Department of Strategic Studies

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https://scholar.sun.ac.za/handle/10019.1/15139
Department of Military Strategy was the old name

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Browsing Department of Strategic Studies by browse.metadata.advisor "Roos, Mariaan"

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    The effective internal audit function as part of a sound corporate governance structure : the case study of Saldanha Bay Municipality
    (Stellenbosch : Stellenbosch University, 2020-12) Dichabe, Omphemetse Lorraine; Roos, Mariaan; Stellenbosch University. Faculty of Military Science. School for Security and Africa Studies: Military History.
    ENGLISH ABSTRACT: South African local government is marred by many problems relating to governance. Because of these problems, it is necessary to explore the effectiveness of the Internal Audit Function (IAF) in assisting management with governance within local government. Research has shown a positive relationship between the characteristics of corporate governance and the IAF. This study sets out to establish the effectiveness of the IAF as part of a sound corporate governance structure at the Saldanha Bay Municipality (SBM) during the period 2009/2010 to 2017/2018. A qualitative approach utilising the case study method was employed. Data was collected from municipal documents, as well as from unstructured interviews to corroborate the document analysis. The findings of this study highlight the challenges experienced by the IAF. The study found that the IAF lost skills and competencies repeatedly due to resignations. These staff shortages hampered the quality of work of the IAF, and prevented the IAF from being subjected to external quality assessments for the duration of the study. The low implementation rate of IAF recommendations is a cause for concern which contributes to repeat findings by the IAF and AGSA. The study also found that the IAF has two reporting lines - functionally to the audit committee (AC) and administratively to the municipal manager (MM), in accordance with best practice requirements. Although the IAF is not viewed as a strategic partner, but rather a supporting function of management, the support from the AC and MM may be utilised to improve governance at the SBM. The SBM can utilise the results of this research for purpose of reviewing current institutional management practices, and also as a benchmark for improvement of such practices. The findings and observations of this study may also assist other municipalities conducting a similar exercise.