Measuring internal audit effectiveness in a specific South African public higher education institution
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Abstract
Investment in the internal audit function (IAF) is extensively dependent on the added value it adds to the processes of an organisation. Frequently, the value added is linked to internal audit effectiveness. Scholars argue that measuring internal audit effectiveness is a subjective topic that needs to be understood. Previous studies utilised various measurement techniques but made little effort to consider the auditee’s perceptions in higher education institutions (HEIs). Therefore, this study employs the measurement of internal audit effectiveness based on the work of the IAF, as perceived by auditees in a specific South African public HEI. This practice is conducted by reviewing the influence of internal audit effectiveness on the governance, risk management and internal control processes of the chosen institution. This study was descriptive and empirical and, thus, constituted survey research. This study also employed quantitative research that forms part of the positivistic research paradigm. Through non-probability sampling methods (purposive sampling), 102 responses were received from full-time employees across multiple departments at a specific South African public HEI. The research adhered to ethical considerations and the relevant data collected were analysed through descriptive and inferential statistics. The study revealed a significant positive relationship between internal audit effectiveness, governance, risk management and internal control processes. Auditees concur that internal auditing promotes an ethical culture within the studied public HEI. Most respondents expressed positive satisfaction with the internal audit work, confirming the value addition of internal auditing to organisational processes. This study seeks to measure internal audit effectiveness within the internal processes practised by the selected departments of a public HEI from the perspective of internal audit service recipients, rather than service providers. Measuring internal audit effectiveness within the auditee’s internal processes can assist decision-makers in HEIs to establish the value addition of internal auditing on organisational processes. Moreover, these results should provide feedback to the IAF of the studied institution that will help to improve its performance.
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