Postgraduate Diploma in Internal Auditing

Purpose

The Postgraduate Diploma in Internal Auditing is an interdisciplinary qualification offered for one year on full-time basis, preparing individuals for careers in the fields of Internal Auditing and training them to be Professional Internal Auditors. The purpose of the qualification is to strengthen and deepen the Advanced Diploma learner's knowledge in Internal Auditing as well as working professionals from other disciplines. Also, the learners will have knowledge of advanced reflection and development through a systematic survey of current thinking, practice and research methods in finance. Qualifying learners will be able to demonstrate the ability to independently analyse, design, implement, monitor, evaluate, assess and prescribe Internal Audit-related activities. The significance of this qualification is that it focuses the qualifying learner on the high level of theoretical engagement and intellectual independence, as well as the ability to relate knowledge to a range of contexts to be able to undertake professional or highly- skilled work.

The qualification will include conducting and reporting a mini-research project under supervision on contemporary issues in internal auditing affecting the industry. The learners will have to undertake a mini-research project as part of work-integrated learning requirement.

Rationale

The internal audit profession is a fast-growing profession in South Africa and internationally. A host of corporate governance guidance or regulation documents (e.g. King Report on Governance), as well as legislation such as the Public Finance Management Act (PFMA) and the Municipal Finance Management Act (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. Secondly, these guidance and legislation added significantly to establishing sound governance principles; with internal auditing seen as one of the cornerstones of a sound governance framework. Thirdly, although these guidance and legislation have improved governance, it has also brought about stringent corporate governance responsibilities on organisations. Internal auditing can add much value to simplify the processes and also ensure that organisations adhere to the guidance and legislation. To provide these services to an organisation, both assurance and advisory services are provided to senior management and boards of organisations. This added responsibility towards sound corporate governance as well as the compulsory or advisory establishment of an internal audit function within organisations has led to the currently being an acute shortage of competent internal auditors to satisfy the demand, especially on the senior levels. Furthermore, as the world is becoming more and more technology-driven, this shortage of competent internal auditors is even further highlighted with a need for internal auditors with information systems (IS) experience.

As mentioned above, in the public service, the promulgation of the Public Finance Management Act and the Municipal Finance Management Act has been a strong driver of the demand for Internal Auditors. These pieces of legislation make it a legal requirement for all national, provincial and local government entities, including all public entities, to establish internal audit functions. In the private sector the key corporate governance codes to require the establishment of an internal audit as one of the pillars of corporate governance, are the three King Codes on Governance issued by the Institute of Directors in 1994, 2002 and 2009. Furthermore, certain acts require the establishment of an internal audit function, such as the Banks Act and the Medical Schemes Act whereas the JSE requires an internal audit function as a listing requirement.

The PFMA and MFMA focus on the implementation of sound governance principles in the public sector. The lack thereof was again highlighted in the report on the state of municipal finances for the 2011-2012 year, released by the Auditor-General of South Africa (AGSA) in August 2013. Only nine of the 278 municipalities received unqualified audit reports. The AGSA's reports on provincial and national departments are also not encouraging. For the private sector, South Africa has also had its share of corporate failures. These weaknesses highlight the need for social and economic transformation in South Africa. Furthermore, external auditors often rely on the work of internal auditors, provided that they are satisfied that internal audit engagements are conducted in compliance with international internal audit standards.

The rationale for this qualification is to stem the dearth of knowledgeable and competent Internal Auditors in the country, especially internal Auditors with a sound knowledge and skills in IS auditing. Two professional bodies address this need. Firstly, internal auditing is a profession with a professional body overseeing all internal audit activities, including internal audit education. In South Africa, the professional practice of internal auditing is overseen by the Institute of Internal Auditors of South Africa (IIA-SA). Secondly, ISACA, previously known as the Information Systems Audit and Control Association, is an international professional association focusing on information systems governance, including IS auditing and control. The South African chapter is working closely with various tertiary institutions to ensure that learners are introduced on various levels to the IS environment. The aim of this Postgraduate Diploma is firstly to prepare learners to comply with the competencies prescribed by the IIA-SA for internal auditors (learnership - professional internal auditor level), and secondly to introduce the concept of IS auditing to a greater extent.

The development of this qualification is in line with the government policies to provide necessary professional career and learning pathways for learners to obtain access to higher education qualifications in internal auditing, i.e. the MCom in Internal Auditing. As a third level qualification, it will target learners with an Advanced Diploma in Internal Auditing as well as working professionals. Upon completion of this qualification, learners will be able to seek employment or internship (IIA-SA Learnership professional internal auditor level) opportunities in any internal audit function in either the public, private or professional sector; either focussing on internal auditing in general or focussing on becoming an IS Auditor.

