A qualitative analysis of the internal audit function in the banking sector

  • Published December 22, 2016
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  • DOI
    http://dx.doi.org/10.21511/bbs.11(4-1).2016.07
  • Article Info
    Volume 11 2016, Issue #4 (cont.), pp. 161-168
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In South Africa, the financial sector contributes approximately 10.5% to the country’s gross domestic product (GDP). Although the 2007-2009 global financial crisis did not directly impact the domestic market, it threatened the profitability of the financial sector and triggered changes that affected the role of the internal audit function. In particular, stakeholders’ expectations from the function have significantly increased. Against this background, the study seeks to identify the key success factors of performing internal audit reviews of capital markets business areas within the big four South African banks. For this purpose, in-depth interviews with experienced internal auditors, risk managers and traders were carried out. The study suggests several implications and recommendations for the risk management, internal audit and audit committee functions that can also be adopted by interested parties from non-financial institutions.

Keywords: internal audit, value creation, skills, stakeholders, capital markets.
JEL Classification: G31, M42

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