Essentials of Internal Audit

1. Define Internal Audit, its scope and function within the company.
2. List the Internal Audit Standards constituting the framework of the Internal Audit activity.
3. Distinguish the types of Internal Audit assignments whether related to operational, compliance or financial Internal Audit.
4. Describe the Internal Audit fieldwork guidelines and apply techniques for risk identification, controls identification and controls testing.
5. Effectively select appropriate internal Audit test tools and list the advantages and disadvantages of each.
6. Identify best sampling techniques in an Internal Audit assignment whether in terms of sample size or sample selection.
7. Define fraud and recognize internal auditor’s responsibility upon fraud detection.

Delegates with some experience of auditing, junior auditors or professionals from finance or other departments looking to develop a focused and best practice approach and techniques to the internal audit function, supervisors and managers who are interested in updating, upgrading, and refreshing their knowledge in internal audit.

Overview to Internal Audit:

• The Functions of Management: Planning, Organizing, Implementing and Controlling
• Defining Internal Audit
• Internal Audit as a Function of Corporate Governance
• Reasons to Have an Internal Audit Function
• Distinguishing Internal from External Auditing
• Scope of Internal Auditing: The Internal Audit Charter
• Staffing the Internal Audit Function
• Role of Audit Committee
  • Defining the Audit Committee
  • Mandatory Provisions for an Audit Committee
  • Functions of the Audit Committee
  • Guidelines for Judging Effectiveness of Audit Committee

 Internal Audit Standards:

• Attribute Standards
• Performance Standards

Types of Internal Auditing:

• Performance Auditing
• Operational Auditing
• Financial Auditing: Accounting Cycles Audited by the Internal Audit Function 
• Compliance Auditing
• 20 Questions Directors Should Ask about the Internal Audit Function

Internal Audit Implementation: Fieldwork Guidelines:

• Information Gathered by Internal Auditors
  • 4 Qualities of Information
  • Sources and Nature of Information
  • Assessing the Degree of Persuasiveness
  • Types of Engagement Procedures
    • 15 Internal Audit Test Tools
    • Observing, Interviewing and Examining Records
    • Internal Audit Working Papers
      • Best Practices for Managing Working Papers
      • Retention Policies
      • Communicating Fieldwork Results and Recommendations
        • Legal Considerations for Communicating Results
        • 4 Attributes of an Observation or Recommendation
        • Disseminating Results and Exit Meetings

The Fieldwork Application - Application Guidelines:

• Defining Management Assertions
• Risk Assessment Process
  • Reason for Risk-Based Audit Planning
  • Techniques to Identify the Auditable Units
    • Criteria for Selecting Auditable Units
    • Scoring and Weighing Risks
  • Prioritize Risk and Develop Audit Plan
  • Methods to Generate List of Risks
  • Testing of Internal Controls
    • Design and Implementation of an Internal Control
    • Operating Effectiveness of an Internal Control
    • Tips and Tools for Audit Sampling

• Identifying Entity-Level Controls to Mitigate Risks
• Broad Definition for Types of Controls
• Essential Components of Effective Internal Control System: COSO Model
• Criteria for Unsatisfactory Rating for Control Components
• Methods to Generate List of Controls
• Insights on Flowcharting for Understanding Cycles and Controls

Fraud:

• Definition and Characteristics of Fraud
• Internal Auditor’s Role in a Fraud Case

• The Training lectures.
• The Group discussions.
• The Training Workshops.