Abstract
The internal audit role has evolved from mainly a compliance function to performing
advisory functions for senior management. The changing role can be attributed to
many factors, including complexities in business operations, regulatory requirements,
evolving stakeholder expectations, and technological advancements, the latter having
the most profound influence. The evolving role of internal auditors indicates that they
should be equipped to continuously improve their competencies while responding to
the changing environment. In 2020, the Institute of Internal Auditors (IIA) reviewed and
updated its Internal Audit Competency Framework (IACF), detailing the competencies
required for required for the success of an internal auditor in response to the changing
environment of the internal audit profession.
The objective of the study is to compare the competencies per the IIA framework and
global accounting literature to the competencies required by auditing firms as per their
advertised positions. The objective was explored through a qualitative analysis of the
IIA frameworks, public literature, and job advertisements. Job advertisements were
obtained from publicly accessible information published on databases and job portals
for the top nine auditing firms in South Africa. The study identified some common
competencies required by auditing firms, including communication and knowledge of
IIA standards, which are consistent with the IACF. There were also some
competencies recommended by the IACF, IIA studies and global accounting literature
that were not stipulated in recruitment positions: the evaluation of an organisation’s
social responsibility, sustainability, governance structures, and culture. Therefore,
auditing firms should consider reviewing the competencies required in job
advertisements to ensure that they stay abreast of the ever-changing internal audit
position. This will also help to ensure that auditing firms retain adequately skilled
internal auditors.
Keywords: Internal audit, competencies, auditing firms, IIA, competency framework.