Diploma in Internal Auditing

Purpose

The purpose of this qualification is to equip learners with knowledge and skills that will enable them to operate effectively in internal auditing and prepare them to advance their career in this field. Qualified learners will be enabled to:

• Recognise and integrate the function of the internal audit activity in the broader role of Enterprise Governance, the management of risk within an enterprise and the establishment of internal control systems in response to the level of risk within an enterprise.
• Conduct an audit engagement in accordance with international standards on internal auditing.
• Establish an ethical framework in accordance with the prevailing standards and good business practice around which the qualifying learner exercises their decision-making ability when faced with technical and other complexities in an internal audit engagement.
• Have a global outlook on how the business world function and their role therein as an Internal Auditor.

Rationale

The Diploma in Internal Audit is designed to provide learners with detailed knowledge and understanding of operations in the area of internal audit. The internal audit function is recognised internationally as an essential part of good corporate governance in organisations, entities and government departments. In South Africa, legislation requires the establishment of an internal audit function in every public sector entity. This qualification will help to provide the required number of graduates to be able to fulfil the internal audit role. They will also to develop the required competencies, such as, to plan, implement, manage and advise on internal audits.

It should be noted that a 2010 study published by The Institute of Internal Auditors Research Foundation (IIARF) indicated that there is a future demand for skilled internal auditors from previously disadvantaged groups.

Recognition of Prior Learning (RPL)

RPL is in terms of the Institution's RPL policy. An applicant must have a minimum of five years related work experience and present a Portfolio of Evidence for admission and credits to certain modules.

Entry Requirements

The minimum requirement for admission to this qualification is

• Senior Certificate (SC).

Or

• National Senior Certificate (NSC) granting access to Diploma studies.

Or

• National Certificate Vocational (NCV), Level 4, granting access to Diploma studies.

This qualification comprises compulsory modules at Levels 5, 6 and 7 totalling 384 Credits.

Level 5, 112 Credits.

• Cornerstone 101, 12 Credits.
• Financial Accounting 1 Module 1, 12 Credits.
• Financial Accounting 1 Module 2, 12 Credits.
• Internal Auditing 1 Module 1, 12 Credits.
• Internal Auditing 1 Module 2, 12 Credits.
• Business Calculations, 12 Credits.
• Principles of Microeconomics, 12 Credits.
• Principles to Macroeconomics, 12 Credits.
• Values in the Workplace, 8 Credits.
• World of Work, 8 Credits.

Level 6, 200 Credits.

• Entrepreneurial Edge, 8 Credits.
• Business Fundamentals 1, 12 Credits.
• Commercial Law 1, 12 Credits.
• Business Fundamentals 2, 12 Credits.
• Financial Accounting 2 Module 1, 12 Credits.
• Financial Accounting 2 Module 2, 12 Credits.
• Internal Auditing 2 Module 1, 12 Credits.
• Internal Auditing 2 Module 2, 12 Credits.
• Taxation 1, 12 Credits.
• Commercial Law 2 Module 1, 12 Credits.
• Commercial Law 2 Module 2, 12 Credits.
• Managerial Accounting and Finance Module 1, 12 Credits.
• Managerial Accounting and Finance Module 2, 12 Credits.
• Entrepreneurial Spirit, 12 Credits.
• Corporate Procedures, 12 Credits.
• Business Informatics, 12 Credits.
• Statistics, 12 Credits.

Level 7, 72 Credits.

• Financial Accounting 3 Module 1, 12 Credits.
• Financial Accounting 3 Module 2, 12 Credits.
• Internal Auditing 3 Module 1, 12 Credits.
• Internal Auditing 3 Module 2, 12 Credits.
• Taxation 2 Module 1, 12 Credits.
• Taxation 2 Module 2, 12 Credits.

1. Audit manual and computerised business cycles, in accordance with International Standards of Internal Auditing.
2. Prepare and interpret financial statements of companies and groups of companies in accordance with the prevailing Accounting Standards, including the valuation of interests represented by these statements.
3. Record the accounting implications of changes within a company structure and investments.
4. Determine the tax liability of individuals, assist with the tax liability of other legal entities and prepare submissions to the South African Revenue Services.
5. Identify the economic environment within which South African commercial organisations apply their trade.
6. Develop an administration system together with the business plan for a business.

Associated Assessment Criteria for Exit Level Outcome 1

• Develop audit programs in accordance with current practice.
• Perform manual and computerised compliance and substantive financial audit tests on various fields within the organisation.
• Perform manual and computerised operational audit tests on various processes within the organisation.
• Apply statistical sampling techniques in selecting data for audit tests.

Associated Assessment Criteria for Exit Level Outcome 2

• Prepare financial statements for companies, disclosing all information required by the prevailing Accounting Standards.
• Prepare consolidated financial statements for group companies.
• Illustrate disclosure requirements in respect of changes in accounting policy, leases, instalment sales and earnings per share.
• Determine, compare and interpret ratios of profitability, liquidity, financial structure and financial cover.
• Determine the value of business interests by way of at least 3 valuation methods.

Associated Assessment Criteria for Exit Level Outcome 3

• Prepare accounting entries and draft balance sheet reflecting the effect of liquidations, amalgamations and reconstructions.
• Record investment transactions and clearly distinguish between capital from income.

Associated Assessment Criteria for Exit Level Outcome 4

• Clearly identify taxable income and tax-deductible expenses.
• Prepare annual tax returns for individuals and other bodies in accordance current taxation legislation.
• Prepare provisional tax returns in accordance with current taxation legislation.
• Clearly explain tax liability of the employer.

Associated Assessment Criteria for Exit Level Outcome 5

• Clearly describe interaction between supply and demand within the market place.
• Identify various market forms.
• Describe and discuss monetary policy.
• Describe and discuss fiscal policy.
• Understand international trade and finance.

Associated Assessment Criteria for Exit Level Outcome 6

• Compile effective internet mail and communication systems for the business.
• Compile effective documentation systems for the activities of the business.
• Select effective computer software system for the administration of a retail business.
• Identify and determine viability of a business opportunity.
• Compile workable business plan, with subsections clearly covering the functions of marketing, finance, administration, personnel, assets, logistics, production, public relations and housekeeping, for a retail business that will ensure the successful starting of such business.

Integrated Assessment

Due to the nature of the discipline it is imperative that learners are trained in the theoretical knowledge of a subjected and assessed in the practical in the application thereof. In this regard the following assessment tools are utilised in the modules of this qualification:

• Portfolios.
• Simulations.
• Written assignments.
• Written tests.
• Case studies and case presentations.
• Face to face contact with learners.