ACCG42005D
Internal Auditing & Controls
Sheridan
 
  I: Administrative Information   II: Course Details   III: Topical Outline(s)  Printable Version
 
Section I: Administrative Information
  Total hours: 42.0
Credit Value: 3.0
Credit Value Notes: N/A
Effective: Winter 2021
Prerequisites: ACCG32007D
Corequisites: N/A
Equivalents: N/A
Pre/Co/Equiv Notes: 75 credits including ACCG32007D

Program(s): Bach Bus Admin Market Manage, Bach Business Admin Accounting, Bach Business Admin Finance, Bach Human Resources, BachBus Admin Spply Chain Mgmt
Program Coordinator(s): Lorraine Alyea, Sathy Sritharakumar, Carol Bureau, Maryam Hafezi, Mark Weaver
Course Leader or Contact: N/A
Version: 20210118_00
Status: Approved (APPR)

Section I Notes: This course will be delivered in hybrid format.

 
 
Section II: Course Details

Detailed Description
Students examine the role, practice and value of internal auditing inthe for-profit and public sectors. Students investigate the importanceand benefits of the value-for-money audit and learn to identifycost-effective controls within the functional areas of a business.Topics covered include the role of the internal auditor; types ofaudits, enterprise risk management; planning the internal audit; theexamination phase of internal auditing; reporting audit observationsand monitoring; the impact of information technology on internalauditing; internal audit of purchasing, human resources management,marketing, and financial management; and internal auditing in thepublic sector and non-profit organizations. Through interactivelectures, class discussions, problem-solving activities, caseanalysis, practice-based projects and the use of computer software toillustrate concepts students gain relevant hands-on experience.

Program Context

 
Bach Bus Admin Market Manage Program Coordinator(s): Carol Bureau
Internal Auditing is an elective course in the Bachelor of Business Administration (BBA) Accounting program, as well as BBA Finance, BBA Human Resources, BBA Marketing and BBA Supply Chain Management. It is designed to contribute to the development of the students' ability to work as a contributing member of the audit team. This course is designed to meet the requirements for the professional accounting program of study.

Bach Business Admin Accounting Program Coordinator(s): Lorraine Alyea
Internal Auditing is an elective course in the Bachelor of Business Administration (BBA) Accounting program, as well as BBA Finance, BBA Human Resources, BBA Marketing and BBA Supply Chain Management. It is designed to contribute to the development of the students' ability to work as a contributing member of the audit team. This course is designed to meet the requirements for the professional accounting program of study.

Bach Business Admin Finance Program Coordinator(s): Mark Weaver
Internal Auditing is an elective course in the Bachelor of Business Administration (BBA) Accounting program, as well as BBA Finance, BBA Human Resources, BBA Marketing and BBA Supply Chain Management. It is designed to contribute to the development of the students' ability to work as a contributing member of the audit team. This course is designed to meet the requirements for the professional accounting program of study.

Bach Human Resources Program Coordinator(s): Sathy Sritharakumar
Internal Auditing is an elective course in the Bachelor of Business Administration (BBA) Accounting program, as well as BBA Finance, BBA Human Resources, BBA Marketing and BBA Supply Chain Management. It is designed to contribute to the development of the students' ability to work as a contributing member of the audit team. This course is designed to meet the requirements for the professional accounting program of study.

BachBus Admin Spply Chain Mgmt Program Coordinator(s): Maryam Hafezi
Internal Auditing is an elective course in the Bachelor of Business Administration (BBA) Accounting program, as well as BBA Finance, BBA Human Resources, BBA Marketing and BBA Supply Chain Management. It is designed to contribute to the development of the students' ability to work as a contributing member of the audit team. This course is designed to meet the requirements for the professional accounting program of study.


Course Critical Performance and Learning Outcomes

  Critical Performance:
Critical Performance By the end of this course, students will have demonstrated the ability to properly report the operational effectiveness and efficiency of an internal audit.
 
Learning Outcomes:

To achieve the critical performance, students will have demonstrated the ability to:

  1. Evaluate the importance of independence and objectivity of the internal auditor.
  2. Identify the role of the internal auditor and the audit committee.
  3. Determine the long-term and short-term planning requirements for internal audits.
  4. Develop an internal audit work plan to guide the audit process.
  5. Evaluate internal audit results to identify any control weaknesses.
  6. Assess the role of the internal audit function in establishing and maintaining enterprise risk management processes.
  7. Apply internal reporting standards as set by generally accepted auditing standards.
  8. Identify the impact of information technology on internal auditing.
  9. Create an audit program for the functional areas within a business.
  10. Assess internal auditing in the public and not-for-profit sectors.
  11. Demonstrate professional behaviour including: a. meet due dates b. produce professional quality assignments c. use reference materials responsibly

Evaluation Plan
Students demonstrate their learning in the following ways:

 Evaluation Plan: IN-CLASS & ONLINE INSTRUCTION
 Midterm test30.0%
 Comprehensive final exam40.0%
 Assignments and Reports (3 at 5%)15.0%
 Internal Audit Case Study15.0%
Total100.0%

Evaluation Notes and Academic Missed Work Procedure:
In addition to achieving a minimum 50% overall grade, a student must have a combined average of at least 50% on the non-group components of the evaluation plan in order to receive credit for this course.

