Course Information

In this two-day seminar, attendees will learn the concepts of traditional and operational auditing and gain proven tools and techniques for performing effective audits in the government environment. You will get a solid background in the basics of documenting and evaluating internal control/fieldwork techniques. Using specifically formulated case exercises, participants will examine the critical elements of internal auditing: assessing risk, flowcharting, designing flexibility into the audit program, performing the audit and applying audit results to solve business problems. You will focus on and put into practice the communications skills associated with internal auditing: conferencing with customers, writing audit findings and selling audit recommendations.

Upon completion of this course, participants will be able to:

-       Document and evaluate internal controls

-       Utilize proven tools and techniques for performing effective audits

-       Communicate effectively with audit customers

Course Outline

1.  Internal Audit Life Cycle and Key Concepts
• definition of internal audit
• fundamental questions of internal audit
• three lines of defense
• lifecycle/steps in the internal audit process
• identifying areas to be audited
• types of internal audits 
• internal control frameworks
• sample job description: role/level expectations

2. Risk Assessment Strategies  
• performance standards for 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
• examples of risks and risk assessment approaches

3. Audit Project Planning 
• performance standards on planning
• audit equals project
• planning risks, stages, strategies
• planning resources and key questions
• stakeholder awareness
• preliminary meetings
• early deliverables
• performance standard on governance

4. Documenting Internal Controls
• performance standards for documenting controls
• evaluating and documenting internal controls
• cost/benefit considerations
• types of controls
• the control environment
• other barriers/blocks to good control
• methods of documenting control
• group exercises

5. Audit Programs
• performance standards for audit programs
• audit program as guide and fence
• audit program examples
• criteria for audit programs
• audit objective
• audit scope
• audit test steps
• sample audit program

6. Fieldwork Techniques
• performance standards for fieldwork
• definitions related to evidence
• nine fieldwork techniques
• reliability of audit evidence
• types of audit evidence
• handling sensitive evidence

7. Audit Interviews, Walkthroughs, Meetings
• communication overview
• active listening
• audit interviews and walkthroughs
• purpose, preparation and planning
• interview structure: five phases
• face-to-face meetings: five reasons
• question types
• probing skills and questions
• creating a work product from notes

8. Workpapers
• performance standards for recording information
• performance standards for engagement supervision
• purposes of audit workpapers
• workpapers should stand alone
• workpapers’ completeness and accuracy
• workpaper techniques/templates
• electronic workpapers
• tick marks
• sample workpaper
• quality assurance and improvement programs

9.  Audit Findings
• performance standards on evidence
• attributes of audit findings
• selling audit findings
• template for audit findings

10. Audit Reports and Written Communication
• why do auditors write reports?
• performance standards on communication
• report trends, contents, timeliness, persuasiveness
• who is/are your reader(s)?
• in writing, words are all
• overview of the writing process
• increase readability and logical flow, reduce wordiness
• editing yourself and others

11. Sampling and Data Analysis
• audit testing
• sampling terminology
• sampling methodologies
• sampling for sox compliance
• data analysis definition, impact, 
• a simple data analysis model
• challenges in implementing data analysis

12. Events Which Have Helped to Create Growth in Internal Audit
• Foreign Corrupt Practices Act
• COSO
• COSO Enterprise Risk Management
• federal sentencing guidelines
• fraudulent financial reporting
• blue ribbon panel
• Sarbanes-Oxley Act
• more recent regulatory matters

TAC Rule 523.142(g) requires the CPE Sponsor to monitor individual attendance and assign the correct number of CPE credits. Participants will be asked to document their time of arrival and departure in compliance with this Rule. Additionally, attendance will be monitored throughout the day and CPE certificates will reflect actual attendance of each participant.

If you are making travel plans to come to Austin, we recommend making "refundable" air and hotel reservations or waiting until 14 days before the class to actually book your reservations. Courses are occasionally canceled or rescheduled due to low enrollment. We determine whether a course has enough participants 16 days prior to the course date. If we cancel or reschedule, we will email the participant and his or her billing contact no later than 14 days before the original class date.

The course coordinator will contact you with parking information. Handicapped parking is free at the meters around the downtown area.

Vending machines with Coca-Cola products and various snack items are available. There is also a refrigerator and microwave in our coffee bar area. Feel free to bring in your own drinks and food if you prefer.

You might want to bring a light sweater or jacket, as room temperatures vary.

To see answers to our Frequently Asked Questions, visit http://www.sao.texas.gov/training/faq.html.