Loading...
Role of internal auditing function in performance of state-owned enterprises (SOEs) in Zimbabwe : a corporate governance framework
Author(s)
Mukono, Henry
Date Issued
2021
Type
Thesis
Publisher
Cape Peninsula University of Technology
Abstract
Corporate governance has been seen as an indispensable factor in making sure that
misappropriation in state-owned enterprises (SOEs) is deterred. This study examined
the role of internal auditing in boosting good corporate governance practices in the
SOEs sector in Zimbabwe focusing on performance and to, possibly, provide guidance
on strengthening the role of internal auditing in corporate governance. Currently, there
is a lacuna of academic work in the public sector on the role of internal auditing as an
integral part of corporate governance. Corporate governance is a topical issue in the
private and public sectors due to a plethora of corporate failures and a myriad of
challenges. Previous researchers have documented studies on internal audit function
(IAF). However, there is a dearth of research conducted in Zimbabwe, in particular, and
Sub-Saharan Africa, in general, on the role of IAFs on the performance of SOEs using a
corporate governance approach as well as studies premised on the agency, institutional
and stakeholder theories. The study of the role of internal auditing as a cornerstone of
corporate governance is an unexplored area. This study addresses the knowledge gap
by examining the role of internal auditing in the performance of SOEs using a corporate
governance approach in a Zimbabwean setting. The study elucidates the role of internal
auditing, which is assumed to be inimitable, the hindrances, the consequences of SOEs
in emerging economies, particularly in Zimbabwe.
This study used a constructivist/interpretivist paradigm. A qualitative research approach
was chosen, using a case study research design, and data was gathered through semistructured
in-depth face-to-face interviews with 20 purposively sampled participants
such as senior managers (SMs), senior internal auditors(SIAs), chief audit executives
(CAEs), chief executive officers (CEOs), audit coommittees (ACs) and board of
directors (BODs) of SOEs as these are connected with IAFs of five (5) Zimbabwean
SOEs and documentary review. Thematic content analysis was used for data analysis.
Data was analysed using Atlas.ti software version 8. It is recommended that internal
audit stakeholders should take cognisance of these components or dimensions when
considering the effectiveness of the roles of the IAFs. The results contribute to the
current literature through the inside view about the benefits and current challenges of
IAFs in varied set-up of entities. Suggestions to enhance the performance of the IAF
include effective involvement of ACs in internal audit activities, the employment of
competent internal auditors and determining the impact of internal audit on corporate
governance. The findings of the study showed that IAFs are viewed in a positive light
and respondents do put trust on internal audit. The study further found that IAFs are
informants of the ACs who are vital in areas of internal control, risk management,
governance and compliance matters. This is underpinned by the fact that internal
auditing is regarded as ethical, competent in its core technical areas and able to provide
internal audit reports, which are informative, persuasive and calling for action.
The findings elevated by the IAFs should be considered by the leadership and
assurance bringers as well as executing their commendation. The research indicates
that the IAFs, as currently structured, does have a role to play within legislative
frameworks and professional best practices. However, the literature review indicates
that the IAF remains a key component of corporate governance for providing valuable
guidance on issues relating to control and risk in SOEs. The study recommended that
state-owned enterprises should employ workers with experience in internal auditing in
order to boost the performance of corporate governance. The work experience will
equip internal auditors with certain soft skills such as team working, communication
skills and commercial awareness, which improve corporate governance. Imperative
areas were elucidated by the study in order for the policy makers, politicians and
oversight bodies to consider IAFs valuable in order for IAFs to be able to rescue SOEs
who are critical in the nation. However, they are not treated seriously and with care. The
study findings support literature on the contribution of internal audit to the performance
of SOEs from an emerging market perspective and is the first of its kind in Zimbabwe.
