Tools and Techniques for Modern Internal Auditors Course

To become a successful auditor, a strong base of knowledge and an understanding of basic auditing skills are essential. With this program, auditors, as well as non-auditors with internal control responsibilities, can learn the ins and outs of an audit from beginning to the end.

Classroom demonstrations, exercises, group discussion, and lectures, will enrich attendee’s knowledge and will properly prepare them to conduct a successful audit. A basic understanding of the roles of risks and internal controls in auditing will also be stressed, along with interpersonal and team-building skills.

Learning Objectives

At the end of this course, you will be able to:

• Perform internal audit tasks and carry out value-added audit engagements
• Engage in a risk-based audit approach, from planning through process documentation to testing, analysis, and reporting
• Demonstrate the application of Professional Practices Framework
• Show the concepts and terms that are central to internal auditing.
• View your own organization from an internal auditing perspective.
• Communicate and sell internal auditing results

Lesson 1 Introduction to Internal Auditing

Lesson 1 begins with the definition of audit and proceeds to discuss internal control and management. Other topics outlined for treatment are as follows:

• Definition of audit
• Internal control and management
• Audit universe
• Methodology
• Risk based assurance plans
• Building the audit team
• Audit report (style, structure, information, clarity, language)
• Cover page:
• Table of contents:
• Executive summary:
• Background of Module and Audit:
• Methodology:
• Purpose and Scope of the Audit:
• Limitation:
• Summary of audit observations
• Details of audit observations
• Condition:
• Cause:
• Impact:
• Risk:
• Recommendations:
• Conclusion:
• How to audit top management processes
• Planning stage

Lesson 2

This session deals with major events of the recent past and regulatory requirements especially with Sarbanes Oxley Act, section 404. It goes on to treat fraud and fraud risks. Other topics treated in this section are:

• Reporting to th e audit committee/audit management
• Internal Control and Definition of Internal Control
• The Control Environment – A Review
• Management:
• Board of Directors
• Auditors
• What is Sarbanes-Oxley?
• Who is subject to the Sarbanes-Oxley Act?
• What is required for Sarbanes-Oxley Section 404?
  • When is compliance required?
  • What are the key steps we should take to prepare for Section 404? 
  • We're a mid-size company with limited resources. Can we use our external auditor to help us prepare for 404?
  • Is there a "rule of thumb" as to when the company should begin the process?
  • How much time should I budget for internal hours?
  • How much money should I budget for the 404 prep work and audit work for our company?
  • Are there other costs as well?
  • These new requirements and costs are imposing. Are there any options?
• Risk assessment and fraud
• What is Fraud?
• Identifying, measuring and managing risks
• The Questionnaire
• Ten Antifraud Suggestions
• Creating Positive Environment
• Hiring and Promoting Appropriate Employees
• Nothing Compares with Training
• Fair and Balanced Discipline
• Identifying and Measuring Fraud Risks
• Implementing and Monitoring Internal Controls
• Independent Audit Committee
• Internal Auditors
• Independent External Auditors
• Certified Fraud Examiners /Certified Forensic Accountants
• Fraud Investigation/Financial Integrity Unit (Forensic Accounting Unit)
• Case Management and Technology Tools
• The auditing standards boards and internal control

Lesson 3

This section treats controls, segregation, documentation, information and communication, SEC and a bit of corporate governance. The rest of the topics are:

• Control activities – a review
• Personnel
• Authorization Procedures
• Segregation of Duties
• Physical Restrictions
• Documentation and Record Retention
• Information and communication – a review
• Information
• Communication
• Monitoring – a review
• Monitoring i
• Extracts from the SEC code of corporate governance
• Internal Audit and Internal Controls
• Effective systems and controls
• Effective communication with the internal auditors
• Audit Committee Reports