Critical considerations to strengthen the internal audit function in public institutions.

Abstract

There is an incvitlble widening of the scope of the internal audit function, hO\\,e,,er, in Sooth Africa the internal audit lunclion ~ still in its carty de\-elopment stagies and lotuses mainly Oil oompfiance and fiflaociaJ audits, as opposed IO the wider context of financial management. The role a audit comm~ is to enhance~ governance and acoounr.ihility and to ~rcngthen the internal and exlemal audit (unctions~ fiAc1ncial nw 1~ieinent as well as the °'"'all gO\,emance of public instittltions. Consequently. it strengthens the position of the inicmal audi1 function by acting as an inckpcndcnt forum internal auditors could oonsult with on nl3ttel's affecting financial 1nan~ieinent. The article found that internal auditing reporting improved in public institutions where the audit committee has a strong influence on intcm;il i-luditing practices and audit repons clearty demiW audit findings and explained thoroughly how the internal auditor reached certain conclusions and/or opmions. If an audit committee carries out its work effCCU\'Cfy, it serves as an c(icctive means ol ,nonito<lng and promoting a system ol good go,~ance within any institution. Hence, aud rl oommiuees are nol 111erefy paSSf\'e watchdogs when it comes to gmm,ance issues - the)• are exjX!Cted to take an active lead in ensuring sound f1nar'('.ial gove,n,1nce in a public institution.