may surface by researchers. Finally, considering implications from this stream of research and analyzing the most influential studies, we recommend new avenues for investigation such as comparative studies among countries and different markets that provide further evidence on the international and regional levels and studies on the effect of cultural, institutional and demographical characteristics in IA.
Practical implications
Our results will help researchers, practitioners and consultants to identify the key issues related with IA.
Originality/value
This study is the first to provide a systematic literature review on public sector IA. Furthermore, it develops insights, critical reflections and avenues for future research in this field.
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There is a widening gap between the expectations of internal audit stakeholders and the value the function brings to the table, for example, in the management of the risks…
Abstract
Purpose
There is a widening gap between the expectations of internal audit stakeholders and the value the function brings to the table, for example, in the management of the risks threatening an organisation. The purpose of this paper is to investigate the views of chief audit executives (CAEs), the chairs of audit committees and senior management on the contribution of the internal audit functions to risk management in the South African public sector. This contribution is considered in the context of existing risk management structures and the level of coordination between these structures and internal auditing.
Design/methodology/approach
The views of heads of internal auditing, chairpersons of the audit committee and the Accounting Officer (similar to the CEO of private sector organisations) of national, provincial and local government organisations were obtained and statistically analysed.
Findings
The results indicate that the CAEs have noticeably different views from the other two parties, and that the existence of risk management structures has a minor effect on how the contribution of internal auditing to risk management is perceived.
Research limitations/implications
It was decided to not include the views of heads of risk management functions owing to the immaturity of risk management in this sector with in the South African public sector.
Practical implications
The results of the study provide internal auditing with information on narrowing the possible gap between the perceptions of senior management and their own perceptions. Senior management could streamline the efforts of these two parties in mitigating the key risk of the organisation. The audit committee, as the independent overseer of internal auditing, will obtain information on whether internal auditing contributes to risk management, and if not, how to address these issues, taking into account the existence (or a lack thereof) of risk management structures. The legislator and regulator of public sector could be influenced to provide clearer guidance or rules in this regard in order to enhance the efficiency and effectiveness of risk management policies and practices.
Originality/value
Limited studies have been conducted regarding the coordination of internal auditing and risk management in mitigating the key risks; especially within the public sector domain whether the existence of risk management structures would affect this coordination. Also the views of senior management, as the key stakeholder of internal auditing, on this matter have not yet been solicited.
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Philna Coetzee, Houdini Fourie and Pricilla A Burnaby
The purpose of this paper is to investigate whether the internal audit quality was maintained in relation to the rapid growth in Institute of Internal Auditors (IIA) membership in…
Abstract
Purpose
The purpose of this paper is to investigate whether the internal audit quality was maintained in relation to the rapid growth in Institute of Internal Auditors (IIA) membership in South Africa. As The IIA in South Africa (SA) has seen more than double the membership growth (59 per cent) than the IIA (25 per cent) over the period 2006 to 2010, the change in internal audit quality indicators for these two are compared.
Design/methodology/approach
The responses from SA respondents and all “Other” respondents are analysed from the 2006 and 2010 Common Body of Knowledge studies on specific questions addressing internal audit quality, to determine whether there is a growth in quality-related indicators and whether the growth is in relation to the membership growth. The chi-square test is used to look for change in response frequencies.
Findings
The paper finds that the SA respondents have a greater increase of internal audit quality indicators than “Other” respondents, suggesting that the increase in membership could also result in improved internal audit quality.
Originality/value
This study links the increase in membership with improved internal audit quality. This could assist the IIA in determining the feasibility of developing key indicators of internal audit quality. The IIA-SA will obtain an understanding whether the exceptional growth in membership is in line with the internal audit excellence as prescribed by SA guidance and legislation. Last, individual internal audit activities could benchmark their growth statistics against the SA and “Other” respondents’ growth pattern – both in numbers and quality indicators.
