Advanced Diploma in Internal Auditing

Purpose

The purpose of the Advanced Diploma in Internal Auditing is to equip learners with the knowledge, skills, attributes and ethical consciousness to function optimally and become a competent internal auditor, in line with the professional standards set out by the Institute of Internal Auditors (IIA). Internal auditors are needed in both the private and public sectors. To execute their duties effectively, offering independent and objective judgement and advice to management, boards and audit committees, internal auditors must be appropriately qualified. The Advanced Diploma in Internal Auditing will thus bridge the gap in knowledge of aspiring internal auditors. This will be achieved by building on the work-readiness practical exposure that would have been acquired by the learners in the third year of study, by adding specialised theoretical knowledge and conceptual depth using a practical approach in teaching the content of the proposed qualification.

Internal auditors need to have a broad knowledge base and need to be proficient in all basic accounting-related principles to provide effective assurance and consulting services to an organisation. The qualification design of the Advanced Diploma in Internal Auditing will equip learners not only in Internal Auditing but also with expertise in all areas of the business, including Accounting, Information Systems, Information Technology, Management Accounting and Strategic Management, as their role is important for informing all functions of the organisation and different levels of management. The competencies developed include the ability to identify, analyse, synthesize and critically reflect on and address complex familiar and unfamiliar problems in the identified functional areas, applying evidence-based solutions and theory-driven arguments in internal auditing.

In addition to the institutional graduate attributes, the qualifying learners will be able to

• Demonstrate the competencies necessary to perform professionally and ethically in an entry-level internal auditing position.
• Perform computer-based internal audits and auditing of information systems.
• Solve analytical problems related to the improvement of financial, control or operational systems within an organisation.
• Demonstrate advanced communication and management skills to effectively manage the internal audit function itself as well as stakeholder relations.

Rationale

Within the current global and national climate of fraud, corruption, state capture, tenderpreneurship, wasteful and irregular expenditure and the requirements for compliance with the King Code, there is an increased focus on corporate governance and risk management. It is here where the role of the internal auditor is becoming increasingly critical from governance, ethical leadership, attitude, mindset and behavioural perspective. This has led to a dramatic growth of the internal auditing field resulting in an exponential increase in the number of positions available in the field. Consequently, there is an acute shortage of internal auditors.

Regarding the top 10 scarce skills in demand in SA, out of 1528 vacant positions, 35% were auditing related (external and internal). Furthermore, the role of an Internal Audit Manager was identified in two categories: one of the managerial occupations and one of the professional occupations in which employers experienced shortages. The shortage of qualified internal auditors in the public sector is generally worse off than the private sector.

There is also a need for internal auditors with skills sets that include data mining, data analytics and the ability to respond quickly and provide feedback quickly on disruptive events. However, despite the impacts of global and technological changes in business, many companies' internal audit skill sets have not evolved. Skill sets required relate in particular to specialised IT skills such as cyber-security, cloud services, mobile computing and enterprise resource planning. Therefore, the above-mentioned presents an opportunity for the conceptualization and development of a proposed Advanced Diploma in Internal Auditing that can address the direly needed skills set.

The competitive edge that this new qualification will offer is that it will enable learners to specialise in internal auditing, whilst meeting the requirements of the professional body, making this a practice-based qualification. The Advanced Diploma in Internal Auditing will develop increased capacity not only in traditional internal audit functions but also will provide an increased focus on information technology (IT) in response to industry and professional body-informed needs. This will not only meet the demands of theoretical engagement, but also the practical and technical expertise that is currently lacking amongst existing internal auditors. This will allow for the integration of theoretical and computerised auditing techniques, equipping learners with the underpinning knowledge to progress to Postgraduate level.

The qualification will also offer an opportunity for accreditation with a professional body by providing the educational component required by the Institute of Internal Auditors (IIA).

This qualification will replace the non-HEQSF-aligned Bachelor of Technology Degree in Internal Auditing at the institution.

Recognition of Prior Learning (RPL)

Learners who do not meet the minimum admission requirements may apply for Recognition of Prior Learning (RPL). RPL will be according to the institution's policy and includes a specified curriculum vitae, testimonials and certified copies of any education and/or training certificates.

RPL may have two modes, namely

• Credits in place of prior qualifications provided the new qualification is equivalent both in terms of learning content and NQF Level.
• Where substantial learning as a result of meaningful workplace (informal and non-formal) experience has been attained. Such learners can present themselves for assessment of prior learning (APL) for admission to the qualification.

