Course Information
Advanced Auditing Methods and Techniques for 2020
Parking for SAO, Professional Development courses is in Garage B (1511 San Jacinto Blvd.). The Garage signage may read 1511 San Jacinto or Garage B. The elevator in Garage B is not reliable. If you are unable to walk the stairs, please contact the professionaldevelopment@sao.texas.gov for alternate parking arrangements. Handicapped parking is free at the meters around the downtown area.
A course coordinator will Email you a parking permit prior to the course start date. A permit must be displayed or you will be ticketed.
Course Description
As responsibilities and expectations for today’s auditor increase and budgets and resources continually shrink, understanding the latest methodologies, tools, and techniques being used in the audit industry can be critical to the success of an audit team. This course will introduce, review, and evaluate the leading best practices being utilized to help auditors become highly effective and efficient. Each area of the
audit process—risk assessment, planning, interviewing, process documenting, sampling and testing, and reporting—will be examined. We will also cover marketing and selling the audit function capabilities to the business and best practices for audit teamwork.
This interactive course incorporates practice exercises, case studies, and demonstrations to ensure concepts are thoroughly understood and can be immediately applied in the workplace.
Course Objectives
Upon completion of this course, participants will be able to:
• Understanding today’s most relevant audit skills, techniques and methodologies
• Understanding the continually evolving expectations of the BOD and executives
• Identifying which techniques to use and when to use them
• Knowing when to use standard programs versus ad hoc
• Understanding the tools and technology available for use in today’s audit world
• Getting your audit reports read
• Learning how to sell internal audit’s capabilities and results
• Enhancing teamwork and the team environment
Course Outline
Internal Audit Today
• Best practices for auditing today
Updated May 2018
• Common opportunities for improvement and growth for audit
• BOD and Executive expectations of today’s auditor
• IIA CBOK Study: Core Competencies for Today’s Internal Auditor
• Identifying where value-added opportunities exist in your organization
• Identifying stakeholders and understanding their needs
• Today’s audit model
• Types of audit engagements
Risky Business: Risk Assessments and Risk Management
• Identifying and understanding business objectives
• Risk management concepts and terms
• Identifying potential risks to the business objectives
• Process Risks, Fraud Risks, Internal vs. External, Technology, Audit Risk
• Heat Maps, Value Maps, Risk Ranking, Impact and Likelihood
• Identifying and evaluating existing controls for known risks
• COSO Framework for controls and control issues
• Evaluating and addressing residual risk
Planning the Audit: Plan the Work, Work the Plan!
• Aligning audit objectives with business objectives while addressing risk
• Determining the risk-based audit plan annually
• Monitoring and updating the audit plan
• Planning individual audits
• Creating the audit plan—scope and objectives
• Staffing needs and roles and responsibilities
• Audit approach and process
• Time and budget
• Utilizing IPPF guidance for audit planning
• Leveraging formal Project Management methodologies for audits
• Involving the business in the initial planning
• Kicking off the audit—planning memos, audit announcement, opening conferences
• Audit planning best practices from leading audit functions Interviewing Tips, Techniques, and Styles
• Understanding how interviewing is used for an audit
• When to use an interview rather than other audit methods
• Avoiding pitfalls during follow-up interviews
• Best practices for planning and conducting interviews
• Interviewing practice exercises
Process Documentation Options and Methods
• When to formally document a process
• The Pros and Cons of using:
o Flowcharts
o Narratives
o Questionnaires
• Using walkthroughs and other walkthrough methods
Audit Programs Methods and Models
• Why an audit program?
• Developing the audit program
• Pros and Cons of standard audit programs versus ad hoc audit programs
• Classifying inherent impacts and likelihoods for various types of risks
• Understanding types of controls—preventive vs. detective and automated vs. manual
• Using narratives, flowcharts, and walkthroughs to identify gaps and potential risks
• Using risk matrices
• Determining what to test—key controls, high-risk processes
• Determining the testing objectives—aligning with business objectives
• Changes in scope, scope limitations, and running out of time
• Review and evaluation of the programs during execution
• Stop-and-go auditing
Automated Tools: Auditing at the Speed of Light!
• Tools for automating the audit process
• Understanding the potential for automation, data analytics, and audit software
• Interpreting data and using it in the audit process
• Making the jump to automation
• Continuous Auditing and Monitoring
Plans, Methods, and Approaches for Testing, Sampling, and Evidence Gathering
• Testing methodologies—manual, automated, and others
• Gathering audit evidence to support objectives
• Comparison between various sampling and testing approaches
• Determining the appropriate sampling and testing approach to use for each audit
objective
• Workpapers and why we need them
• Necessary components of workpapers
• Cross-functional uses of workpapers
• Exercises for planning and testing approaches
• IIA/GASB/ISACA Standards for evidence
Bringing It All Together: Reporting
• The 5 Cs of Audit Reporting
• Identifying what makes a report good versus a bad one and what keeps reports
from getting read
• Determining the readers of audit reports
• Executive Summaries
• Report organization and layout and why it matters
• Using Appendices—why, when, how, and what
• The two-page audit report—your readers will thank you
• Tying evidence to audit objectives to business objectives
• Getting the report out the door quickly
Selling the Results: If You Don’t Do This, the Rest Doesn’t Matter!
• Marketing audit and audit reports and findings to the business
• Methodologies for “selling” audit findings to stakeholders
• Factors that help or hinder selling audit findings and recommendations
• Why timing is crucial
• Establishing relationships and becoming a business partner
• How to sell an audit finding
• Exit conferences and why successful ones are critical to your success
• Follow-up, Monitoring, and Action Plans
• Post-Audit surveys and questionnaires
• Getting the business to ask for audits!
The Audit Team—Yes, You
• Why working as a cohesive team is critical
• How teamwork increases your perceived value as an audit group
• Suggestions for creating a team environment and improving teamwork
• Performance metrics and when to use them
• Staying within budget and on time: How to make it happen
Instructors
Carolyn is a risk management, auditing, and accounting consultant, as well as a
regular speaker for Empower Audit. Previously, Ms. Ferguson was Vice-President, Internal Audit, Temple-Inland where her role included supervising the internal audit group and assisting with the company’s enterprise risk management activities. Prior to joining Temple-Inland in 2001, she served in various auditing and accounting positions with several nationally recognized organizations including PepsiCo, American Airlines and Ernst & Young.
Ms. Ferguson is a Certified Public Accountant and received her Bachelor of Business Administration in Accounting, summa cum laude, from Texas A&M University. She served on a board committee of the Institute of Internal Auditors and is an active speaker on audit and process management and control topics for several Internal Audit associations and for The University of Texas. She is a supporter of the Austin Museum of Art, St. Judes Children’s Research Hospital, Texas State Troopers Association, American Cancer Society, American Heart Association, the ASPCA and Cocker Spaniel Rescue.
Additional Information
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.