Course Information

Developing an audit work program can be a daunting process, especially when the specific audit area is unfamiliar or has not been audited previously. An effective audit program specifies who is responsible for the work, what is the purpose of the work, and how the work will be accomplished—all while allowing for flexibility. This course will provide participants with an approach that eliminates many of the assumptions, guesses, and pain points associated with audit planning. It will provide a foundation for developing audit programs and steps based on business objectives and the tools and techniques required to gather the evidence needed to achieve audit objectives while staying in scope. Less-experienced auditors will learn how to build the audit program, and experienced auditors will have an opportunity to refresh their skill set and master the Closing the Loop Framework as a tool for improving audit quality. Participants will have the opportunity to build components of an audit program during class exercises.

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

• Learning to develop a targeted and focused audit program that can be efficiently executed

• Understanding the importance of proper planning

• Learning tools and techniques for planning and executing an audit program

• Developing interviewing and communication skills

• Strengthening skills for developing audit steps and audit work programs

• Learning to use a Closing the Loop Process to ensure efficiency and targeted, focused audits

• Understanding the importance of proper scoping and learning scoping tools and methodologies

• Comparing, contrasting, and understanding various testing approaches and Methodologies

Course Outline

Setting the Stage: The Role of Audit

• Defining audit evidence

• Impact of audit evidence on audit risk

• Requirements from auditing standards

• Audit charter

• Compliance

• Audit work plan vs. audit checklist

Audit Development Cycle

• Closing the Loop Process

Planning—Understanding the Business

• Identifying and understanding business objectives

• Document review

• Understanding the business processes

• Documenting business processes

Planning—Scope

• SIPOC

• Defining scope—what’s in and what’s out

• Setting expectations with Management

• Scope statements

Interviews

• Information gathering and fact finding

• Establishing rapport

• Whom to interview

• Interviewing approaches and styles

• Questioning styles and approaches

• Conducting the interview

• Interviewing rules and best practices

• Communication barriers

Engagement Risk Assessments

• Understanding risk

• Types of risks—operational/financial/reputational/regulatory

• Identifying risk

• Evaluating risk

• Prioritizing risk

• Likelihood/significance/duration/velocity

Identification of Controls

• Types of controls

• Control objectives

• Entity-level controls

• Activity-level controls

• Evaluating controls: design vs. operating effectiveness

Documenting Processes and Controls

• Narratives

• Flowcharts and process flows

• Walkthroughs

Developing Audit Objectives and Refining Scope

• Importance of linking Audit Objectives to Operational and Control Objectives

• Developing steps that add value

• Linking to business objectives

• Business strategy and changes in business

• Proactive not reactive

• Adjusting scope

Developing Test Programs

• Formal test programs

• Test types and approaches

• Sampling methodologies—statistical/random/judgmental/data analytics

• Building audit steps based on business and audit objectives

• Incorporating appropriate audit techniques into audit work programs

• Understanding the importance of timing and sequencing audit steps

• Best practices for audit procedures

• Fraud considerations

• Avoiding the rabbit hole

• Using prior audit programs

• Leveraging technology

Audit Evidence

• Evidence requirements

• Evidence gathering methodologies

• Evidence types

• Reliability of evidence—strengths and weaknesses

Conducting the Audit

• Staying on time and on budget

• Avoiding scope creep

• Dealing with changes to the plan

• 5 Cs during field work

• Setting realistic expectations and meeting them

Communicating Audit Results and Reporting

• Transparency and communicating throughout audit

• Setting expectations for client updates

• Framing issues from a business perspective

• Leveraging the 5 Cs in reporting

• Using visualization in reporting

Auditing Standards

• IPPF standards

• ISACA standards

• GAGAS standards

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.