Provincial Context
The course meets the following Ministry of Colleges and Universities requirements:


 

Prior Learning Assessment and Recognition
PLAR Contact (if course is PLAR-eligible) - Office of the Registrar

  • Not Eligible for PLAR

 
 
Section III: Topical Outline
Some details of this outline may change as a result of circumstances such as weather cancellations, College and student activities, and class timetabling.
Instruction Mode: In-class & Online Instruction
Professor: Multiple Professors
Resource(s):
 TypeDescription
OptionalOtherTextbook(s): Reding, K. R., Sobel, P. J., Anderson, U. L., Head, M. J., & Ramamoorti, S. (2013). Internal Auditing: Assurance & Advisory Services (3rd ed.). The IIA Research Foundation. Recommended Reading: International Standards for the Professional Practice of Internal Auditing (Standards) - The Institute of Internal Auditors (IIA); Code of Ethics - IIA Assigned readings from: Periodicals - The Institute of Internal Auditors (IIA); Other Audit cases as selected by instructor

Applicable student group(s): Bachelor of Business Administration
Course Details:

Module 1: Introduction to Internal Auditing
1.  Define internal auditing and evaluate the social and economic
    purpose (scope) of internal audit activity  
2.  Explain the various types of internal audit assignments
3.  Define risk and enterprise risk management (ERM) and the
    relationship to internal control
4.  Explain the role of management in the achievement of internal   
    controls
5.  Identify the role of the internal auditor and the audit committee
    in ensuring good governance and the compare it to the role of the
    external auditor
6.  Describe the role of the internal auditor in promoting an ethical
    culture and apply ethical judgment
Learning Outcome(s): 1, 2

Module 2: Internal Audit Standards
1.  Explain the International Professional Practices Framework (IPPF)
    and describe the three mandatory elements
    a. Explain the standard-setting process for the International
       Standards for the Professional Practice of Internal Auditing 
      (Standards) 
       i. Describe the Attribute and Performance standards of the
         Standards
    b. Describe the Code of Ethics
2.  Determine the purpose and content of an internal audit charter
3.  Explain the importance, requirements and impairment of  
    independence and objectivity
4.  Evaluate independence in internal audit (consulting) engagements
5.  Describe the main standards for proficiency and professional due
    care
6.  Describe the standards for managing the internal audit department
    and quality assurance
7.  Identify the requirements of using outsourced resources
8.  Other topics in internal audit standards
Learning Outcome(s): 1, 7

Module 3: Risk Management, Control, Frameworks, and Governance
1.  Identify different types of enterprise risk (strategic,
    operational, reporting, compliance)
2.  Explain the contribution of internal audit and the audit committee
    in the overall governance, risk management and control processes
    of an organization
3.  Explain the enterprise risk model (ERM) framework and its purpose
    in identifying risks 
4.  Assess the role of the internal audit function in ERM
5.  Explain the risk assessment process and the impact on audit   
    planning
6.  Evaluate the objectives of internal controls and the optimization
    of resources
    a. explain the nature, criteria and inherent limitations of
       various control frameworks (including (Committee of Sponsoring
       Organizations of the Treadway Commission (COSO), Criteria of
       Control Framework (CoCo))
7.  Describe the process of using a control framework to assess
    controls in an organization
8.  Explain the control self-assessment process, identify advantages
    and disadvantages, and describe how continuous monitoring can 
    improve the effectiveness of internal controls
9.  Describe the Performance Standards for governance for internal
    auditors and the audit committee
10. Other risk management, control and governance topics 

Learning Outcome(s): 2, 6


Module 4: Internal Audit Engagement Planning
1.  Describe the overall the internal audit process, identify the main
    phases and explain their purpose
2.  Determine the long-term (strategic) and short-term (annual)
    engagement planning requirements including:
    a. Explain how an audit universe is defined
    b. Identify factors that impact overall risk assessment
    c. Evaluate the risk assessment matrix (likelihood and impact)  
    d. Explain the following components of an engagement plan:
       i. Process objectives; adequate criteria to evaluate
          governance, risk management and controls; significant risks
          to process objectives; potential for errors and fraud;
          preliminary risk assessment; scope of the engagement; other
          engagement planning topics
3.  Apply the Performance Standards and create an internal audit
    engagement plan
Learning Outcome(s): 3, 4, 7
Assignment/Report (1) 5%

