Internal Audit

Course Title: Internal Audit Excellence: Principles, Practices, and Value Creation

Target Audience:

• Internal Auditors (New and Experienced)

• Compliance Officers

• Risk Managers

• Finance Professionals

• Operational Managers

• Anyone involved in governance or oversight functions

Overall Course Objectives:

• Understand the core principles of internal auditing.

• Develop skills in planning, executing, and reporting on internal audits.

• Learn to identify and assess risks.

• Improve communication and collaboration skills.

• Understand best practices and relevant standards (e.g., ISO 19011, IIA Standards, NABH 5th edition )

• Enhance value creation through effective internal auditing.

Course Duration: (Suggest 3-5 Days, could be adapted based on depth)

Course Outline:

Module 1: Foundations of Internal Auditing

• Introduction to Internal Auditing

  • Definition, purpose, and scope of internal auditing.

  • The role of internal auditing in governance, risk management, and control.

  • The value proposition of internal auditing.

• Internal Audit vs. External Audit

  • Key Differences

  • Responsibilities

• History and Evolution of Internal Auditing

  • Significant milestones and changes in the profession.

• The Internal Audit Function (IAF)

  • Structure, reporting lines, and responsibilities.

  • The internal audit charter.

  • Relationship with the audit committee and management.

• Internal Audit Standards and Ethics

  • Overview of the Institute of Internal Auditors (IIA) Standards.

  • Key principles of ethics for internal auditors (integrity, objectivity, confidentiality, competency).

  • Case studies on ethical dilemmas.

Module 2: The Internal Audit Process: Planning

• Risk Assessment & Audit Universe

  • Understanding risk management frameworks (COSO, ISO 31000).

  • Identifying and assessing risks relevant to the organization (strategic, operational, compliance, financial, technological).

  • Developing an audit universe based on risk assessment.

• Developing an Audit Plan

  • Prioritizing audits based on risk.

  • Considering resource constraints and audit coverage.

  • Documenting the audit plan.

• Defining Audit Objectives and Scope

  • Establishing clear objectives for each audit.

  • Determining the scope of the audit (activities, locations, time periods).

• Audit Program and Checklist Development

  • Designing audit programs to achieve audit objectives.

  • Creating checklists and audit procedures.

  • Sample checklists of key sectors. ( Hospitals as an example )

Module 3: The Internal Audit Process: Execution

• Gathering Audit Evidence

  • Techniques for gathering evidence (interviews, observations, document review, data analysis, testing).

  • Evaluating the reliability and sufficiency of evidence.

  • Using technology in data gathering and analysis.

• Working Papers

  • Purpose and structure of working papers.

  • Documentation standards and best practices.

• Conducting Interviews

  • Preparing for and conducting effective interviews.

  • Questioning techniques and active listening skills.

• Documentation Review

  • Identifying and reviewing relevant policies, procedures, and records.

  • Sample Auditing Formats, Documents, and Checklists as required.

• Observation and Testing

  • How to analyze findings during the Internal Audit process and come to conclusion.

Module 4: The Internal Audit Process: Reporting and Follow-Up

• Reporting Audit Results

  • Writing clear and concise audit reports.

  • Including findings, conclusions, and recommendations.

  • Tailoring reports to different audiences.

• Developing Recommendations

  • Formulating practical and value-added recommendations.

  • Considering the impact of recommendations on the organization.

• Communicating Audit Results

  • Presenting audit results to management and the audit committee.

  • Facilitating discussions and obtaining feedback.

• Follow-Up and Corrective Action

  • Monitoring the implementation of recommendations.

  • Verifying the effectiveness of corrective actions.

  • Closing out audit findings.

Module 5: Risk Management for Internal Auditors

• Advanced Risk Assessment Techniques

  • Scenario analysis, control self-assessment, and other advanced techniques.

• Auditing Risk Management Processes

  • Evaluating the effectiveness of risk management frameworks.

  • Assessing the maturity of risk management practices.

• Linking Audit Activities to Risk

  • Integrating risk information into audit planning and execution.

Module 6: Communication, Collaboration, and Stakeholder Management

• Effective Communication Skills

  • Writing, presenting, and interpersonal communication skills.

  • Tailoring communication to different stakeholders.

• Relationship Management

  • Building trust and credibility with management and the audit committee.

  • Managing expectations and resolving conflicts.

• Collaboration with Other Assurance Providers

  • Coordinating with external auditors, compliance functions, and other assurance providers.

Module 7: Continuous Improvement and Value Creation

• Quality Assurance and Improvement Program (QAIP)

  • Developing and implementing a QAIP for the internal audit function.

  • Conducting internal and external assessments.

• Benchmarking and Best Practices

  • Identifying and adopting best practices in internal auditing.

  • Staying current with industry trends and regulatory changes.

• Adding Value Through Internal Auditing

  • Providing insights and recommendations to improve organizational performance.

  • Becoming a trusted advisor to management.

Module 8: Industry-Specific Applications (Optional, Choose Based on Audience)

• Internal Auditing in Healthcare: NABH Accreditation

  • NABH 5th Edition Audit

  • Auditing for compliance with relevant healthcare regulations.

• Internal Auditing in Academic Institutions: KUHS QAS/NAAC Binary Accreditation

  • KUHS QAS Standards/ NAAC Binary Standards

  • Auditing for compliance with KUHS QAS/NAAC Binary regulations.

• Internal Auditing in Manufacturing:

  • Auditing production processes and supply chains.

  • Auditing for quality and safety.

• Internal Auditing in Financial Services:

  • Auditing for compliance with financial regulations.

  • Auditing risk management processes.

• Internal Auditing in the Public Sector:

  • Auditing for accountability and transparency.

  • Auditing for compliance with government regulations.

Assessment:

• Throughout the training

• Quizzes at the end of each Module

• Case Studies

• A Practical Assignment: participants develop an audit plan, execute a mini-audit, and write a report.

Materials:

• Comprehensive course manual (Hard copy and digital).

• Templates, checklists, and sample audit programs.

• Relevant standards and guidance documents.

• Case studies and exercises.

This outline provides a solid foundation for a comprehensive training course on internal auditing. Please let me know if you want any of these modules expanded, or have specific industry focuses you'd like integrated.