Course Description
Developing an audit work program can be a daunting process, especially when the audit area is one with which the auditor is unfamiliar, and/or has not been audited previously. This course will take the mystery and pain out of the process by introducing a methodology called “Closing the Loop Framework”. It provides a foundation for how to develop audit steps based on audit scope and the evidence required to achieve audit objectives. Less experienced auditors will learn how to build the audit program, and experienced auditors will have an opportunity to refresh their skill-set and consider the Closing the Loop Framework as a tool for improving audit quality. You will have the opportunity to build components of an audit program in a workshop.
In this seminar, we will discuss the critical issues to be considered:
- Fundamental requirements for audit work programs referencing audit standards and generally accepted practices
- Planning performance, financial, compliance and IT audits
- Using the Closing the Loop Framework to ensure completeness and quality of the planning and audit execution process
- How well-developed audit work programs support the management and quality assurance of audits
Learning Objectives
- Gain an understanding of the role of the Audit Work Program
- Become familiar with Standards-based Requirements for Audit Work Programs
- Strengthen one’s skills in developing audit steps and audit work programs
- Understanding how Checklists and Internal Control Questionnaires can be used
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
Additional Information
Who Should Attend
Internal and external auditors
Learning Level
Intermediate
Delivery
Group Live
Field
Auditing
Advanced Preparation
None
Recommended Prerequisites
At least 2 years’ general audit experience
Session Duration
On Site: 2 days
CPE Credits: 16