Skills of Auditing and Internal Control

Day 1: Introduction to Internal Auditing and the Audit Function

• Define internal auditing and its role within organizational governance
• Identify the components of a practical internal audit function
• Define management responsibilities associated with internal audit functions
• Discuss the similarities and differences between internal auditing and external auditing
• Define the various types of internal audits
• Understand the road map to effective internal audits
• Discuss the principles of effective audits

Day 2: Audit Planning and Risk Assessment

• Define and calculate audit risk, including alpha and beta audit risk
• Perform compliance, substantive, and operational tests
• Understand the relationship between the internal control environment and audit testing
• Relate the concept of internal audit strategies to the audit planning process
• Develop a long-term audit plan for the internal audit department using internal control-based risk assessments
• Design the audit plan and prepare an audit planning memorandum for an individual internal audit project

Day 3: Documenting and Evaluating Internal Control Systems

• Understand and document work processes effectively
• Develop process flow diagrams and process maps to represent work processes
• Complete the audit internal controls documentation matrix
• Finalize the audit objectives and document accordingly
• Learn the role of internal control systems in the audit process

Day 4: Audit Evidence, Sampling, and Testing

• Discuss the basic concepts of audit evidence and its impact on audit work papers
• Document analytical reviews and gather audit evidence
• Complete and document compliance and substantive tests during audits
• Select the appropriate testing method based on audit needs
• Discuss and apply statistical sampling techniques
• Determine the objectives of the sampling plan and develop it
• Apply attribute sampling techniques and extrapolate sample results
• Ensure that audit work papers support audit conclusions and recommendations

Day 5: Conducting Successful Audit Interviews and Managing Confidentiality

• Plan and prepare for successful audit interviews
• Understand the framework for planning, conducting, and evaluating audit interviews
• Manage conflict with management during audit interviews
• Develop practical listening skills for interviews
• Learn how to communicate effectively in a non-threatening environment
• Understand the importance of confidentiality during the auditing process