This course is designed for senior audit managers.
In any excellently managed business enterprise, the Board of Directors and Management look up increasingly to internal audit to help them better control the enterprise to keep the business on course towards achievement of the business objectives. The enterprise must always eliminate or, at least, minimize the risk of undesired events.
On their own part, the senior internal auditors must regularly guarantee the assurance that the internal controls are effective in achieving the business objectives for which the controls are installed. Sometimes, the dilemma for the Internal Auditors in performing this assurance function can be that of finding or designing a framework that provides an objective, evidence-based and systematic analysis from which effectiveness of internal control systems can be determined.
This training provides an integrated framework for assuring the effectiveness of internal control system for organizations by clearly outlining bases for expressing opinions on and assuring the effectiveness or otherwise of internal control system in the enterprise. The body of knowledge that this course takes them through imposes on each senior auditor a duty to address systemic root causes of internal control weakness wherever any is found. If well applied, the additional knowledge this training presents will get auditors to apply appropriate criteria in key phases of each audit (planning, field work, reporting) and provide a trail to support the conclusions reached.
At the end of the training, senior audit managers participating will be able to:
- Master or reinforce their understanding of strategic auditing and the main drivers of the business.
- Conduct specific categories of strategic auditing.
- Determine the dominant internal control objectives relevant to different business functions or processes to be audited and focus thereon for the purpose of giving audit assurance.
- Design, during the Audit Planning phase, appropriate tests and inquiries as basis for rating effectiveness of controls.
- Develop a control evaluation form showing ratings for each control component and an overall summary rating indicating whether there is a reasonable assurance that the chosen internal control objective is being achieved.
Module - Audit Risk Management
- Introduction - What Makes an Audit Professional
- Body of knowledge
Audit Risk Management - Planning
- Understand the business
- Audit procedure assurance
- Points of focus
Resources to implement the audit plan.
- Audit Risk Management - On-Site
- An outline of pervasive audit risk factors
- Risk assessment and rankings
- Sample size for audit testing.
Audit Risk Management - Audit Risk Model
- Risk that the financial statements are materially incorrect
- Detecting risk of misstatement
- Control risk - failure or total absence
- Information technology risks
- Application of Risk Model.
Audit Risk Management - After the Risk-Audit
- Conflicts of interest issues
- Legal liabilities of Audit Risk
- Enforcement, Reward and Sanctions.
Module - Auditing Strategy
- Auditing Strategy - The Memorandum
- Objectives and Scope
- Management responsibility.
Auditing Strategy - Audit Planning and Audit Strategy
- International standard on auditing
- How to improve audit efficiency
- Deploying correct audit strategy.
Module - Audit Structure
- Audit Structure - Business Factors
- Industry variations
- Company culture.
Audit Structure - Quality
- Auditor independence
- Auditor experience
- Auditor accountability
- Audit quality assurance.
Audit Structure - Compliance Requirements
Module - Fraud
- Fraud - Environment of the Business
- Dangers of fraud to a business organization
- Organization structure and job functions
- Fraud and errors
- The likelihood of fraud occurrence
- Critical items size and value
- Separation of duties
- Strength of controls.
Fraud - Different types
- Falsification of financial statement
- Inflation of sales levels
- Falsification of receivables
- Shifting expense periods
- Loss reserve fraud
- Shielding liabilities
- Fraud by and with outsiders.
Fraud - Investigation Procedures
- Interviewing techniques
- Document examination
- Strict control of information.
Fraud - Detection
- Fraud risk indicators
- Communicating a detection of fraud.
Module - Anti Money Laundering and Economic Crimes
- Anti-Money Laundering and Economic Crimes
- Understanding predicate offences
- The regulatory framework
- Legislative pronouncement (global and locally)
- File a suspicious activity report
- Conspiracy to violate money laundering laws
- Operate a robust AML compliance program
- Commitment to economic and transaction scrutiny ethics
- Changes in risk profiles
- Implement currency exchange controls
- Controls governing responses to regulatory inquiries and audits
- Compliance - Apply rules no matter the position
- Monitoring, reporting and continuing review of compliance
- How illegal money and assets are converted for legitimacy.
- Anti-Money Laundering and Economic Crimes - Sources
- Bribery and corruption
- Currency exchange fraud.
- Money Laundering Cycle
- Initiating crime
- Proceeds washed into legitimate commerce
- Proceeds moved to different accounts
- Proceeds revert legally to criminal perpetrator
- Purchases with proceeds.
Money Laundering Investigation Routes
- Loan back arrangements
- Bureau de Change and other FX changers
- Credit and debit cards
- Share and bond purchases
- Intermediaries - lawyers, accountants, private bankers
- Real estate
- Commodity trading
- Insurance policy.
Money Laundering Risks for the Enterprise
- Legal risk (litigation, fines, imprisonment)
- Reputational risk (adverse publicity, tainted image)
- Operational losses.
Measures Against Money Laundering
- Board oversight
- Policies and their application
- Internal Control effectiveness
- Audit trail watch
- Cash transactions watch
- How to make a report.
Module - Corporate Governance
- Corporate Governance - Scrutiny
- Corporate policy
- General ethical conducts
- Integrity in financial dealings
- Information dissemination.
Corporate Governance - Competency
- Best practice.
Corporate Governance - Crucial Duties
- Board's duties
- Risk management systems
- Shareholder value protection
- Conformity with the law.
Corporate Governance - Institute of Directors Codes
- Leadership and judgement
- Anti-competition matters
- Conflict of interests matters
- Professional reputation matters
- Board balance and Independence.
Module - Audit Reporting
- Audit Reporting
- Objective and background
- Known problems
- History of past issues
- Risk-assessment process
- Overall findings
- Composite ratings of internal control
- Maturity levels of internal controls
- Action plans
- Follow-up and tracking.