Fundamentals of Internal Auditing

In this instructor-led course, participants will learn traditional and operational auditing concepts, gaining proven tools and techniques for performing effective audits. This course provides insights for conducting internal audits effectively from the initial risk assessment through planning, fieldwork, and reporting. It covers key techniques like flowcharting, preparing risk-control matrices, documenting issues, and writing narratives.

Why you should take this course

For users who are new to internal auditing, or would like to learn more about it.

Here are the topics we'll cover.

1. Key Concepts of Internal Auditing

   • Definition of Internal Audit
   • Fundamental Questions of Internal Audit
   • Three Lines Model
   • Lifecycle/Steps in the Internal Audit Process
   • Identifying Areas to be Audited
   • Types of Internal Audits
   • Internal Control Frameworks

2. Risk Assessment

   • What is Risk Anyway?
   • Effects of Risk
   • What is Risk Assessment?
   • Different Levels of Risk Assessment
   • Key Questions in Risk Assessment
   • Balance Between Risk and Control
   • Types of Risks
   • Risk Factors
   • Risk Assessment Approaches

3. Audit Project Planning

   • Audit as a Project
   • Planning Risks, Stages, Strategies
   • Planning Resources and Key Questions
   • Stakeholder Awareness
   • Preliminary Meetings
   • Early Deliverables
   • Governance

4. Documenting Internal Controls

   • Evaluating and Documenting Internal Controls
   • Cost/Benefit Considerations
   • Types of Controls
   • The Control Environment
   • Barriers/Blocks to Effective Control
   • Methods of Documenting Controls

5. Audit Programs

   • Audit Programs as a Guide and Fence
   • Audit Program Examples
   • Criteria for Audit Programs
   • Audit Objectives
   • Audit Scope
   • Audit Test Steps

6. Fieldwork Techniques

   • Definitions Related to Evidence
   • Nine Fieldwork Techniques
   • Reliability of Audit Evidence
   • Types of Audit Evidence
   • Handling Sensitive Evidence

7. Verbal Communications

   • Communication Overview
   • Active Listening
   • Audit Interviews and Walkthroughs
   • Purpose, Preparation, and Planning
   • Interview Structure: Five Phases
   • Phrasing Questions: Five Factors
   • Question Types
   • Probing Skills and Questions
   • Creating a Work Product From Notes

8. Workpapers

   • Purpose of Workpapers
   • Workpapers’ Completeness and Accuracy
   • Workpapers Should Stand Alone
   • Electronic Workpapers
   • Tickmarks
   • Quality Assurance and Improvement Program

9. Audit Findings

   • Attributes of Audit Findings
   • Selling Audit Findings
   • Communicating Findings

10. Written Communications

    • Quality of Communications
    • Why do Auditors Write Reports?
    • Typical Audit Report Contents
    • Issuing Timely Reports
    • Issuing Persuasive Reports
    • Audit Report Trends
    • Who are Your Readers?
    • Overview of the Writing Process
    • Readability
    • Editing

11. Audit Sampling

    • Sampling Terminology
    • Sampling Methodologies
    • Statistical vs. Non-Statistical Sampling
    • Data Analytics
    • Challenges Implementing Data Analytics

12. Reflecting on Internal Audit’s Past and Looking Forward

    • The Past
    • The Future