Module 5: Performing the Internal Audit Engagement
1.  Describe the main components of the examination phase
2.  Explain the purpose of and describe the steps of an internal audit
    work program
3.  Evaluate the sufficiency and appropriateness of audit evidence
4.  Develop audit criteria and prepare an audit work program using a
    risk-based approach  
5.  Evaluate audit results to identify control weaknesses and discuss
    the implication of any deficiencies
6.  Describe the use of computer-assisted audit techniques (CAATs) and
    distinguish between systems-oriented and data-oriented (CAATs) 
7.  Explain the purpose and benefits of using generalized audit   
    software
8.  Identify the components and the standards for preparing audit
    working paper files
9.  Identify potential fraud factors and differentiate between the
    responsibility of management and internal audit in preventing and
    detecting fraud
10. Describe the fraud investigation process, the contents of a fraud
    report and the role of internal audit  
11. Identify the impact of computer fraud and information technology
    on internal auditing
12. Other performance topics
Learning Outcome(s): 3, 4, 5, 6, 7, 8

Mid-Term Exam (Module 1 - 5) 30%

Module 6: Communicating Internal Audit Results and Monitoring Progress 
1.  Identify effective interview skills and describe the recommended
    approaches to conflict management
2.  Identify the objectives of internal audit reporting
3.  Describe the standards for internal audit reports
4.  Determine the information to be included in an internal audit
    report, evaluate the factors to consider when drafting
    recommendations, and explain the purpose of reviewing the report
    with management prior to release
5.  Draft an internal audit report
6.  Explain the importance of and determine the steps in monitoring
    internal audit recommendations
7.  Apply the performance standards to report on audit findings
Learning Outcome(s): 5, 7

Module 7: The Impact of Information Technology on Internal Auditing
1.  Explain how IT functions and controls affect the internal audit
    process
2.  Discuss the development and specialization of IT auditing
3.  Identify IT risks and their impact on an organization
4.  Evaluate various IT control frameworks (including ITGC, GTAG,
    COBIT)
5.  Identify the types of general computer controls and application
    controls in an IT environment and develop audit procedures to
    test for operating effectiveness
6.  Identify the types of controls used to manage risks in an IT
    communication and network environment and in an end-user computing
    environment
    a. Automated controls, manual controls,
    b. Data entry and access controls
    c. Processing controls
    d. End-user and business unit computing controls
    e. Specific controls
7.  Explain the implications of emerging technologies for internal
    audit
8.  Determine the impact of e-commerce for internal audit
9.  Other information technology topics
Learning Outcome(s): 8
Assignment/Report (2) 5%

Module 8: Operational Auditing: Marketing, Purchasing, and Production
1.  For the marketing, purchasing and production processes and/or
    functional areas:
    a. Explain the main activities and risks
    b. Create a basic audit program (including comprehensive audit
       techniques) using a risk-based approach
    c. Analyze data using generalized audit software
    d. Evaluate internal audit results to identify control weaknesses
Learning Outcome(s): 4, 5, 7, 8, 9

Module 9: Operational Auditing: Human Resources Management, Treasury,
Strategic Planning and Financial Reporting
1.  For the human resource management, treasury, and strategic
    planning processes and/or functional areas:
    a. Explain the main activities and risks
    b. Create a basic audit program (including comprehensive audit
       techniques) using a risk-based approach
    c. Analyze data using generalized audit software
    d. Evaluate internal audit results to identify control weaknesses
    e. Explain the role of the internal auditor in the financial  
       reporting process, the regulatory reporting requirements and
       the overall implications of regulatory reporting and assurance
    f. Explain the mechanisms for compliance including Sarbanes-Oxley
       Act (SOX) of 2002  
Learning Outcome(s): 4, 5, 7, 8, 9
Internal Audit Case Due 15%

Module 10: Internal Auditing in the Public and Not-For-Profit Sectors
1.  Identify the main activities and risks specific to the public
    sector
2.  Discuss governance in the public sector and explain how public
    sector auditors and audit committees contribute to governance
3.  Explain the role of the Auditor General and distinguish it from
    the role of the internal auditor in the public sector
4.  Explain the standards for internal auditing in the public sector
5.  Explain the components of comprehensive auditing in the public
    sector, including value for money auditing 
6.  Identify the main activities, risks and governance in the
    not-for-profit sector
7.  Determine the special internal audit considerations for
    not-for-profit companies
8.  Other public and not-for-profit sector topics
Learning Outcome(s): 10
Assignment/Report (3) 5%

Final Comprehensive Exam 40%



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