The Developing Internal Auditor

Day 1: Challenges of the Internal Auditor role

The need for Internal Audit to add measurable value

• New IIA 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
• Internal audit’s should review post-mortem and ‘lessons learned’ analysis if a significant adverse event has occurred
• New IIA Audit Executive guidance
• Internal Audit needs to add measurable value
• The function needs to enhance organisational value by providing stakeholders with risk-based, objective and reliable assurance, advice and insight.
• New IIA paper on models of effective IA will be shared
• Key messages from the IIA Body of Knowledge survey
• ECIIA research paper – making the most of the IA function
• Gaining assurance regarding the quality of the function’s work.
• Exercise 1 – The new challenges facing IA

How can a better understanding of the role be gained?

• How can the profile be enhanced?
• What does management think of the IA service?
• Ways to promote your function better
• Communication strategies
• New IIA guidance ‘What every Director should know about IA’
• Opportunities for Internal audit
• Exercise 2 – Marketing the evolving IA role

The developing audit skill set

• Why auditors need leadership skills
• The need for the ability to influence experts
• The IIA competency framework
• Diplomacy
• Open -mindedness
• Persuasiveness
• Negotiation ability
• Self-motivation and self confidence
• Decision making ability
• Flexibility and ability to co-operate
• Effective Time management
• Flexibility and ability to co-operate
• Self- control
• Practicality
• Results focus
• Investigative skills
• Building trust
• New IIA paper on influencing skills will be shared
• Exercise 3 - Performing a self-analysis

The different requirements and challenges facing IA

• Sector challenges
• The need to adapt quickly to new regulatory requirements
• Ensuring governance risk is recognised
• Smarter use of technology
• The move to continuous auditing
• Making IA a more strategic partner
• Thinking and acting more creatively

Initial Planning

• The importance of planning
• Stages in planning
• Constraints to effective planning
• 20 questions to aid planning
• Preparing for an audit engagement
• The need to engage audit customers
• Exercise 4 - Planning an audit assignment

The audit manual

• Outline of the key elements
• Assignment planning
• The audit file
• Working papers
• Personal learning planner
• Guest auditors
• Post audit questionnaire
• A 64 page manual will be provided to all delegates
• Exercise 5 - The audit manual

Day 2: Delivering an Audit Assignment

Organising the assignment

• The key issues in assignment planning
• Developing a planning memo for the assignment
• Determining an effective time budget
• Determining the business process using a model
• Determining sources of information
• Getting management input
• Deciding on the audit team
• Allocating the roles
• Getting the most out of the team
• Determining the potential difficulties
• Process analysis
• Preventative, detective, directive and corrective controls
• Strategies for improving time management
• Exercise 6 – How to complete more audits on time

Teamwork

• Determining sources of information
• Getting management input
• Deciding on the audit team
• Allocating the roles
• Team work and the challenges faced
• How to hold an effective team meeting to plan the assignment
• Getting the most out of the team
• Exercise 7 – Teamwork

Audit programmes

• Developing effective audit programmes
  • What makes a good programme?
  • Mistakes to avoid
  • The dangers of re-inventing the wheel
  • Assigning tasks
  • Staffing factors
  • The need for regular updates for standard programmes
• Example audit programmes will be shared
• Exercise 8 – Preparing an audit programme

Fieldwork techniques

• Types of fieldwork
• Compliance
• Transaction testing
• Analytical review
• Statistical sampling
• Process reviews
• Flowcharting
• Questionnaires
• Workshops
  • How to decide what techniques to use
• How to determine the depth of testing required
• New IIA advice on audit sampling
• Audit testing
• Working papers
• Exercise 9 – The challenges of audit testing

Use of Computer assisted audit techniques

• The benefits of ACL and IDEA
• CAAT’s and data mining
• Opportunities
• Types of test ideal for CAAT’s applications
• Cash monitoring
• Stock control
• Payroll
• Revenue
• Cost comparisons
• External comparisons (with external databases)
• Branch or business comparison
• Worked examples of the use of CAAT’s will be provided
• Advice from ISACA will be shared
• Exercise 10 – Use of CAAT’s – group exercise using audits chosen by the delegates

Consultancy and investigations

• Consultancy assignments
  • The difference in approach
  • How to document these assignments
  • Audit by workshop
  • Facilitation –do’s and don’ts
• Investigations – the differences between standard audits
• Which investigations should you accept?
• The investigation process
• Records required