Abstract
The South African telecommunications industry has been experiencing constant
transformation as a result of ongoing developments in technology. Over the years, the
top telecommunications companies have invested billions into information technology
(IT) infrastructure in order to expand their portfolios to meet the growing demands of
a digital hungry society. Considering the nature of their business activities and their
heavy reliance on IT, telecommunications companies are exposed to significant IT
governance issues which may affect the sustainability of their business activities. In
order to effectively address these issues, the governing bodies need to ensure that
strong IT governance is implemented. Governing bodies also need to communicate
these issues to external stakeholders, who require such information to make informed
assessments of the companies’ operations.
The disclosure of IT governance information is, according to King IV, a regulated
requirement for JSE-listed companies. However, it is unclear whether these IT
governance disclosure requirements are sufficient to satisfy stakeholder expectations.
This study evaluates the IT governance disclosures of the top three
telecommunications companies according to the stipulations of King IV. It also
benchmarks these disclosures against the five IT governance focus areas and
stakeholder values (Strategic Alignment, Value Delivery, Risk Management, Resource
Management and Performance Management) established by the IT Governance
Institute (ITGI) and the Information Systems Audit and Control Association (ISACA).
This comparison aims to determine whether the King IV IT governance disclosures
are sufficient to satisfy stakeholder expectations. The results were gathered by
analysing the annual integrated reports of the top three telecommunications
companies.
The results of the study revealed that none of the top three selected
telecommunications companies in were fully compliant with the IT governance
disclosure requirements of King IV. The findings did confirm, however, that the IT
governance requirements of King IV were aligned to the five IT governance focus
areas and to stakeholder values in terms of the ITGI and ISACA. Companies needing
clarity on specific items of disclosure may therefore refer to the five IT governance
focus areas and stakeholder values by the ITGI and ISACA.
M.Com. (Computer Auditing)