Entry Requirements

The minimum entry requirement for this qualification is

• An appropriate Diploma at NQF Level 6.

Or

• A National Diploma in Internal Auditing at NQF Level 6.

Or

• An equivalent qualification at NQF Level 6.

This qualification consists of the following compulsory modules at National Qualifications Framework Level 7 totalling 120 Credits.

Compulsory Modules, Level 7, 120 Credits

• General Financial Reporting, 18 Credits.
• Financial Management, 18 Credits.
• Accounting Information Systems, 18 Credits.
• Management, 24 Credits.
• Internal Auditing, 24 Credits.
• Information Systems Auditing, 18 Credits.

1. Demonstrate the competencies necessary to perform professionally and ethically in an entry-level internal auditing position.
2. Perform computer-based internal audits and auditing of information systems.
3. Solve analytical problems related to the improvement of financial, control or operational systems within an organisation.
4. Demonstrate advanced communication and management skills to effectively manage the internal audit function itself as well as stakeholder relations.

Associated Assessment Criteria for Exit Level Outcome 1

• Critically analyse and evaluate compliance with corporate governance structures and codes (including King IV) to develop recommendations to enhance governance compliance in familiar and unfamiliar governance scenarios.
• Critically analyse management's enterprise risk management processes, frameworks and internal controls for alignment to the applicable Committee of Sponsoring Organisations (COSO) frameworks (internal control and enterprise risk management frameworks respectively).
• Formulate appropriate recommendations to improve the levels of risk management practices and internal control.
• Professionally plan, perform and communicate results of internal audit engagements (including consulting services) by applying the International Standards for the Professional Practice of Internal Auditing (ISPPIA) and Code of Ethics.

Associated Assessment Criteria for Exit Level Outcome 2

• Appropriately review and analyse an existing IT strategy to assess alignment to the corporate strategy and make appropriate recommendations to enhance alignment for familiar and unfamiliar scenarios.
• Analyse, evaluate and make recommendations familiar and unfamiliar scenarios of an IT governance setting appropriately based on the Control Objectives for Business Information and Related Technologies (COBIT) framework.
• Critically analyse, evaluate and make recommendations for a given IT enterprise-wide scenario in familiar and unfamiliar settings, concerning IT security, contingency planning and business continuity planning, general IT and application controls.
• Critically examine an IT environment, in familiar and unfamiliar scenarios, by applying the integrated knowledge and understanding of Accounting Information Systems, Information Systems Auditing, Information Systems/Information Technology to select the most appropriate audit strategy and approach.
• Apply the use of computer-assisted tools and techniques, including data analytics, to assess IT-related risk and controls continuously.
• Appropriately apply the principles of IT auditing and perform basic IT audits through the use of Computer Assisted Audit Techniques (CAATS).

Associated Assessment Criteria for Exit Level Outcome 3

• Critically analyse, appropriately evaluate and provide insight into financial data and effectively perform financial audits by applying knowledge and skills related to Financial Reporting.
• Critically review, analyse and make appropriate recommendations of management policies and decisions related to investment, capital budgeting, risk and return, valuations, working capital and other business decisions by applying advanced knowledge and understanding of Financial Management to make recommendations to enhance stakeholder wealth.
• Appropriately apply financial management principles to generate and effectively provide input to manage shareholder wealth, including but not limited to investment management, return analysis, valuations and capital budgeting.

Associated Assessment Criteria for Exit Level Outcome 4

• Appropriately apply general management practices, including strategic management processes, operations management, marketing, HR practices and management and stakeholder engagement.
• Demonstrate the ability to manage an internal audit activity regarding the International Professional Practices Framework (IPPF).

Integrated Assessment

The integrated assessment takes the form of an appropriate variety of both summative and formative assessment methods for example: written and oral examinations, problem-solving assignments, projects, case studies and the successful completion of a research project.

There is an appropriate balance between formative and summative assessments. The formative assessment usually consists of a variety of assessment tasks relevant to the field of study. In this qualification, it will consist of a variety of tasks such as assignments, group projects, on-line tests, simulations and case studies. Summative assessments usually consist of a variety of formal assessment tasks relevant to the field of study, including written tests, reports, authentic work-place group assignments and simulated case studies.