AUI4861/0/2024

Advanced Internal Audit Practice

AUI4861

Year module

Department of Auditing

IMPORTANT INFORMATION
Please register on myUnisa, activate your myLife e-mail address and make sure
that you have regular access to the myUnisa module website, as well as your
group website.

Note: This is a blended module and therefore it is available on myUnisa. However, in

order to support you in your learning process, you will also receive some study
material in printed format.

BARCODE
 ASSIGNMENT 03: ESSAY-TYPE QUESTIONS

DATE OF SUBMISSION
Second semester: 05 AUGUST 2024 @ 19h00

This declaration holds you accountable for completing your assignment on your own.
PLAGIARISM DECLARATION:

By submitting AUI4861 assignment 03, I declare that:

 I have read the Unisa Students’ Disciplinary Code;
 I know what plagiarism is, that plagiarism is wrong and that disciplinary steps can be
taken against me if I am found guilty of plagiarism;
 This assignment, submitted by myself, is my own work and that I have referenced all
the sources that I have used;
 I have not allowed any other student to copy my work;
 I know that if I am found to be in violation of this declaration, I will receive 0% for the
assignment involved.

Please note: You do not have to submit the declaration. By submitting any AUI4861
assignment, you automatically declare that you adhere to all the above with regard to the
specific assignment.

QUESTION 1 30 marks
For this assessment, you need to review Sasol’s Integrated Report 2023.

SASOL Integrated
Report 2023.pdf

You are the CAE of Sasol. At the executive committee (EXCO) meeting, the chairperson of the
audit committee is still uncertain about the concept of integrated reporting, the need for it and
the type of assurance internal audit can provide in terms of integrated reporting (IR). You provide
the following roles as examples to the audit committee:

a) Giving assurance on the IR processes.

b) Championing the establishment of IR.
c) Challenging the organisation’s reporting strategy.
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 AUI4861/0/2024

d) Setting materiality levels.

e) Accountability for IR.
f) Monitoring progress against the targets set by those in charge of governance.
g) Facilitating the design of a systematic approach to IR.

REQUIRED Marks

1.1 Discuss the concept of integrated reporting, the need for it and essentially what 5
it entails.

1.2 From SASOL’s integrated report, list the stakeholders of SASOL. 5

1.3 Integrated reporting uses triple bottom line reporting and the six capitals in 9
their reporting. From SASOL’s integrated report, list three reported items each
for people, profit and planet.

1.4 SASOL provides integrated reports and sustainability reports. Discuss how 4
integrated reports are different from sustainability reports.

1.5 For the abovementioned roles (a-g), classify each role as one of the following: 7
 Core internal audit role, or
 Legitimate internal audit role with safeguards, or
 Roles internal audit should not undertake.

QUESTION 2 20 marks
You are the newly appointed CAE for Sharpe Solutions (Pty) Ltd. You want to evaluate the
effectiveness of their existing internal audit function (IAF). As a point of departure, you thought it
would be appropriate to find out how the IAF was established. From your meeting with the Chief
Executive Officer (CEO) of Sharpe Solutions (Pty) Ltd, the following points were noted:

From your meeting with the Chief Executive Officer (CEO) of Sharpe Solutions (Pty) Ltd, the
following points were noted:

 The IAF has been in existence for ten months.

 The IAF reports to the CFO functionally and the CEO administratively.
 The IAF only undertakes projects as instructed by the CEO or the CFO, because the IAF
does not have plans, guidelines, or procedures in place.
 The IAF consists of seven employees (consisting of two managers and five auditors) who
have four laptops and one printer, which is shared by the internal audit staff. The audit
staff mainly use MS Word and Excel for their working papers and reports.

Due to the recent establishment of the IAF and your appointment, you as the CAE want to market
the IAF.

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REQUIRED Marks
2.1 Based on the above information, you are required to critically evaluate the 15
existing IAF against and recommend improvements to fix the deviation, as per
the Global Internal Audit Standards.

Structure your answer in the following format:

Current deviation of Recommendation as per Global Internal

Sharpe Solutions (Pty) Ltd Audit Standards (GIAS)

REQUIRED Marks

2.2 Suggest five (5) tools/initiatives to market the IAF. 5

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UNISA 2024