Abstract
Internal audit plays a key role in organisations through improving corporate governance practices. However, its role within organisations is limited to internal use. Studies highlight attempts to disclose specific information in annual internal audit reports. Despite this, these studies generally express disappointment with the disclosures made and argue that the disclosed information does not adequately inform the public about the work and activities of the internal audit function. Against this background, this study investigates the internal audit disclosure practices in annual reports of South African State-Owned Entities (SOEs). The study applies a qualitative content analysis in order to achieve its objectives. The qualitative text applicable to internal audit is collected from the latest available annual reports using codes derived from International Professional Practice Framework Standards. Regardless of the absence of a legislative requirement for mandatory internal audit disclosures, the findings suggest that attempts are made to disclose specific information in annual internal audit reports. However, these disclosures vary across SOEs, and they contain very little recommended information. In addition, there is a lack regarding the extent of the disclosures made. As such, current internal audit disclosures might negatively affect accountability and transparency, internal audit accountability and diligence, external audit fees and deterrence of management misconduct. The study recommends that the government, together with other stakeholders, enact legislation enabling mandatory and uniform relevant internal audit disclosures. The findings from this study indicate the need for further research to inform the establishment of policy that requires mandatory internal audit guidelines for SOEs in South Africa...