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literature and research internationally indicate a lack of sufficient facilitation of soft skills development in entry-level internal auditors (internal audit graduates upon…
Abstract
Purpose
literature and research internationally indicate a lack of sufficient facilitation of soft skills development in entry-level internal auditors (internal audit graduates upon entering the workplace), although it is essential for entry-level internal auditors to be able to apply soft skills effectively. The purpose of this paper is to determine the extent to which these international views and findings on soft skills development are evident in South Africa according to practising internal auditors, students and facilitators. Comparisons are also drawn between the perceptions of practising internal auditors, students and facilitators.
Design/methodology/approach
Purposive sampling was used, and data were collected using a structured questionnaire and an interview survey with quantitative analysis.
Findings
In general, the results concur with the literature in terms of the lack of sufficient facilitation and the importance of soft skills development in entry-level internal auditors in South Africa for all three groups. Significant differences were also found between some of the perceptions of practising internal auditors, students and facilitators.
Practical implications
This study benefits internal audit employers, students and facilitators because soft skills are an in-demand graduate attribute and the application of alternative teaching–learning activities to develop students' soft skills also promotes deep learning through student engagement.
Originality/value
The identification of the 21 soft skills categories from the literature, which should be developed in entry-level internal auditors, has not been researched before as well as the perspectives of students and facilitators in South Africa on soft skills development.
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Juliette Senn, Mercedes Luque-Vílchez and Carlos Larrinaga
The purpose of this study is to provide insights into how accounting and accountability systems can contribute to transforming metrics used thus far in research performance…
Abstract
Purpose
The purpose of this study is to provide insights into how accounting and accountability systems can contribute to transforming metrics used thus far in research performance evaluation. New metrics are needed to increase research impact on the challenges addressed by science. In particular, we document and reflect on accounting transformations towards responsible research and innovation (RRI).
Design/methodology/approach
The study draws on the European H2020 MULTI-ACT research project that focuses on the development of a collective research impact framework in the area of health research. We document, analyse and report our engagement in this project, which also included research funders, patient organizations, health researchers, accounting practitioners and health care providers. Drawing on RRI, Mode 2 knowledge production and accounting performativity, we inquire into the potential of accounting technologies to foster knowledge production and increase research impact.
Findings
The study shows how the engagement of accounting with other disciplines enables the development of new and relevant forms of research impact assessment. We document how accounting can be mobilised for the development of new forms of research impact assessment (i.e. indicators that evaluate key accountability dimensions to promote RRI) and how it helps to overcome the difficulties that can emerge during this process. We also show how the design of multiple accountabilities’ indicators, although chronically partial, produced a generative interrogation and discussion about how to translate RRI to research assessment in a workable setting, and the pivotal role of certain circumstances (e.g. the presence of authoritative actors) that appear during the knowledge production process for creating these generative opportunities.
Practical implications
This study illustrates the key role of accounts in the generation of knowledge. It also shows the value of considering the stakes of all affected actors in devising fruitful accounting approaches. This collective perspective is timely in the accounting discipline and could foster the connection between academics and practice which is so far under-reported. This perspective should be useful for policymakers such as the European Union and managers in the design of new policies, initiatives and practices.
Social implications
Discussing and devising appropriate research assessment frameworks is strategic for the maximization of the social impact of research results. Accounting has a key role to play in optimizing a sustainable return on investment in research.
Originality/value
How to assess research impact in a more balanced way is in an early stage of development. The study provides empirical and practical material to advance further work and develop its potential to broaden the conceptualization of accountability.
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Marinda Marais, Priscilla A. Burnaby, Susan Hass, Elmarie Sadler and Houdini Fourie
The purpose of this paper is to compare the responses of South African respondents with all Common Body of Knowledge (CBOK) 2006 respondents in the areas of compliance with the…
Abstract
Purpose
The purpose of this paper is to compare the responses of South African respondents with all Common Body of Knowledge (CBOK) 2006 respondents in the areas of compliance with the Institute of Internal Auditors' (IIA) International Standards for the Professional Practice of Internal Auditing (Standards) and several areas of the internal audit activity's (IAA) operations.
