Diploma in Internal Auditing

Purpose

The purpose of the qualification is to prepare learners for a successful and rewarding career in internal auditing. This qualification allows for vertical articulation into an Advanced Diploma in Internal Auditing and, where available, an Advanced Diploma in Financial Accounting or Financial Management. The completion of this qualification will also meet the minimum entry requirements for admission to a Bachelor's Degree. Accumulated credits may also be presented for admission and recognition into a related Bachelor's Degree programme.

The Diploma leverages current accounting, governance and information management courses to build a strong multidisciplinary programme, thereby preparing learners for a career as a professional in the field of internal auditing. Upon completion of the Diploma, qualifying learners will be able to plan and execute basic internal audits and prepare basic audit reports by identifying appropriate procedures, tools and techniques for achieving the specific internal audit objectives. Qualifying learners will be able to recognise, discuss, analyse and explain financial statements from both a financial accounting and financial management point of view. They will also be able to explain the reporting standards, governance framework and legislative requirements underlying the financial statements. They will also be able to calculate amounts of income tax payable by individuals and a variety of business forms. The qualifying learners will also be able to identify and analyse a number of financial and non-financial key risks areas and make recommendations for the mitigation thereof. They will be able to identify internal control weaknesses and make recommendations for improving controls to ensure that errors and fraud are prevented and detected. Through application of appropriate computer assisted audit tools and techniques, acquired through the Work-Integrated learning (WIL) modules, they will be able express an opinion on the soundness of the system of internal controls.

Rationale

The internal audit profession is a fast growing profession, not only globally, but also in South Africa. A host of corporate governance guidance or regulation documents (e.g. King Report on Governance), as well as legislation (e.g. Public Finance Management Act or PFMA and the Municipal Finance Management Act or MFMA) has, in the first place, made the establishment of an internal audit function either compulsory or advisable in organisations in both the private and the public sectors. In the second place, this guidance and legislation added significantly to establishing sound governance principles; with internal auditing seen as one of the cornerstones of a sound governance framework. In the third place, although this guidance and legislation have improved governance, it has also brought about stringent corporate governance responsibilities on organisations. Furthermore, external auditors often rely on the work of internal auditors providing that they are satisfied that internal audit engagements are conducted in compliance with international internal audit standards. Internal auditing can add much value to simplify the processes and also ensure that organisations adhere to the guidance and legislation. The internal audit function provides both assurance and advisory services to senior management and boards of organisations.

In South Africa, the professional practice and education requirements of internal auditors are overseen by the Institute of Internal Auditors South Africa (IIA SA). The IIA-SA is affiliated with the IIA Global in the United States of America (US) and is one of the largest affiliate outside the US. With regard to internal audit education, the IIA Global has developed a curriculum for tertiary institutions and constantly accredits individual institutions on various levels. The curriculum of the IIA Global was developed after wide international consultation with universities and practising internal auditors. This formal, vocational qualification, being aligned to the curriculum of the IIA Global, allows qualifying learners entry to the professional examinations of the IIA Global.

The development of this qualification is in line with government policies and provides professional career and learning pathways for learners to obtain access to higher education qualifications in internal auditing.

Recognition of Prior Learning (RPL)

The institution accepts RPL as an integral part of academic practice, and that all learning has value. To this end the institution will assess all applications for prior knowledge and award credits where they are due. In this way, the institution will achieve equity in its academic learning.

The structure of this qualification makes the Recognition of Prior Learning possible. This qualification may therefore be achieved in part through the Recognition of Prior Learning, which includes formal, informal and non-formal learning and work experience. The learner will be thoroughly briefed on the mechanisms to be used and support and guidance will be provided.

Entry Requirements

The minimum entry requirement for this qualification is

National Senior Certificate with an endorsement of a Bachelor's Degree, or an equivalent qualification on National Qualifications Framework (NQF) Level 4.

This qualification consists of the following compulsory modules at Levels 5 and 6 totalling 360 Credits.

Compulsory Modules, Level 5:120 Credits

• Communication for Academic Purposes I, 10 Credits.
• Business Communications I,12 Credits.
• Business Information Systems I, 12 Credits.
• Business Mathematics I, 12 Credits.
• Life skills I, 2 Credits.
• Introduction to Information Literacy I, 2 Credits.
• Computer literacy I, 10 Credits.
• Corporate Governance I, 12 Credits.
• Financial accounting IA, 12 Credits.
• Financial accounting IB, 12 Credits.
• Public Sector Governance, Control, and Auditing I, 12 Credits.
• Work Integrated learning (WIL) (simulation) I, 12 Credits.

Compulsory modules at Level 6, totalling 240 Credits

• Financial accounting IIA, 12 Credits.
• Financial accounting IIIA, 12 Credits.
• Financial accounting IIB, 12 Credits.
• Financial accounting IIIB, 12 Credits.
• Auditing IA, 12 Credits.
• Internal auditing IIA, 12 Credits.
• Auditing IB, 12 Credits.
• Internal auditing IIB, 12 Credits.
• Financial Management 1A 12 Credits.
• Information systems auditing IB, 12 Credits.
• Financial Management 1B, 12 Credits.
• Information systems auditing IA, 12 Credits.
• Taxation 1A, 12 Credits.
• Risk Management and Control II, 12 Credits.
• Business law I, 12 Credits.
• Audit Software Systems I, 12 Credits.
• Work Integrated Learning (WIL) (simulation) IIA, 12 Credits.
• WIL (simulation) IIB, 12 Credits.
• WIL (simulation) IIIA, 12 Credits.
• WIL (simulation) IIIB, 12 Credits.

