Why Organisational Readiness Remains the Biggest Challenge in Governance Transformation
The introduction of the Global Internal Audit Standards has prompted organisations across South Africa to revisit their methodologies, governance frameworks, reporting structures and strategic priorities. Internal audit functions have reviewed charters, updated plans and strengthened their approaches to align with a new era of professional standards.
But as delegates at the 2026 CAE Conference discovered, the real challenge is not adopting new standards.
The real challenge is ensuring organisations are ready for them.
During a thought-provoking panel discussion featuring Lerato Mosoetsa of SALGA, Moseme Matlala of the National Research Foundation and Dr Bongani Mbewi of the Department of Science, Technology and Innovation, one message echoed throughout the session:
Strong standards cannot compensate for weak foundations.
The Standards Are Not the Problem
Whenever new standards are introduced, organisations naturally focus on implementation.
Documents are revised. Training programmes are rolled out. Governance structures are updated. Compliance checklists are developed.
Yet despite these efforts, many organisations still struggle to achieve the outcomes they expect.
Why?
Because implementing a framework is one thing.
Embedding it into an organisation’s culture, governance structures and decision-making processes is something entirely different.
Drawing on her experience within local government, Lerato Mosoetsa highlighted that many of the challenges associated with implementing new standards are not caused by the standards themselves. Instead, organisations often contend with underlying governance issues, unclear reporting structures, limited understanding of internal audit’s role and challenges relating to independence and objectivity.
It is a reminder that before organisations pursue transformation, they must first ensure that the fundamentals are firmly in place.
Without strong foundations, even the best frameworks struggle to deliver meaningful results.
Governance Comes Before Compliance
One of the most important themes emerging from the discussion was the need for organisations to prioritise governance before compliance.
The strength of any internal audit function is influenced not only by its technical capability but also by the quality of the governance environment in which it operates. Boards, audit committees, executive management and assurance providers all play a role in enabling effective governance.
Where these structures are functioning effectively, internal audit is empowered to create value, provide objective assurance and contribute to organisational improvement.
Where governance structures are weak or poorly understood, internal audit often finds itself struggling to achieve its full potential.
The panel stressed the importance of stakeholder education and engagement throughout the implementation journey. Organisations that understand the role and value of internal audit are significantly better positioned to support transformation initiatives and realise the benefits of new standards.
Transforming, Not Merely Complying
A powerful perspective came from Moseme Matlala, who described the implementation of the Global Internal Audit Standards as a transformation journey rather than a compliance exercise.
This distinction is more important than it might first appear.
Compliance asks whether an organisation has updated its documentation.
Transformation asks whether behaviours, processes, capabilities and governance practices have improved.
At the National Research Foundation, the journey began with a detailed gap analysis to identify areas requiring improvement. From there, strategic documents, methodologies and governance structures were reviewed and enhanced in a structured and deliberate manner.
Perhaps most significantly, the organisation recognised that meaningful implementation could not happen overnight.
Improvement had to be approached as a continuous process rather than a once-off project.
This lesson extends beyond internal audit.
Whether implementing governance frameworks, introducing artificial intelligence, adopting new technologies or pursuing organisational reform, sustainable transformation requires commitment, patience and a long-term vision.
Measuring Value Has Never Been More Important
One of the notable developments introduced by the new standards is the increased emphasis on demonstrating value.
Historically, many internal audit functions have focused on outputs such as completed audits, issued reports and implemented recommendations.
The profession is now moving beyond activity-based measurement.
According to Dr Bongani Mbewi, internal audit functions must increasingly define performance measures that align with organisational objectives and clearly demonstrate the value they create.
This represents an important shift for the profession.
Stakeholders are no longer interested solely in what internal audit does.
They want to understand how internal audit contributes to improved governance, stronger controls, better decision-making and organisational success.
Functions that can clearly articulate and demonstrate their impact will continue to build trust and influence at board and executive level.
Leadership Is the Difference Maker
While governance frameworks and standards are important, the panel ultimately returned to a familiar truth:
Transformation is a leadership challenge.
Successful implementation depends on leaders who are willing to learn, adapt and bring others along with them. It requires organisations that invest in professional development, strengthen capabilities and embrace continuous improvement.
In an environment increasingly shaped by data analytics, artificial intelligence and evolving stakeholder expectations, standing still is no longer an option.
The organisations most likely to succeed will not necessarily be those with the most sophisticated methodologies.
They will be those with leaders who understand that lasting transformation begins with people.
Strong Standards Need Strong Foundations
The Global Internal Audit Standards represent an important milestone for the profession.
- They provide direction.
- They establish expectations.
- They promote consistency and quality.
- But they cannot create accountability.
- They cannot strengthen governance on their own.
- And they cannot transform organisations.
Those outcomes depend on leadership, organisational readiness, governance maturity and a commitment to continuous improvement.
The discussion served as a timely reminder that the success of any transformation initiative depends less on the framework being introduced and more on the strength of the foundations already in place.
Because in the end, strong standards can only be as effective as the organisations that implement them.
