This study examined the standing of the internal audit function in 30 of South Africa’s large listed companies as perceived by the chairs of their audit committees, their chief executive officers, chief financial officers, and chief operating officers, as well as the chief audit executives. The standing of the internal audit function in these 30 companies was based on the academic and professional qualifications profiles of the chief audit executives, the composition and qualifications of the internal audit staff complement, the independence of the function and the expectations that various stakeholders have of the function. The study reveals that the overall standing of the internal audit function in these 30 companies was perceived to be high. However, there are a number of concerning aspects that include the fact that most of the chief audit executives are qualified and registered South African Chartered Accountants (CA(SA)) and not holders of the Certified Internal Auditor (CIA) qualification. Additional concerns are that the chief audit executives’ reporting lines are not necessarily in line with currently perceived best practices; the stakeholders surveyed for this study held diverse views of the internal audit function; and in-house internal audit functions were viewed to be of a higher standing than those of outsourced functions. This study provides the internal audit profession with a scientifically researched benchmark of their status or standing in the eyes of their stakeholders and will enable them to measure changes to their status and effectiveness within their companies.

Effective investment strategies help companies form dynamic core organizational capabilities allowing them to adapt and survive in today's rapidly changing knowledge-based economy. This dissertation investigates three valuation issues that challenge managers with respect to developing business-critical investment strategies that can have significant impacts on firm performance and growth in the competitive, information-orientated business environment. Using firm-level data collected from Taiwan, this dissertation examines specific valuation issues that are vital in shaping not only firm performance but also competitive advantages in current knowledge-based economy: (1) investments in information technology (IT), (2) human capital, and (3) corporate governance. To address these three major managerial challenges relating to firm investment strategies, this dissertation focuses on investigating the impact of three sources of business value creation, including IT investment, workforce education, and Chief Audit Executive (CAE) turnover. The results of investigating service infrastructure in the banking industry support the idea that in today's complex, fast moving multichannel business environment, evaluation of the strategic value of IT must consider both the direct impact of individual channels and the complementary relationships between IT-based channels and the traditional branch channel while constructing an effective business strategy to align IT use with firm strategic objectives. The interdependence between channels found in this study has a significant effect on firms' short term profitability and long term market competition capability, suggesting that the true value of IT will be fully realized only when coupled with complementary investments in organizational resources. Second, results of examining investments in workforce and research and development (R&D) activities in IT industries indicate that firms with more highly educated workforces have, on average, better performance. Investment in R&D for improving innovation capability is positively associated with firm performance. More importantly, higher levels of workforce education moderate the impact of R&D investment on firm performance, confirming the hypothesized interdependency between workforce education and firm innovation capabilities. In other words, firms benefit more from investment in R&D activities when they have a higher level of educated workforce. An important strategic implication from the DuPont Analysis is that the complementarity between workforce education and R&D capital reinforces a firm's differentiation strategy. Finally, the results of analyzing CAE turnover in Taiwan public companies show that CAE turnover is positively correlated with executive turnover (Chief Executive Officer [CEO] and Chief Financial Officer [CFO]) and financial restatements, which are commonly viewed as a signal of a troubled business or failure. The study also shows that CAE turnover has a negative impact on contemporaneous and future firm performance, suggesting that, to some extent, changing the head of the internal audit function conveys a negative signal to the market regarding a firm's performance. Given that the CAE monitors and assesses enterprise risk practices, the findings of this study suggest that CAE turnover could be used as an indicator of business volatility and potential business risk. The passage of the governance law which improves the quality of a firm's internal control system is found to reinforce the signaling role of CAE turnover and improve firm performance. The results of this dissertation provide important strategic insights regarding the factors managers should consider when making investment choices that are expected to align with a firm's long term development and performance. This dissertation complements literature in managerial accounting and information systems, particularly contributing to business value of IT investment, human capital, and internal audit research streams. It also addresses regulatory implications for policy makers such as regulating relevant disclosures of company information for interested parties and developing a regulatory environment that minimizes regulatory barriers which can suppress businesses and economy growth. / Business Administration/Interdisciplinary

Performance evaluation of internal auditing departments is extremely important as organisations depend on the advice and assurance they obtain from these department. Therefore, this study seeks to determine the perceived most relevant and appropriate performance measurement system (PMS) used to evaluate the performance of internal auditing departments. The determination of such a PMS may lead to effective performance measurement, meeting and exceeding stakeholders’ expectations, and achieving strategic objectives. Questionnaires were distributed to organisations that hold an internal auditing department within the regions of Cape Town, South Africa and Windhoek, Namibia. The Statistical Packages for Social Sciences (SPSS) tool was used to analyse the data. The results obtained from the survey reveal that the most frequently used PMS to evaluate the performance of internal auditing departments is the Balanced Scorecard. The results also indicate that the Chief Audit Executive (CAE)/internal auditing managers are of the opinion that stakeholders expect the PMS of Internal Audit to assess the effectiveness and efficiency of their department. The CAE/internal auditing managers are also of the opinion that stakeholders expect the PMS to measure the competency of internal auditing departments and ensure that these departments adhere to the Code of Ethics, International Standards for the Professional Practice of Internal Auditing (ISPPIA), and apply the risk-based approach to their operations. The implications of this study contribute to identifying the PMS perceived to be the most relevant and appropriate to evaluate the performance of internal auditing departments. This study has affirmed that the Balanced Scorecard is perceived to be this PMS for effective and efficient performance evaluation of internal auditing departments. Despite the Balanced Scorecard being the effective and efficient PMS for internal auditing departments, it is not utilised properly to make provision for measures focusing on the assessment of risk management processes, internal audit control, and governance.