The study finding suggests ways of boosting the development of knowledge for upcoming
researchers so that they can research further in emerging economies. Besides,
the study presented a framework which was informed by the theoretical framework,
empirical results and best practice as documented in the literature. This can serve as a
practical and sustainability toolkit for use by SOEs on the role of IAFs.
misappropriation in state-owned enterprises (SOEs) is deterred. This study examined
the role of internal auditing in boosting good corporate governance practices in the
SOEs sector in Zimbabwe focusing on performance and to, possibly, provide guidance
on strengthening the role of internal auditing in corporate governance. Currently, there
is a lacuna of academic work in the public sector on the role of internal auditing as an
integral part of corporate governance. Corporate governance is a topical issue in the
private and public sectors due to a plethora of corporate failures and a myriad of
challenges. Previous researchers have documented studies on internal audit function
(IAF). However, there is a dearth of research conducted in Zimbabwe, in particular, and
Sub-Saharan Africa, in general, on the role of IAFs on the performance of SOEs using a
corporate governance approach as well as studies premised on the agency, institutional
and stakeholder theories. The study of the role of internal auditing as a cornerstone of
corporate governance is an unexplored area. This study addresses the knowledge gap
by examining the role of internal auditing in the performance of SOEs using a corporate
governance approach in a Zimbabwean setting. The study elucidates the role of internal
auditing, which is assumed to be inimitable, the hindrances, the consequences of SOEs
in emerging economies, particularly in Zimbabwe.
This study used a constructivist/interpretivist paradigm. A qualitative research approach
was chosen, using a case study research design, and data was gathered through semistructured
in-depth face-to-face interviews with 20 purposively sampled participants
such as senior managers (SMs), senior internal auditors(SIAs), chief audit executives
(CAEs), chief executive officers (CEOs), audit coommittees (ACs) and board of
directors (BODs) of SOEs as these are connected with IAFs of five (5) Zimbabwean
SOEs and documentary review. Thematic content analysis was used for data analysis.
Data was analysed using Atlas.ti software version 8. It is recommended that internal
audit stakeholders should take cognisance of these components or dimensions when
considering the effectiveness of the roles of the IAFs. The results contribute to the
current literature through the inside view about the benefits and current challenges of
IAFs in varied set-up of entities. Suggestions to enhance the performance of the IAF
include effective involvement of ACs in internal audit activities, the employment of
competent internal auditors and determining the impact of internal audit on corporate
governance. The findings of the study showed that IAFs are viewed in a positive light
and respondents do put trust on internal audit. The study further found that IAFs are
informants of the ACs who are vital in areas of internal control, risk management,
governance and compliance matters. This is underpinned by the fact that internal
auditing is regarded as ethical, competent in its core technical areas and able to provide
internal audit reports, which are informative, persuasive and calling for action.
The findings elevated by the IAFs should be considered by the leadership and
assurance bringers as well as executing their commendation. The research indicates
that the IAFs, as currently structured, does have a role to play within legislative
frameworks and professional best practices. However, the literature review indicates
that the IAF remains a key component of corporate governance for providing valuable
guidance on issues relating to control and risk in SOEs. The study recommended that
state-owned enterprises should employ workers with experience in internal auditing in
order to boost the performance of corporate governance. The work experience will
equip internal auditors with certain soft skills such as team working, communication
skills and commercial awareness, which improve corporate governance. Imperative
areas were elucidated by the study in order for the policy makers, politicians and
oversight bodies to consider IAFs valuable in order for IAFs to be able to rescue SOEs
who are critical in the nation. However, they are not treated seriously and with care. The
study findings support literature on the contribution of internal audit to the performance
of SOEs from an emerging market perspective and is the first of its kind in Zimbabwe.
The study finding suggests ways of boosting the development of knowledge for upcoming
researchers so that they can research further in emerging economies. Besides,
the study presented a framework which was informed by the theoretical framework,
empirical results and best practice as documented in the literature. This can serve as a
practical and sustainability toolkit for use by SOEs on the role of IAFs.
Additional information
Thesis (DComm (Internal Auditing))--Cape Peninsula University of Technology, 2021
File(s)![Thumbnail Image]()
Loading...
Name
MUKONO_HENRY_218342861.pdf
Size
5.31 MB
Format
Adobe PDF
Checksum
(MD5):e5aab015db28ffcc7e47da92a63eb09a