Strategic Effectiveness: Core Competencies for the Internal Audit Function in South African Organisations

Abstract

This study was conducted to determine the most important Internal Audit core competencies for Internal Audit Functions to competently fulfil a role in supporting organisations to effectively execute strategies. Internal Audits governance mandate requires it to support the achievement of organisational objectives; and the gap in intended performance and actual performance of the average organisation provides significant scope for improvement. The conclusions of this study are drawn from a sample of Internal Auditors working in South African organisations in the private and public sector. The perspectives given by the participants interviewed were analysed in the context of strategy execution success factors and core competencies for Internal Auditors identified though the review of a number of peer reviewed academic sources, before drawing specific conclusions. The research determined the key strategy success factors that characterise a strategic effectiveness role for Internal Audit; and then determined the Internal Audit core competencies to be prevalent in an Internal Audit function that competently fulfils its role in supporting the effective execution of organisational strategies. Through the application of its unique organisational attribute, objectivity, and by demonstrating a detailed understanding of the business and its competitive environment, Internal Audit functions are well placed to dispassionately perform critical reviews of strategies and the execution thereof. Enabling Internal Audit to act as a catalyst of change by ensuring that vertical communication in the organisation is fact-based and open and that organisational change activities are undertaken with the appropriate sense of urgency. Internal Audit functions that competently fulfil a strategic effectiveness role will be better positioned to add business value and ultimately support their organisations execute strategies more effectively; thereby helping close the gap in intended and actual business performance.