The role of Internal Audit Function (IAF) in integrated reporting in state owned entities and possible challenges to IAF's involvement, and potential future role of IAF in integrated reporting

dc.contributor.authorMakhathini, Hlengiwe Thandeka
dc.date.accessioned2020-09-16T11:29:02Z
dc.date.available2020-09-16T11:29:02Z
dc.date.issued2019
dc.descriptionA research report submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, Johannesburg, in partial fulfilment of the requirements for the degree of Master of Commerce in Accounting, November 2019en_ZA
dc.description.abstractOrientation: Integrated Reporting (IR) is a developing reporting approach that assists companies to efficiently report in a concise manner. IR provides financial and non-financial information, and for the report to be credible to stakeholders, it requires assurance. Currently, there are no assurance frameworks for IR, and there are various types of assurance providers. Research Aim: The primary aim of the study is to understand the role that the Internal Audit Function (IAF) of State-Owned Entities (public entities) in South Africa plays in IR, to understand challenges associated with playing this role and to identify the future role of IAF in IR. Motivation for the study: In South Africa, the top 18 SOEs have an asset base of over R1.1 trillion and generate turnovers of over R395 billion which is testimony that they play a critical role in the economy. To improve communication of key objectives and how the mandate of the entity is being achieved, several public entities have voluntarily adopted IR. In the provision of information, there is always a risk of accuracy, validity and completeness and as a result King Code recommends that independent assurance be provided on IR. The assurance will increase the legitimacy of IR to the various stakeholders. There are several potential assurance providers for IR. IAF already plays an assurance role in terms of internal controls and the control environment of an entity, and therefore, has the potential to play a significant role in IR. The motivation for the study is therefore, to understand if the IAF of public entities has embraced this potential role; to understand challenges associated with playing this role and to identify what the potential future role might be. Research approach and method: A qualitative approach was followed, and data was collected through semi-structured interviews to explore the current environment and role played by the IAF. The data collection process involved interviewing Chief Audit Executives (CAEs) or Heads of Internal Audit of SOE’s, and thematic analysis was used to analyse the findings. Findings: The findings from this study are that corporate governance; the operating environment and the skills & capacity of the IAF are critical for the IAF to play a meaningful role in the IR process. Most CAEs highlighted the need for the IAF to be a proactive partner to the business in the IR process to add value and achieve a higher buy-in from stakeholders. Contributions: This study contributes the to the existing body of knowledge on IR in the public sector; specifically, in terms of highlighting the role and challenges of the IAF in the preparation of IR as well as identifying the potential future role of the IAF in IRen_ZA
dc.description.librarianXL2019en_ZA
dc.facultyFaculty of Commerce, Law and Managementen_ZA
dc.format.extentOnline resource (xii, 68 leaves)
dc.identifier.citationMakhathini, Hlengiwe Thandeka. (2019). The role of Internal Audit Function (IAF) in integrated reporting in state owned entities and possible challenges to IAF's involvement, and potential future role of IAF in integrated reporting. University of the Witwatersrand, https://hdl.handle.net/10539/29678
dc.identifier.urihttps://hdl.handle.net/10539/29678
dc.language.isoenen_ZA
dc.rights.holder University of the Witswatersrand, Johannesburg
dc.schoolSchool of Accountancyen_ZA
dc.subjectUCTD
dc.subjectAssurance
dc.subjectIntegrated Report
dc.subjectInternal Audit Function
dc.subjectustainability
dc.subjectState Owned Entities
dc.subject.lcshAuditing, Internal
dc.subject.lcshCorporate governance
dc.subject.lcshCorporations--South Africa--Accounting
dc.subject.otherSDG-8: Decent work and economic growth
dc.titleThe role of Internal Audit Function (IAF) in integrated reporting in state owned entities and possible challenges to IAF's involvement, and potential future role of IAF in integrated reportingen_ZA
dc.typeDissertationen_ZA

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