Investigating the challenges of an audit software at eThekwini municipality internal audit unit.

Abstract

The increasing reliance on technology in auditing has raised concerns regarding the efficiency and effectiveness of audit processes within public institutions. This study investigates the challenges associated with audit software at eThekwini Municipality’s Internal Audit Unit, examining its impact on audit efficiency, data accuracy, compliance, and overall performance. The purpose of the study is to assess whether the absence or limitations of auditing software affect internal audit operations and to determine the potential benefits of its implementation. A quantitative research approach was employed, utilizing a structured questionnaire distributed online to internal auditors. Data was analysed using descriptive statistics, including correlation and regression analysis, to evaluate relationships between key audit performance indicators and software usage. The findings provide insights into the necessity and effectiveness of audit software in enhancing internal audit functions. Initially, the study highlighted notable deficiencies present in the unit. These included a lack of real-time monitoring capabilities, inadequate integration of data analytics, and antiquated manual processes that impede the speed and accuracy of audits. Secondly, the study evaluated the efficacy and efficiency of the internal audit unit’s operations by examining how closely these operations adhered to accepted auditing standards and how well they served the municipality's goals. The research found areas where the unit had successfully carried out its mandate, such as regulatory compliance and the detection of financial anomalies. But the study also identified challenges, such as a lack of funding, a lack of ongoing professional development for employees, and possible problems with the thoroughness and timeliness of audit findings. The study concluded by examining the possible advantages of the internal audit unit implementing auditing software. According to the study, the unit's efficiency might have increased by putting such software into place because it would automate repetitive processes, improve the speed and accuracy of data analysis, and allow for continuous monitoring and real-time auditing. The study consisted of a sample size of 45 internal audit unit employees of eThekwini municipality. The employees from all levels of the unit were selected start from the Chief Audit Executive (head of unit), deputy heads (internal audit), senior audit managers, internal audit specialists, senior auditors and internal auditors.