Global assessment of internal audit competence: Does one size fit all?

Coetzee, Philna; Erasmus, Lourens J.; Plant, Kato

doi:10.25159/1998-8125/5802

Cited by 8 publications

(11 citation statements)

References 13 publications

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“…Five knowledge aspects of competencies to perform work for internal auditors identified by CBOK 2010 are auditing, ethics, fraud awareness, internal auditing standards and technical expertise of the industry (The Institute of Internal Auditors Research Foundation (IIARF), 2013). Coetzee et al (2015), however, criticized CBOK 2010 study for generalizing the importance of competencies ranking across the global JIABR 11,2 internal audit practitioners. They argue that a particular region needs different assessments in the form of a country-specific internal audit competency assessment.…”

Section: Competency Of Internal Auditorsmentioning

confidence: 99%

Competency model for Shari’ah auditors in Islamic banks

Ali

Shafii

Shahimi³

2020

JIABR

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Purpose The purpose of this study is to identify the competencies required of Shari’ah auditor (SAR) in the Islamic banking environment. Design/methodology/approach A qualitative approach using a multiple-case study through the semi-structured interview was used. Data was gathered from a representative of Central Bank of Malaysia, and 30 other respondents consist of the Head of Shari’ah audit (HSA) and SAR from four types of banking institutions. A focus group discussion was later conducted to validate the model of competency proposed. Findings Results show a mixed practice on the recruitment of SAR. Most banking institutions prefer to use their existing internal auditors as opposed to recruiting fresh graduates or acquire experienced SAR from other financial institutions. Knowledge in Shari’ah, Islamic banking and Fiqh Muamalat is considered as the essential knowledge component for SAR, while auditing is revealed as the core skill that SAR should have to perform the Shari’ah audit effectively. The study also found that personal skills such as willingness to learn and teamwork as the complementing characteristics to the knowledge and skill components, as a package required for a competent SAR. Research limitations/implications The results of this study would have both theoretical and practical contributions to the regulatory bodies, academicians and professionals. Theoretically, this study made a concerted effort to enhance prior studies on the qualification aspect of Shari’ah audit literature, emphasizing the elements necessary to recruit competent SARs in the Islamic financial institutions (IFIs). The element of “time” has been infused to the existing effective job performance theory add dynamics to the model, recognizing the need for years of experience as part of elements necessary to become competent SAR. In practice, the competency model is recommended to the industry players in pooling competent talents in the Islamic finance industry (R4) and (B5). In spite of its limitation to confine only to the IFIs, it sheds light on human resource management within the Islamic organizations. Practical implications The study would contribute to the practitioners as a guideline to the Human Resource Department in recruiting their SAR and also for succession planning purposes. Originality/value A competency model for SAR was proposed focusing on building knowledge, core and personal skills that can be used as guidance in determining the criteria needed for a competent SAR, which is a new dimension for Islamic auditing literature. The sub-objective of determining the elements of competency, as well as understanding the current practice of recruiting the SAR became the input in the building of the competency model.

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Section: Competency Of Internal Auditorsmentioning

confidence: 99%

Competency model for Shari’ah auditors in Islamic banks

Ali

Shafii

Shahimi³

2020

JIABR

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“…Alzeban and Gwilliam (2014) and Brinkerhoff and Brinkerhoff (2015) were not univocal in terms of the significance of management support on the effectiveness of the internal audit. However, a similar voice was observed the significance of the relationship between internal auditors and external auditors (Alzeban & Gwilliam, 2014;Coetzee et al, 2015;Brinkerhoff & Brinkerhoff, 2015;Usman, 2016). Given that there is still ongoing contestation regarding what is the actual relationship between different factors affecting clean audit and the actual clean audit, it was important for the current study to join in the debate.…”

Section: Empirical Review and Hypothesis Developmentmentioning

confidence: 64%

“…Auditing has attracted a considerable amount of research in the last decennial (Melville, 2013;Baharud-din et al, 2014:129;Usman, 2016;Ali, Gloeck, Ahmi & Sahdan, 2017). Literature indicates that findings on auditing research were not univocal and it was analogous (Alzeban & Gwilliam, 2014;Coetzee, Erasmus & Plant, 2015). In their study carried out in the public sector, Baharud-din et al ( 2014) tested a relationship among auditor competency, auditor's independence, and objectivity with the effectiveness of the internal audit.…”