Design/methodology/approach
This paper summarises and discusses the survey results from questionnaires sent to the IIA members as of September 2006. For selected topics, the CBOK 2006 database is compared for South African respondents and non‐South African respondents.
Findings
The paper finds that South Africans have a higher level of compliance with the Standards than those respondents residing in other parts of the world. Since the internal auditing profession is so young in South Africa, compliance with the Standards gives structure and support to the new IAAs and internal auditors.
Originality/value
This is the first study comparing the status of the South African internal auditing profession with the global state of internal auditing, activities performed by internal auditors and the perception of the IAAs in their organizations.
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Melinde Coetzee and Marais Salemon Bester
The purpose of this paper is to explore the association of harmonious work passion with career satisfaction, while probing the mediating role of employees’ psychological career…
Abstract
Purpose
The purpose of this paper is to explore the association of harmonious work passion with career satisfaction, while probing the mediating role of employees’ psychological career resources and career preoccupations as important psychosocial career mechanisms in this association.
Design/methodology/approach
This paper is a cross-sectional quantitative study comprising a sample of (n = 550) employees in various South African organisations.
Findings
The current study found that individuals’ career preferences, career drivers, career harmonisers and career adaptation preoccupations are dynamic mechanisms that regulate the link between harmonious passion and career satisfaction.
Research limitations/implications
The study is located in South Africa and was cross-sectional in design. Generalisation to other occupational contexts and establishing cause-effect relations were not possible.
Practical implications
This paper demonstrates the usefulness of harmonious work passion as an additional positive psychological construct in understanding the psychosocial motivational career mechanisms that drive employees’ career satisfaction. The mediating role of certain psychological career resources (i.e. flexible career preferences, career drivers and career harmonisers) and career adaptation preoccupations in the link between employees’ harmonious passion and career satisfaction need to be considered in career management support practices.
Social implications
This paper demonstrates the growing need to better understand the psychosocial mechanisms that influence employees’ career satisfaction.
Originality/value
The study contributed new insights that extend theory and research on the harmonious work passion phenomenon in relation to important career constructs in the work-career context by means of self-determination theory.
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The purpose of this paper is to assess the level of financial literacy and impact on youth entrepreneurship in South Africa.
Abstract
Purpose
The purpose of this paper is to assess the level of financial literacy and impact on youth entrepreneurship in South Africa.
Design/methodology/approach
The paper used both desk research and questionnaire complemented by interview to assess the level of financial literacy among youth entrepreneurs in the Vhembe District of the Limpopo Province, South Africa.
Findings
The paper reveals that financial literacy among youth entrepreneurs in the Vhembe District appears to be above average and contributes meaningfully to their entrepreneurship skills.
Research limitations/implications
Further research is needed to verify in specific and practical terms, the level and impact of financial literacy on youth entrepreneurs in the Vhembe District.
Practical implications
Education and training at both high school and tertiary levels with emphasis on financial literacy and entrepreneurial skills may have significant implications for small‐, micro‐, and medium‐sized enterprise development and growth for the youth entrepreneur in general in South Africa.
Originality/value
The paper is the first to examine the level of financial literacy among youth entrepreneurs in the Vhembe District. The paper therefore sets an important benchmark for further research in this area.
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Scheingold's The Politics of Rights and The Political Novel while having different objects of study at the center of their analyses, both concern themselves with the difficulties…
Abstract
Scheingold's The Politics of Rights and The Political Novel while having different objects of study at the center of their analyses, both concern themselves with the difficulties in producing meaningful social change on a late modern political terrain. His critiques of rights-claiming are echoed in debates over the practical and philosophical difficulties incorporating animals into contemporary legal regimes. This chapter considers insights from Scheingold's two texts arguing that his insights into the legal imaginary in the latter text anticipates the critique of animal rights while his emphasis on the fictional imaginary in the former text can also be found in contemporary texts that suggest animals can help us rethink political agency.