Course description
The Institute of Internal Auditors in a professional guidance statement stated the following:-‘Internal Audit are being asked to provide much greater assurance to Senior Management than ever before. The Institute believes that the only way to provide such objective assurance is by means of risk based auditing’.
Audit functions that are able to focus their efforts towards the significant risk in their organisations are able to concentrate their limited resources on the issues which drive business goals and aspirations. In consequence audit plans are directed at the issues, which really matter (which often are the operational risks).
This course covers the latest developments. The course features a case study on the step by step approach to a risk based operational audit.
Upcoming start dates
Outcome / Qualification etc.
- Audit managers and senior auditors
- Auditors responsible for developing or implementing a risk based approach
- Other assurance professionals such as those in Compliance and QA functions who are wanting to develop their Risk based approach
- Managers and Directors of business functions – to aid their knowledge of a risk based audit approach.
Training Course Content
Day 1: Embedding a risk based audit process
Embedding a risk based audit process
The principles of RBA
Worldwide trends
Trends (from GRC research and our Internal audit best practice database)
The need to focus more audit attention on the operational risks
The need to significantly refocus the Internal audit to meet the updated IIA standards :-
Internal audit credibility and value are enhanced when auditors offer new insights and consider future impact
A higher level of assurance (coordinated with the work of the other assurance providers) must be provided
Internal Audit needs to add measurable value to the business.
IA needs to be regarded as a strategic partner and advisor
The function needs to enhance organisational value by providing stakeholders with risk-based, objective and reliable assurance, advice and insight.
IA must ensure that appropriate risk responses are selected that align risks with the organisation’s risk appetite
How risk based audit has changed the face of auditing
New 2020 Code of Conduct
Helping the Board to protect the assets, reputation and sustainability of the organisation.
Internal audit should have the right to attend and observe all or part of executive committee meetings
Exercise 1 Challenges for Internal Audi
Enterprise risk management and the IA role
Explanation of ERM and why it is not fully understood
The current economic crisis and how ERM can help
The role and responsibilities of directors and senior management with respect to ERM
ERM roles and responsibilities
Categories of risk.
Selling the benefits to top management
Strategic Audit Planning
Strategic audit planning
How to decide which areas to audit and ensure more focus on operational risks
The audit universe – new IIA guidance
Determining the level of assurance
IIA guidance – Production of the audit plan
The RBA audit plan preparation
Risk Based Internal Audit Plan Example
A best practice audit risk planning model will be used (an electronic version will be provided to all delegates)
Exercise 3: Developing a strategic audit Plan using the model
Ensuring your role is fully coordinated with the other assurance providers
Ensuring your assurance providers roles e.g. Internal Audit,
Compliance, Risk Management, Insurance, Security are coordinated to avoid duplication of effort
Why you should incorporate internal audit agreed actions in your risk register
Ensure environmental risk is taken seriously (even if you are in a sector such as Financial Services
Ensure that your Business Continuity plan covers all eventualities and ensure it is fully tested
Identify new ways to benefit the least able section of the wider community you serve
New guidance on coordinating RM & assurance
Exercise 4 – Team exercise – the mystery
Day 2: Risk Based Auditing in Practice
Risk Based Auditing in Practice
Brainstorming the functional objectivesBuilding a picture of the risks
Consider threats and opportunities
Building the details of the controls
Planning the assignment
Determining the types of test and techniques to use
Determining the threats to success
Exercise 5. Audit topics will be chosen for the purpose by the delegates and the functional objectives and risks brainstormed in groups
The Risk Based audit step by step
A risk based programme case study will be walked through
Reviewing the business objectives
Are the objectives comprehensive and SMART?
Do the risks in the register relate properly to the objectives?
Are they specifically linked to the objectives and recorded?
Are the inherent risks correctly evaluated?
Are any key risks missing?
Are the causes of the event identified?
Have mitigating actions been recorded for each risk?
Is such mitigating detailed enough?
Are there any actions in progress to deal with risk?
Assess the status of such actions
Are there any management decisions pending?
Has a target risk been established?
Assess confidence level in the potential for such actions to
reduce the risk required
Is the target risk realistic?
Audit testing
Test each mitigating control by means of walk through tests
Extend testing as required to obtain sufficient evidence
Identifying over-managed risks
Opportunity Auditing
Developing the consultancy role
Course delivery details
The course will consist of three 1.5 hour sessions each day.
Delivery method – On-line-live (with exercises and case studies to provide practical application of the tools and techniques)
Expenses
Course fee: GBP 350 (US$ 500) which includes comprehensive course materials
Continuing Studies
- ENHANCE internal audit’s contribution to the business
- ENGAGE more positively with senior management
- DELIVER more focussed audit plans through developing the appreciation of operational risk
- PLAN assignments effectively to focus on opportunity as well as risk
- ASSIST management to simplify and streamline operational processes
- AUDIT business areas which may have not been previously covered
- PLAN risk based assignments efficiently and effectively
- MEASURE success more effectively
- APPLY a simple method to reduce unnecessary controls
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