Auditing

Thematic units:

1. Introduction to Internal Audit,

• Internal audit – definition
• The necessity of internal audit
• Internal audit as a culture
• Internal audit and value creation
• Independence and objectivity of Internal Audit
• Autonomy of Internal Auditors
• Jurisdiction of the internal audit
• Purpose of Internal Audit
• The position of the Internal Audit dpt in the organizational chart

 

2. Standards of Professional Practice of Internal Audit,

• Introduction to the Standards for the Professional Practice of Internal Auditing
• Purpose of the Standards
• Separation of Standards
• Feature standards
• Conduct standards

 

3. System of Internal Control,

 

• The profile of the Internal Auditor
• Duties and responsibilities of an Internal Auditor
• Relationship between Internal and External Auditors
• Success factors of the Internal Audit Department
• Internal Control System
• Internal Control system design
• Content of the Internal Control system
• Purpose of the Internal Control system
• Effectiveness of the Internal Control system
• Internal Control and risk
• Understanding of the Internal Control system of the financial unit
• Corporate culture in matters of Internal Controls
• Process that the financial unit has established for the assessment of risk
• Information system
• Control procedures that the financial unit has established
• Monitoring of the organizational effectiveness
• Measuring risk – effectiveness of controls
• Benefits from the evaluation of the Internal Control system
• Auditing controls

 

4. Internal Audit Methodology,

• Types of audit
• Internal Audit Methodology
• Preparation of the annual audit plan
• Frequency of audits
• Approval of the annual audit plan
• Carrying out the audit
• Audit design
• Carrying out the audit
• Audit methodology cycle
• Identification of risks
• Risk assessment and prioritization
• Design / implementation / improvement of controls
• Conclusions and report drafting
• Monitoring the process
• Internal audit tools
• Flow charts
• Operating manuals
• Questionnaires
• Internal Audit Programs
• Worksheets
• Interviews
• Audit files
• Audit report

 

5. Transaction cycle of purchases and accounts payable,

• Purchases and accounts payable Questionnaire
• Purchases and accounts payable audit program

 

6. Management of inventory transaction cycle,

• Inventory management questionnaire
• Inventory management audit program

 

7. Management of Cash and Banks transaction cycle,

• Cash and banks questionnaire
• Cash and banks audit program

 

8. Management of fixed assets transaction cycle,

• Management of fixed assets questionnaire
• Management of fixed assets audit program

 

9. Sales and accounts receivable transaction cycle,

• Sales and accounts receivable questionnaire
• Sales and accounts receivable audit program

 

10. Audit of IT systems,

• Questionnaire on IT systems
• Audit program on IT systems

 

11. Human Resources Management transaction cycle,

• Human Resources Management questionnaire
• Human Resources Management audit program

 

12. Corporate governance

• Introduction to Corporate Governance
• The importance of Corporate Governance
• The Role of Shareholders
• The Role of Boards of Directors
• The Role of the Executive members of the Board of Directors
• The Role of the non-Executive Members of the Board of Directors
• Voluntary application of rules
• Cadbury Code (Committee report 1992)
• Greenbury Code
• Combined Code (2000)
• Turnbull Code (Financial Reporting Council 2005)
• FRC Guidance for boards and board committees
• Advantages and disadvantages of voluntary compliance with Corporate Governance rules
• Principles, recommendations
• Non-executive members of the Management
• Audit Committee
• The Role of Internal Audit
• Responsibilities of external auditors
• Corporate Governance audit program

13. Specialized questionnaires and audit programs.

• Questionnaires on promotional and advertising expenses, company vehicles, insurance coverage, parent company relations, new product development, research and development, labor relations, compliance with legislation
• Promotion and advertising expense control programs, company vehicles, insurance coverage, parent company relations, new product development, research and development, labor relations, compliance with legislation

 

14. Audit reports

• Content of the report
• Characteristics of the report
• Categories of the Audit Report
• Communication about the Internal Control environment
• Communication with those in charge of Corporate Governance
• Audit Sheets
• Purpose of the Worksheets
• Good practices for writing and using Worksheets
• Audit file

 

A combination of teaching and learning methods will be used, aiming at the active participation of the students and the practical application of the thematic units under examination; there will also be lectures using audiovisual media, discussions, and analyses of case studies on real business issues, experiential (group) activities, as well as projections of relevant videos. The students will also potentially undertake an individual or group project. Furthermore, articles, web links/addresses, useful information, case studies and exercises for further practice are posted in digital form on the Open e-Class platform.