1. Demonstrate an understanding of the professional standards and ethics of internal auditing, legal environment aspects, information systems environment, principles and concepts of risk and risk management and the functioning of the internal audit function within various sectors.
2. Demonstrate understanding of the financial management, financial accounting, taxation, operational activities and the laws and regulations of various sectors.
3. Demonstrate the ability to evaluate, select and apply internal audit engagement steps, audit programs and test procedures, audit tools and techniques in planning and conducting professional internal engagements to evaluate compliance laws and policies, and safeguarding of assets within various sectors.
4. Demonstrate the ability to accurately perform financial management activities, prepare and interpret financial statements, accurately performed for sole traders, and ethically calculate income taxation for partnerships and listed companies.
5. Demonstrate the ability to identify, analyse and mitigate financial and non-financial key risks areas and how to prevent and detect fraud and corruption risk areas by recommending appropriate controls for various sectors; examine the impact of the global business environment on risk.
6. Demonstrate understanding of the implications of decisions.

and actions for organisations and ethics prescribed for the internal audit profession.

1. Demonstrate competence in computer literacy and information literacy to communicated effectively using appropriate present and communicate complex technology to internal audit stakeholders.
2. Demonstrate the ability to make decisions and act appropriately in applying between financial management, accounting, the relationships between financial taxation, and information systems operational activities, legislation, and identifying how actions, ideas or developments in these impact on internal audit engagements within various sectors.
3. Demonstrate the ability to evaluate learning and work performance, specific learning needs, team work, learning needs, team work, responsibility for responsibility for own actions and actions of others against given criteria.

Associated Assessment Criteria for Exit Level Outcome 1

• Explain the professional standards and ethics professional standards and ethics of internal auditing.
• Explain legal environment aspects are information systems environment, principles explained within various sectors.
• Describe the information systems environment and the functioning of the internal audit within sectors.
• Describe the functioning of the internal audit function within sectors.

Associated Assessment Criteria for Exit Level Outcome 2

• Identify and discuss financial management concepts and financial accounting, for various sectors.
• Prepare financial statements according to applicable framework and professional standards.
• Identify and explain the rules for calculating tax for various sectors.
• Discuss the operational activities, laws and regulations applicable to an organisation for various sectors.

Associated Assessment Criteria for Exit Level Outcome 3

• The internal audit engagement steps select and apply internal audit engagement are professionally evaluated and applied in a steps, audit programs, test procedures, and practical scenario for various sectors.
• Audit programs and test procedures are prepared and applied to professionally evaluate the compliance with laws and regulations and the safeguarding of assets for various sectors.
• Audit tools and techniques are evaluated, selected and applied during the planning and conducting of an internal audit.

Associated Assessment Criteria for Exit Level Outcome 4

• Accurately perform a budget, budgetary controls and investment and financing decisions for sole traders, partnerships and listed companies.
• Interpret and apply appropriate accounting standards for the preparation of the financial statements for sole traders, partnerships as well as listed companies.
• Ethically apply the framework for the calculation of taxable income ethically for sole traders, partners and listed companies.

Associated Assessment Criteria for Exit Level Outcome 5

• Identify and evaluate the financial and non-financial key risk areas are and make recommendations for improvement.
• Diligently detect and analyse the fraud and corruption risk areas and make recommendations for prevention.
• Explain suitable control strategies for mitigation of risks and fraud for various sectors.

Associated Assessment Criteria for Exit Level Outcome 6

• Explain the ethical implications of decisions and actions in the context of an organisation and an individual.

Associated Assessment Criteria for Exit Level Outcome 7

• Present complex information effectively to internal audit stakeholders.

Associated Assessment Criteria for Exit Level Outcome 8

• Apply decisions making skills about the relationships, between financial management, accounting, taxation, operational activities, legislation and information systems when performing internal audit engagements within various sectors.

Associated Assessment Criteria for Exit Level Outcome 9

• Evaluate using work integrated learning relevant to internal auditing to assess own work performance and actions of others.

Integrated Assessment

In order to achieve the stated exit outcomes, integrated assessment will take the form of various formative and summative assessments. The criteria stated in the table below will assess the extent to which learners can practice their competency in the field of internal auditing. It will measure the extent to which all learners have integrated the knowledge, skills and attitudes delivered to them as reflected in the exit outcomes. The assessments will avail opportunities for reflection on action in order to develop reflexive competencies. These integrated assessments will be conducted throughout the duration of the programme. In addition to these assessments, work integrated learning will be integrated as part of formative development in a simulated form.

Formative Assessment

• Interim presentations.
• Continuous feedback and critique on work in the programme.
• Class tests.
• Written exercises.

Summative Assessment

• Presentations.
• Essays.
• Group assignments.
• Individual written assignments.
• Examinations.