Postgraduate Diploma in Internal Auditing

Purpose

The purpose of the Postgraduate Diploma in Internal Auditing is to prepare qualifying learners for their role as professional internal auditors in the workplace. It is designed to equip qualifying learners with the essential knowledge and specific skills to be competent in performing a variety of internal audit engagements. This will be achieved through a curriculum that is aligned to the requirements of the Institute of Internal Auditors (IIA), with reference to the International Professional Practices Framework (IPPF) as stipulated by the institute for the success of the internal audit professional. The qualification includes studies in specialised fields of Internal Auditing and Accounting.

The qualification will enable learners to gain new knowledge and equip learners with research knowledge and skills for them to investigate internal auditing problems, present reports, prepare engagements within the industry, and prepare them for further studies.

Rationale

This qualification is designed for entrant managerial internal audit professionals and those who successfully complete the Advanced Diploma in Internal Auditing or any equivalent auditing/accounting qualification. The qualification prepares qualifying learners for their role as professional internal auditors in the workplace. It is designed to equip qualifying learners with the essential knowledge and specific skills to be competent in performing a variety of internal audit engagements. The qualification is aligned with the competency framework of the Institute of Internal Auditors (IIA) to ensure that it meets the requirements of the industry and contributes to the employability of qualifying learners. Upon completion, graduates will be able to register with the IIA for professional training programmes. This will be achieved through a curriculum that is based on the competencies required by the IIA. Qualifying learners will be able to take up internal auditing managerial positions in any industry, as well as lead internal audit departments as Chief Audit Executives (CAEs). This will be achieved through a curriculum that is based on the competencies required by the IIA. The qualification equips learners with the appropriate knowledge to take part in the Certified Internal Auditor (CIA) examination of the Institute of Internal Auditors (IIA), which is the global body of the profession, as well as the South African institute's qualifications that all internal auditors entering the profession should obtain.

Graduates will be able to register with the IIA for the Professional Internal Auditor Training Programme.

The qualification will also provide an opportunity for incumbent internal audit employees, especially in the public sector, where legislation requires the establishment of an internal audit function in every public sector entity, to obtain a requisite qualification.

In its 2012-2014 report, the Financial and Accounting Services Sector Education and Training Authority (FASSET) highlighted that the shortage of qualified internal auditors in the public sector is generally worse off than that of the private sector. This finding is corroborated in the 'Status of Demand for Internal Auditing in South African National Government Departments' report (2014). The importance of the internal audit function is demonstrated in the report, which indicates that, on average, national departments allocate nearly 65% of the annual assurance and risk management budget to internal auditing activities. These public sector departments must often outsource part of their internal audit functions due to a shortage of competent internal auditors, particularly those with specialised technical expertise.

Due to the specialisation that the proposed qualification offers, qualifying learners will be able to benefit in the following ways:

• alignment to a professional body provides learners with increased employability, as they will be able to become eligible for entry into the relevant specialised professional training to obtain certification as internal auditors.
• the specialised disciplinary knowledge that is obtained in the Postgraduate Diploma provides a suitable foundation that will address the skills gap reported amongst existing internal auditors.
• learners will be able to integrate their knowledge in all specialised areas of their course, including Internal Auditing, Information Systems Auditing, and Accounting Information Systems, to obtain a holistic picture of their discipline and can suitably apply their knowledge using practical methods.

Recognition of Prior Learning (RPL)

RPL in this qualification will relate to gaining access to the qualification and/or credits/advanced standing as described in institutional guidelines.

The RPL process is multidimensional and multi-contextual in nature, aimed at the individual needs of applicants and is handled in accordance with an institutional RPL policy by a unit dedicated to this activity.

Candidates will be expected to provide a cumulative portfolio of evidence containing the relevant work exposure as required, signed by the line manager, to prove experience in this. In addition to the assessment based on the submitted documentation, the following assessments are arranged: by the RPL representative:

>A subject-specific written invigilated or oral assessment on the outcomes of a specific subject (for advanced standing cases) if a candidate wants to apply for exemption for certain subjects.

RPL in this qualification will relate to gaining access to the qualification and/or credits/advanced standing as described in institutional guidelines.

RPL for access

• RPL is applied for learners who do not have formal academic achievement to gain access to the qualification.
• Advanced standing may be granted.

RPL for exemption from modules

• Learners may apply for RPL to be exempted for modules that form part of the qualification.
• For a learner to be exempted from a module, the learner needs to provide sufficient evidence in the form of a portfolio that demonstrates that competency was achieved for the learning outcomes that are equivalent to the learning outcomes of the module.

