Internal Control and Skills of Auditing

Learning Objectives

• Document and Evaluate Internal Control Systems.
• Audit Evidence and Audit Sampling.
• Define internal auditing and internal control.
• Identify “high-risk” processes—and build control systems that mitigate the risk.
• Develop control-based internal auditing recommendations that effectively help management meet tactical and strategic objectives.
• Focus on the Investment in Internal Audit.

Objective

By the end of this program, participants will be able to:

• Document and Evaluate Internal Control Systems.
• Audit Evidence and Audit Sampling.
• Define internal auditing and internal control.
• Identify “high-risk” processes—and build control systems that mitigate the risk.
• Develop control-based internal auditing recommendations that effectively help management meet tactical and strategic objectives.
• Focus on the Investment in Internal Audit.

Course Outline

Internal Auditing

• Define Internal Auditing.
• Identify the Components of an Effective Internal Audit Function .
• Define Management Responsibilities of an Internal Audit Function.
• Discuss the Similarities and Differences Between Internal Auditing and External Auditing.
• Define the Various Types of Internal Audits.

The Road Map to Effective Internal Audits

• Discuss the Principles of Effective Audits.
• Define Alpha and Beta Audit Risk.
• Perform Compliance, Substantive, and Operational Tests.
• Calculate Audit Risk.
• Define the Relationship Between the Internal and Control Environment and Audit Testing.

Focusing the Investment in Internal Audit

• Relate the Concept of Internal Audit Strategies to the Audit Planning Process.
• Develop a Long-Term Audit Plan for the Internal Audit Department Using Internal Control-Based Risk Assessment.
• Design the Audit Plan and Prepare an Audit Planning Memorandum for an Individual Internal Audit Project Assignment.

Documenting and Evaluating Internal Control Systems

• Understand the Work Process.
• Document the Work Process.
• Develop Process Flow Diagrams and Process Maps.
• Complete the Audit Internal Controls Documentation Matrix.
• Finalize the Audit Objectives.

Audit Evidence and Audit Sampling

• Discuss the Basic Concepts of Audit Evidence and Their Impact on the Development of Audit Work papers.
• Document Analytical Reviews.
• Test and Gather Audit Evidence.
• Complete and Document Compliance and Substantive Tests.
• Select the Appropriate Testing Method.
• Discuss Statistical Sampling Techniques.
• Determine the Objectives of the Sampling Plan.
• Develop the Sampling Plan.
• Apply Attribute Sampling Techniques.
• Extrapolate the Sample Results.
• Ensure That Audit Work papers Support Audit Conclusions and Recommendations.

Planning and Conducting Successful Audit Interviews

• Plan Interviews.
• Discuss a Framework for Planning, Conducting and Evaluating the Results of Interviews.
• Manage Conflict with Management.
• Listen Effectively.
• Talk effectively in a Non-Threatening Environment.
• Understand the Nature of Confidentiality of Information.