IAC Internal Audit and Controls

As a third line of defence the internal audit function has a fundamental role in overseeing the effective performance of the organization’s overall governance framework. The role of internal audit has been continuously evolving to becoming a strategic partner to the Board of Directors playing a key role in continuously improving the organizations internal control environment.
Today many internal audit functions are conducting internal audit reviews that a few years back where not to be found anywhere near the internal audit plan such as auditing culture, strategy, board performance, governance, conduct etc… and this is only further conformance as to what extent this function is maturing every year.
However, unfortunately, till today, the true role of the Internal Audit function is either not practiced correctly by internal audit practitioners or misunderstood by many of the stakeholders that have a direct relationship with the Internal Audit function. Therefore, this program aims to focus on the strategic value of the internal audit function to enable participant’s not only to obtain a deeper understanding of the nature of work relating to this function but also enabling them to better promote and communicate the value add this profession has to offer.
Below represents the outline for this module.
Internal Audit & Artificial Intelligence
Data analytics to add value
The evolving nature of the Internal Audit Profession

The program is designed to provide participants with in-depth knowledge as to the core principles of designing and implementing a Quality Assurance & Improvement Program (QAIP) within the bank’s internal audit activity. The program will first provide participants with a granular overview as to the International Professional Practices Framework (IPPF) with a specific focus on standard 1300 addressing the QAIP.

This module represents the first part of the internal audit methodology. At the end of this module, participants will be able to conduct an organizational wide macro-level risk assessment designed for internal audit planning purposes. This is a very strategic exercise in which participants will learn to use tools such as PESTEL & SWOT analysis to enable them to get a better understanding of key vulnerabilities that exist within their organizations and which represent a valuable source of input to the internal audit plan.

• 2000 – Managing the Internal Audit Activity
• 2010 – Planning
• 2020 – Communication and Approval
• 2030 – Resource Management
• 2040 – Policies and Procedures

• Key concepts and elements of internal audit.
• Macro Vs. Micro level risk assessment.
• High-level risk management concepts.
• Key objectives of internal control.
• Components of the COSO Framework.
• Role of Internal Audit in Corporate Governance.

• Objectives of the risk assessment process.
• Different types of risk assessment methodologies.
• The objective of internal audit planning.
• Resource allocation

This is why we believe that this is a critical program that every internal auditor needs to attend to ensure that not only they understand the importance of this essential step in the internal audit methodology but also to enable them with key tools that will significantly enhance their process understanding capabilities.
This program also addresses the final step of the internal audit methodology pertaining to communicating the internal audit results. This section of the training will enable participants to acquire the skills they require to start the long journey of continuously enhancing their communication and Internal Audit Writing skills. Below represents a detailed outline regarding the above. This program also includes a very interesting case study relating to understanding the procurement process.

• 1120 – Individual Objectivity
• 1200 – Proficiency & Due Professional Care
• 2200 – Engagement Planning
• 2201 – Planning Considerations
• 2210 – Engagement Objectives
• 2220 – Engagement Scope
• 2230 – Engagement Resource Allocation
• 2240 – Engagement Work Program
• 2300 – Performing the Engagement
• 2310 – Identifying Information
• Key challenges faced during the process understanding
• Key objectives behind the process understanding

• Obtaining Documentation & Information
• Analysing information
• Checking previous and other internal control reports
• Industry analysis and research
• Obtaining an understanding of the system functionality
• Understanding user profiles
• Obtaining process Key Performance Indicators

• Conducing the Business Understanding meeting
• Identifying control design deficiencies
• Understanding is not internal control testing
• Identifying process risks
• Identifying process controls
• Address audit issues during this exercise
• Conducing the Process Walkthrough
• Difference between the Understanding

• Identifying areas that can be subject to data analytics
• Identifying unsegregated duties
• Identifying automated controls
• Confirming your Understanding & Walkthrough
• Preparing the Risk & Control Matrix

• 2400 – Communicating Results
• 2410 – Criteria for Communicating
• 2420 – Quality of Communications
• 2421 – Errors and Omissions
• 2430 – Use of “Conducted in Conformance with the International Standards for the Professional Practice of Internal Auditing”
• 2431 – Engagement Disclosure of Nonconformance
• 2440 – Disseminating Results
• 2450 – Overall Opinions

• The Importance of the Internal Audit Report as the Departments Final Product
• Understanding your audience
• Report Content & Structure
• Effective internal audit execution resulting in high quality internal audit reports
• Internal Audit Report Content & Structure
• Report Issuance Standards
• Different Writing Styles
• The Executive Summary – A Key Dimension of Successful Writing
• Drafting a concise, clear and constructive internal audit observation.
• Drafting an actionable internal audit recommendation
• Using tables, graphs and charts as part of the internal audit report.
• An image can say 1000 words
• The tone of your Internal Audit Report
• The Organized thought-process