Recognition of Prior Learning (RPL)

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

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.

Through RPL, learners will be granted exemption from relevant modules should they be able to demonstrate competence in the knowledge, skills, values and attitudes implicit in the qualification. Learners may also be admitted to this qualification through RPL.

Entry Requirements

The minimum entry requirement for this qualification is

• Advanced Diploma in Internal Auditing, NQF Level 7.

Or

• Bachelor of Commerce, NQF Level 7.

Or

• Bachelor of Technology with Financial Accounting, Internal Auditing and Information Systems Auditing, all at NQF Level 7.

This qualification consists of the following compulsory modules at National Qualifications Framework Level 8 totalling 120 Credits.

Compulsory Modules, 120 Credits

• Advanced Internal Auditing A, 12 Credits.
• Advanced Internal Auditing B, 12 Credits.
• Information Systems Auditing A, 12 Credits.
• Information Systems Auditing B, 12 Credits
• Organisational Behaviour A, 12 Credits.
• Advanced Business Communication A, 12 Credits.
• Fraud Examination B, 12 Credits.
• Research in Auditing B, 12 Credits.
• WIL in Auditing A (simulated and project-based learning), 12 Credits.
• WIL in Auditing B (simulated and project-based learning), 12 Credits.

1. Demonstrate knowledge of advanced internal audit, advanced information systems and risk management concepts. Apply fraud examination and ethics, and research methodologies, methods and techniques relevant to internal auditing within various sectors.
2. Use organisational behaviour and management concepts to manage the internal audit function and prepare resource allocation within multiple sectors.
3. Understand the complexities and uncertainties of selecting and applying internal audit, information systems, risk management, and fraud examination and ethical procedures and techniques in solving problems within the dynamics of various sectors.
4. Use internal audit, information systems, risk management, and fraud examination and ethics skills to identify, analyse, evaluate and address complex internal audit activities within various sectors.
5. Communicate and report effectively to internal audit stakeholders, offering creative insights, rigorous interpretations and solutions to problems and issues appropriate to the internal audit activities performed.
6. Manage the internal audit function based on the understanding and relationship between internal auditing, information systems, risk management, and fraud and ethics within various sectors.
7. Apply, in a self-critical manner, learning strategies which effectively address own professional and ongoing learning needs and those of others within various sectors.

Associated Assessment Criteria for Exit Level Outcome 1

• Explain, evaluate and apply advanced internal audit, information systems, risk management concepts, fraud examination and ethics concepts.
• Explain and apply research methodologies, methods and techniques within the context of internal auditing.

Associated Assessment Criteria for Exit Level Outcome 2

• Discuss organisational behaviour.
• Explain managing of the internal audit function.
• Discuss resources allocation, planning and reviewing as part of managing an internal audit function.

Associated Assessment Criteria for Exit Level Outcome 3

• Select, and apply appropriate procedures, processes and techniques in internal audit activities, Information systems audit activities, risk-based internal audit activities.
• Select and apply fraud examination and ethical procedures, processes and techniques in investigations.

Associated Assessment Criteria for Exit Level Outcome 4

• Identify, analyse, evaluate and apply internal audit skills to perform complex internal audit activities, information systems audit engagements and risk-related internal audit activities.
• Apply fraud examination and ethical skills to perform complex forensic investigations.

Associated Assessment Criteria for Exit Level Outcome 5

• Present and communicate effectively insights, interpretations and problem using business communication to internal audit stakeholders.

Associated Assessment Criteria for Exit Level Outcome 6

• Implement the internal audit function in relation to internal auditing, information systems, risk management, and fraud and ethics within various sectors.

Associated Assessment Criteria for Exit Level Outcome 7

• Critically evaluate, access and apply learning strategies against given criteria to effectively address own learning needs and those of others within various sectors.

Integrated Assessment

In order to achieve the stated Exit Level Outcomes, Integrated Assessment will take the form of various Formative and Summative Assessments. 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 qualification. In addition to these assessments, work integrated learning will be part of formative development in a simulated form.

Formative

• Interim presentations.
• Continuous feedback and critique on work in the qualification.
• Class tests.
• Written exercises.
• Presentations.
• Group assignment.
• Individual written assignments.
• Essays.
• Research assignments.

Summative

• Examination.