Section: Empirical Review and Hypothesis Developmentmentioning

confidence: 99%

A clean audit and service delivery comparative study of two municipalities in Mpumalanga province in South Africa

Rukuni

Maramura

Mampa

2022

IJRBS

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In recent years, most South African (SA) municipalities still need to produce clean audits. In 2018 and 2019, most municipalities in SA needed better-quality financial statements and performance reports. Misrepresentation of financial statements in audit reports is linked to inadequate governance, misappropriation of public funds and poor public service delivery. It is upon this background that this study aimed to: (i) assess perceptions of municipality middle management employees on factors affecting auditing, (ii) evaluate the differences in perceptions among municipality middle management employees on factors affecting auditing, (iii) measure the effect of factors affecting auditing on overall clean audit and (iv) establish the effect of clean audit on service delivery at two municipalities in Mpumalanga province. Using a structured questionnaire, a quantitative descriptive approach methodology was employed to collect data from a minimum sample of 294 employees in the middle management category working within the accounting and finance department at two municipalities in Mpumalanga province, SA. SPSS v28 was used to conduct descriptive and multivariate analyses, including mean, analysis of variance (ANOVA), correlation, and regression analysis. Results indicated that employees from the clean audit municipality had positive perceptions of factors affecting clean audit, while employees from the municipality with an unclean audit had negative perceptions. It was also concluded that factors affecting auditing had a statistically significant positive effect on clean audits. The findings in this study led to significant implications for theory and practice.

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“…The development of competencies within the internal auditing profession has been also spawned across the region and addressed expansively in prior studies (Coetzee Erasmus & Plant, 2015;Plant, Coetzee, Fourie, 2013;Pickett, 2000;Sarkis & Lefley, 2011). Competencies within the internal auditing profession refer to the abilities, skills and attributes required for the internal auditors to perform their duty or task (International Federation of Accountants, 2014).…”

Section: Internal Auditors Competencymentioning

confidence: 99%

“…Coetzee, Erasmus and Plant (2015) however criticized the CBOK 2010 study for generalizing the importance of competency ranking across the global internal audit practitioners. They argued that different assessments in the form of country-specific internal audit competency assessment are needed by certain regions with consistently different perceptions on the competency level of importance.…”

Section: Internal Auditors Competencymentioning

confidence: 99%

Challenges in Recruiting Specialized Internal Auditors: Case Study Evidence of Islamic Financial Institution in Malaysia

Ali¹

2018

IJARBSS

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The internal audit function within an organization is no longer confined to the conventional compliance or operational audit. Specialized internal audit has emerged with the rise of certain service sectors including the Islamic financial institutions (IFIs). This specialised audit known as shariah audit is purported to safeguard the welfare of faith-based investors by ensuring a shariah compliant IFIs. Effective shariah audit requires competent internal auditors. Shortage in qualified and competent internal auditors to conduct effective shariah audit has however become one of the challenges for the IFIs. This paper explores these challenges through the perspective of practitioners within the IFI in Malaysia as one of the active players in providing the Islamic banking products and services to the Muslims' users. This study adopted a multiple case-study to gather the data on challenges of shariah auditors of Islamic bank to perform their duty. Interview was conducted with a representative from the IFIs regulator and 30 internal auditors from four types of IFIs directly involved in conducting the shariah audit. There is currently a lack of standard operating procedure on the recruitment of specialized internal auditors in the IFI from a mixed practice on the composition of specialized internal auditors recruited by the IFIs with most of them being accounting qualified candidates. The IFIs also prefer to hire either internally or externally acquired experienced internal auditors. The main challenge in hiring this type of internal auditors is to have professionals with vast knowledge, skills and experiences in accounting, auditing and shariah related matters. This study contributes to the importance of competency practice among Islamic banking personnel. It also contributes to the management policy in the recruitment or training of shariah auditing professionals of IFIs in Malaysia. This empirical research contributes to the importance of competency practice among Islamic banking personnel besides management policy in the recruitment or training of shariah auditing professionals of IFIs in Malaysia.

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Global assessment of internal audit competence: Does one size fit all?

Cited by 8 publications

References 13 publications

Competency model for Shari’ah auditors in Islamic banks

Competency model for Shari’ah auditors in Islamic banks

A clean audit and service delivery comparative study of two municipalities in Mpumalanga province in South Africa

Challenges in Recruiting Specialized Internal Auditors: Case Study Evidence of Islamic Financial Institution in Malaysia

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