Examination of the expectations of the Board of Directors regarding Internal Auditing in State-Owned Enterprises in Zimbabwe

Abstract

Internal auditing is pivotal in promoting accountability, transparency, and effective governance in State-Owned Enterprises (SOEs). Historically, SOEs in Zimbabwe have faced systemic institutional challenges, including the mismanagement of public funds, financial irregularities, and operational underperformance. This study examines the expectations of Boards of Directors regarding internal auditing in Zimbabwean SOEs, focusing on the extent to which boards rely on internal auditors for risk management, regulatory compliance, and operational oversight. Employing a qualitative multiple-case study research design, semi-structured interviews were conducted with fifteen board members and audit committee chairs across five selected public enterprises in the energy, transport, and utilities sectors. Thematic analysis reveals that while boards expect internal auditors to provide objective, strategic assessments to safeguard public assets, their effectiveness is heavily constrained by structural competence gaps, restricted resource allocations, and compromised reporting independence. The study recommends the strict enforcement of dual-reporting frameworks under the Public Entities Corporate Governance Act [Chap 10:31], the institutional ring-fencing of audit budgets, and a operational shift toward forward-looking, risk-based auditing to align internal audit outputs with strategic board expectations. Keywords: Internal audit, State-Owned Enterprises, Board expectations, corporate governance.