The University of KwaZulu-Natal (UKZN) community perception of the internal audit and enterprise risk management process.

Abstract

Internal Audit and Enterprise Risk Management processes play a pivotal role in any organisation’s system of internal control. These processes encourage accountability and strengthen business processes by ensuring that risks associated with strategic and operational objectives of the organisation are identified, assessed for likelihood of occurrence and impact they may have in its operations. Enterprise Risk Management process prioritize risks and ensure that management build a strong system of internal controls to address them, whereas Internal Audit process evaluates the adequacy of the design and effectiveness of controls to address identified risks. The University’s mandate to deliver education to societies makes them fountains and custodians of body of knowledge, consequently are accountable to different stakeholders, in the main Students, DHET, and the Public to deliver the service as predefined in National Development Plan of 2012. It is therefore inevitable that a strong system of internal controls is embedded in the University systems and governance processes in order to ensure achievement of its mandate, hence Internal Audit and Enterprise Risk Management process are the major control measures that management need to adopt. This pronouncement aligns to best practice on Corporate Governance, which articulates that in cases where transgressions are found in the organisation, it would always be attributable or as a consequent of a weak system of internal control environment. Though huge resistance to accept the Internal Audit and Enterprise Risk Management process is experienced from the University Community by the custodians of these control measures, which is what triggered the study, management of the institution and those in charge of governance remains accountable to ensure a strong control environment is set. The study aimed to investigate the University Community perception of the Internal Audit and Enterprise Risk Management process. This was achieved through interrogating the awareness of the University Community of the Internal Audit and Enterprise Risk Management; acceptance of Internal Audit and Enterprise Risk Management by the University Community; factors influencing the University Community perception of Internal Audit and Enterprise Risk Management. The results of the study informed appropriate recommendations which aimed to benefit the University Community, Internal Audit function as well as Enterprise Risk Management Custodians. It shared light by revealing factors influencing the perception of the Internal Audit and Enterprise Risk Management processes. Respondents in the University Community included Managers, Directors, Executive Management; Internal Audit Services staff members as well as Enterprise Risk Management staff members. A mixed method was used for data gathering. The researcher needed to experience and interrogate different zones of respondent’s territory, quantity versus the emotional hence quantitative and qualitative research methods.