An investigation of the challenges of implementing the risk based internal auditing (rbia) in the zna.

ABSTRACT

The investigation of the challenges of implementing the RBIA in the ZNA was prompted by the growing calls for effective, efficient and economic utilisation of the finite audit resources to achieve the most impact in terms of IA service. The objectives of the study were to identify the key tenets of a RM framework, determine the role of IA within the risk management (RM) framework, determine the adequacy of the RM framework of the ZNA, identify areas of significant risk, and suggest a RM model that is best suited to address the identified risks. The study was conducted in the ZNA King George 6 Barracks. A sample of 43 officers from the departments of Finance, Procurement, IT, Pay, Military Police and IA were chosen as respondents using purposive (judgmental) sampling techniques. Thirty-seven self-administered questionnaires and six personal interviews were used to gather data. Findings from the study revealed that the major challenges were to do with the absence of a documented and approved RM policy in the Army, lack of institutional structures for RM, decentralized RM processes not appropriately embedded within the existing hierarchical structures of the Army, and lack of consciousness on the part of the generality of members within the rank and file of their individual risk responsibilities. From the study, it was recommended that a RM policy framework be put in place, risk education and training form part of every solder‟s training syllabi and risk structures be established with clearly defined risk responsibilities. Above all, it was recommended that the AI implements RBIA in order to concentrate effort on areas of heightened risks.