3. Electronic Theses and Dissertations (ETDs) - All submissions
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Item Outsourcing the internal audit function : a survey of the South African public and private sectors(2011-12-12) Yasseen, YaeeshOrganisations are constantly striving to maximise shareholder wealth by improving effectiveness and efficiency of operations. There has been an emerging trend since the early 1980‟s to outsource functions which were considered non-core. These trends have now moved into the internal audit sphere, a function which was previously maintained in-house. With the outsourcing of Internal Audit Functions issues such as independence and the value adding approach of internal audit are brought into question. This paper explores similarities and differences between public sector internal auditing and its counterpart in the private sector in South Africa. Using survey data collected from a purposive mix of 72 organisations in the South African private and public sector, the degree of internal audit outsourcing, the rationales behind their outsourcing decisions, the types of internal audit services providers, the perceived status of in-house and the perception of Independence of outsourced Internal Audit Functions were investigated. Results from statistical analysis suggest that there was no significant difference in the consideration of outsourcing of Internal Audit Function by sector. The private sector was significantly more likely to consider internal audit a core activity when compared to the public sector while the public sector were more uncertain. No significant differences were observed between sectors with regards to interaction with external auditors in terms of coordination of areas of audit coverage and work schedule. Private companies were significantly more likely to have longer hours provided by interval service providers relative to outside providers when compared to the public sector. The biggest difference appears to be that private companies chose a big 4 accounting firm more often than in the government sector. Conversely the government sector had a higher frequency of choosing smaller accounting firms and specialised internal audit providers when compared to the private sector. The value of this research study contributes to the existing body of knowledge by means of bridging the gap between the theory and practice from a developing economy xvi and emerging market perspective, by highlighting the different perspectives of Internal Audit practice. Challenges that face this developing economy that are of particular interest when considering the sourcing arrangements of the Internal Audit Function, are events (political, social and economical) that have occurred in South Africa during the past 15 years. The public sector element is unique to other studies that were undertaken in South Africa.Item An evaluation of the Financial Sector Charter and the Community Reinvestment Bill and their implications on the delivery of low income housing finance in South Africa.(2009-02-25T11:07:40Z) Nyandoro, EdithThis research report is an account of the results of investigations into the critical analysis of the private sector’s Financial Sector Charter (FSC) and the government’s Community Reinvestment Bill (CRB) in comparing their anticipated advantages towards housing and housing finance for the low income sector in South Africa. 2 stages of data gathering were adopted; namely interviews with 5 Banking Council officials and 5 Ministry of Housing officials and a questionnaire survey with representatives from SACC, NALEDI, SANGOCO, COSATU and SANCO which are independent organizations, which amongst other duties, generally assist in serving the social needs of disadvantaged individuals in the society. Multi-criteria analysis and SWOT analysis techniques were used to analyse the qualitative data. Results showed that the most critical aspect of the FSC is the establishment of risk sharing responsibilities between the government and the private sector, which still needs to be resolved. The private sector views the CRB as a forceful mechanism with strict requirements, which would result in the private sector’s participation in provision of housing finance to the low income sector to be ineffective as they would be acting unwillingly. Independent organizations view the CRB as being lenient on the private sector. Evaluation of the CRB and FSC showed that ultimate success lies in the combined efforts between the government and private sector, which in turn lies in the settling of the Memorandum of Understanding on-going negotiations. Key recommendations for addressing the low income sector housing and housing finance problems include; cultural adjustment of the banks towards low income sector individuals, formation of partnerships in dealing with housing and housing finance problems, establishment of efficient secondary property markets through amenities provision and infrastructure upgrading, identification of effective default management models, accommodation of new intellectual ideas and provision of different mortgage securities by banks and the government.