RPL for credits

• Credit is granted for RPL when in the assessment of the institution's selection committee, the learner's knowledge and skills correspond to the learning outcomes of the qualification or specific module for which credit is applied.

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

• A relevant qualification in the related field, NQF Level 7.

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

Compulsory Modules, Level 8,120 Credits

• Research Project in Internal Auditing, 24 Credits.
• Internal Audit Practice, 24 Credits.
• Advanced Information Systems Auditing, 24 Credits.
• Managerial Accounting and Finance, 24 Credits.
• Performance Strategy and Engagement, 12 Credits.
• Risk Management and Governance, 12 Credits.

1. Demonstrate a practical and critical understanding of the international Professional Practice Framework (IPPF) framework and its importance in auditing engagements.
2. Apply advanced financial accounting concepts, including, but not limited to, public sector accounting, foreign currency transactions, government grants, investment properties.
3. Collect, analyse, organise, and evaluate audit evidence.
4. Identify and solve complex internal auditing problems.
5. Perform advanced business process reviews by sorting, evaluating, analysing, and interpreting given information to assess a business process within a given case scenario.
6. Evaluate the internal audit process from planning to monitoring stages, with specific attention on communicating results and monitoring stages.
7. Identify and address ethical issues within contexts of audit engagements; and the suitability of different ethical value systems in the internal audit practice.

Associated Assessment Criteria for Exit Level Outcome 1

• Provide a convincing justification of applying risk and risk management concepts in planning a risk-based audit engagement using the International Professional Practices Framework (IPPF) framework.
• Provide a convincing justification of the risk-based audit methodology describing in detail the process to be adopted using the IPPF framework.
• Interpret the nature of inherent and residual risks and identify typical internal and external influences of such risk categories.
• Describe the IPPF to support the analysis of an internal auditing engagement.

Associated Assessment Criteria for Exit Level Outcome 2

• Apply contemporary accounting techniques to solve problems within internal auditing environments.
• Apply accounting concepts with skills to conduct an effective audit engagement interview with stakeholders.
• Coherently present different stakeholder audit reports and recommend stakeholder relationships that will enhance financial reports.

Associated Assessment Criteria for Exit Level Outcome 3

• Perform various audit engagements, including e-commerce, forensic, corporate governance, environmental, risk-based.
• Analyse various forms of financial risks and interpret what the consequences of poor risk management are for business environments.
• Evaluate coherently the compliance of an internal audit function to the International Standards for the Professional Practice of Internal Auditing (ISPPIA) and the Code of Ethics, exemplifying aspects of compliance and non-compliance, and providing recommendations for improvement.

Associated Assessment Criteria for Exit Level Outcome 4

• Use a range of skills to identify, analyse, and address complex problems in an internal auditing environment.
• Perform a risk management assessment and present an example of auditing risk management structures within the business.
• Evaluate operational risks and internal controls of a given business environment.
• Demonstrate independent life-long learning through well-developed learning skills management of problem-solving.

Associated Assessment Criteria for Exit Level Outcome 5

• Perform assurance and consulting engagements by analysing and evaluating risks and controls; as well as the effectiveness of processes in various business cycles at an advanced level considering Financial Accounting, Management Accounting, Tax, Legislation, and internal control requirements within various scenarios.
• Critically review information gathering, synthesis of data presented, and evaluate processes by correctly presenting an internal auditing example.
• Coherently present an assessment of the internal audit function's role within the strategic position and management of the organisation.
• Accurately criticise an organisational strategic plan and formulate suggestions for improvement of governance

Associated Assessment Criteria for Exit Level Outcome 6

• Present an overview and evaluate the internal audit process from planning to monitoring within a case study context.
• Prepare and interpret well-written, clear, concise, and understandable audit findings within the format of an internal audit report.
• Coherently evaluate a given internal audit report to identify shortcomings and propose improvements.
• Correctly analyse given audit findings to assess residual risk. Demonstrate the ability to explain and communicate the effect and impact of residual risk on the business and the underlying responsibility thereof in a tactful and clear manner.
• Present and propose solutions to cases where implementation of recommendations did not take place.

Associated Assessment Criteria for Exit Level Outcome 7

• Apply ethical values in compiling literature and current research in fields of internal auditing, accounting and managerial accounting
• Display a coherent and critical reflection of ethical research methodologies, techniques and technologies relevant to research in the fields of internal auditing.
• Coherently relate theory to auditing practice and vice versa and think epistemologically.
• Correctly conceptualise, design, and implement a research project that addresses a practical complex problem in the fields of internal auditing and financial accounting.