Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


Internal audit effectiveness, role of internal audit function and performance of state-owned enterprises

Author(s): Henry Mukono, Job Dubihlela

The purpose of this study is to assess the role of internal audit functions in Zimbabwean State-owned enterprises. A qualitative research approach by way of a case study research design. Data were gathered from the auditor general’s reports and apposite literature followed by in-depth interviews with audit managers, senior internal auditors, chief audit executives, chief executive officers, audit committees and board of directors of Zimbabwean state-owned enterprises. A thematic content analysis was used to analyze data. Responses were analyzed using ATLAS.ti software version 8. The findings revealed that IAFs are critical in SOEs in Zimbabwe and they play various roles such as oversight, deterrence, insight, foresight, detection, evaluation of the risk management, internal control and corporate governance processes as well as consulting, assurance and value-adding roles. Consequently, this paper proposed a practical IAF effectiveness framework that is aligned to the needs of SOEs. The IAF effectiveness model presented in this paper is expected to serve as a practical IAF effectiveness model/tool for use by SOEs since it was well informed by the empirical outcomes and best practice, as chronicled in the literature. This paper contributes to internal auditing literature in the SOEs sector. Furthermore, this is a first of its kind empirical study to explore the being of the pivotal components of a nifty IAF effectiveness model framework in SOEs, as stated by best practice.

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