Auditing Skills: Internal Audit: Fundamentals - Part 2

Course Overview

In the post-Enron world, increased attention has been focused on corporate governance. Internal audit has a key role to play in the 21 st century compliance agenda, in particular by providing independent assurance on systems of governance and internal controls to the board of directors.

This course provides internal auditors with an essential overview of the key issues surrounding governance, the control environment and business ethics. It includes a focus session on the role of internal audit in preventing and detecting fraud.

Audience

Internal auditors, and others who need to understand the internal audit roles.

Course Outline

GOVERNANCE OVERVIEW

• What is corporate governance?
• Impact of high profile scandals and the lessons to be learned
• Development of governance models -the UK approach (The Combined Code) and the US approach (Sarbanes-Oxley Act 2002) compared and contrasted
• The role of internal audit in 21 st century governance structures
• Benefits to business of improved governance

THE INTERNAL CONTROLS FRAMEWORK

• 'Professional scepticism' -its importance to internal audit effectiveness
• The concept of the control environment
• Introduction to internal control models - COSO, COCO, others
• Turnbull and UK best practice
• Who is responsible for internal controls?
• Control evaluation, testing and reporting methodologies

THE FRAUD AUDIT

• Fraud definitions, types and scale
• Responsibilities -what the standards say
• Fraud prevention programme
• How internal audit can increase fraud deterrence
• Modern techniques for fraud detection

CULTURE AND BUSINESS ETHICS

• What do we mean by business ethics?
• How to understand and assess corporate culture
• Key management tools - ethics statements, codes of conduct and policies
• Translating values into behaviour -how internal audit can help
• The importance of business reputation

Auditing Skills: Internal Audit: Fundamentals - Part 2 / CM025421