Die rol van interne oudit en 'n ouditkomitee van SENWES Beperk

Abstract

After the release of the King Report in 1992, certain guidelines were proposed with which internal audit divisions and audit committees should comply. - Internal audit The internal audit division of Senwes Limited must be judged by the standards of the King Report. The role played by Senwes Limited's internal audit division must also be borne in mind when determining the efficiency of this division. The obligations of the board of directors and management of Senwes Limited in establishing a competent internal audit division, should subsequently be determined. - Audit committee Senwes Limited established an audit committee in September 1996. The audit committee must be judged by the requirements of the King Report as well as by good audit committee practices. The research done was aimed at determining whether the audit committee is effective and whether the requirements of the King Report are being met. The main objective of the study was to determine the bearing of the King Report on the role and function of both the internal audit division and the audit committee. Another objective was to develop models by which the internal audit division and the audit committee of Senwes Limited could measure themselves. Firstly, literature studies were undertaken in respect of the following :

- the role and function of an internal audit division; - the role and function of an audit committee; and - specific references in the King Report to internal audit and audit committees. Secondly, the chief internal auditor and chairman of the audit committee were interviewed. The questions put to them were aimed at determining whether the guidelines of the King Report are being followed . An attempt was also made to measure the role and functions of both the internal audit division and the audit committee on the basis of proven literature. It had to be determined as well whether the necessary standards and requirements were being met, so models could be developed against which the board and management of Senwes Limited could measure the activities of the internal audit division and the audit committee. The interview with the chief internal auditor indicated that the internal audit division is in line with the expectations of the board and management. The internal audit division also complies with internal audit standards, functions effectively and meets the requirements of the King Report. The interview with the chairman of the audit committee indicated that the audit committee of Senwes Limited follows the guidelines of the King Report and that it functions effectively. Two models were developed for the internal audit division and the audit committee, based on the requirements of the King Report, relevant literature and the interviews. It is believed that the objectives of the study have been reached. The models which were developed should be of value to the board and management of Senwes Limited as these will enable them to judge both the internal audit division and the audit committee by the standards and guidelines set for effective audit committees and internal audit divisions.