Core Curriculum: Understanding Internal Auditing

This course introduces you to the elements of the International Professional Practices Framework (IPPF), which facilitates consistent development, interpretation, and application of concepts, methodologies, and techniques useful to the profession of internal auditing. The framework provides a structural blueprint of how a body of knowledge and guidance fits together and is intended to assist practitioners and stakeholders with their response to the expanding market for internal auditing.

This course highlights the IPPF’s authoritative mandatory guidance, including the Definition of Internal Auditing, the International Standards for the Professional Practice of Internal Auditing (Standards), the Core Principles for the Professional Practice of Internal Auditing, and the Code of Ethics. Conformance with the Standards is essential in meeting the responsibilities of internal auditors and the internal audit activity. The IPPF also highlights recommended guidance, including Practice Guides and Global Technology Audit Guides (GTAGs).

Maintaining independence and objectivity are important concepts to the professional practice of internal auditing. In fact, independence and objectivity is one of the three pillars of effective internal audit services. This course describes the importance of organizational independence, how to identify the elements that affect organizational independence, and how to recognize impairments to organizational independence. Additionally, this course helps learners understand the importance of individual objectivity and supports them in identifying factors that may impair — or appear to impair — individual objectivity, as well as how to detect and manage any real or perceived impairments. Finally, the course explains how to assess and maintain individual objectivity as an internal auditor, and how to analyze policies that promote objectivity.

Performing internal audit engagements with proficiency and due professional care is the responsibility of every internal auditor. It requires a great deal of skill to be a successful internal auditor, and knowledge alone is not enough to become proficient. Internal auditing is also learned by doing; in other words, on-the-job experience is crucial.

This course distinguishes between proficiency and due professional care and identifies the four major areas of competency defined within The IIA’s Global Internal Audit Competency Framework. In addition, it helps learners to recognize the knowledge, skills, and competencies required to fulfill the responsibilities of the internal audit activity. Finally, this course differentiates between technical skills and soft skills and explains how individual internal auditors can achieve competency through continuing professional development.

The internal auditor must understand the materiality of facts and their relevance with respect to the engagement objectives, while also considering his or her professional responsibilities and ethical obligations.

This course highlights the purpose of Domain II: Ethics and Professionalism of the IIA's Global Internal Audit Standards, its five principles, and the guidelines that aid internal auditors in translating these principles into practical applications. It also covers the applicability and enforcement of Domain II and evaluating ethics conformance.

Internal auditors are expected to behave ethically and in conformance with The IIA’s Global Internal Audit Standards. Domain II: Ethics and Professionalism includes two essential components. The principles — which internal auditors are expected to apply and uphold — are relevant to the profession and practice of internal auditing, and the standards that describe behavior expected of internal auditors. The Standards apply to both parties and entities that provide internal audit services, and its purpose is to promote an ethical culture in the global profession of internal auditing.

This course describes the importance of a code of ethics for internal auditors and identifies the principles of Domain II of the IIA’s Global Internal Audit Standards. Further, this course expresses how to demonstrate individual conformance.

The International Professional Practices Framework (IPPF) describes Governance as “the combination of processes and structures implemented by the board to inform, direct, manage, and monitor the activities of the organization toward the achievement of its objectives.” Governance sets the foundation for business protection and strategic performance, as well as the confidence of the markets, investors, regulators, and other key stakeholders. Effective corporate governance is necessary for achieving strategic objectives in dynamic environments while supporting a strong risk culture.

This course emphasizes the importance of governance in the International Standards for the Professional Practice of Internal Auditing and helps the learner to recognize and interpret the organization’s ethics- and compliance-related issues, alleged violations, and dispositions.

This course describes risk management in detail, discussing key risk management elements and principles, as well as the various roles and responsibilities. Other illustrations will be provided to depict, in greater detail, how one might envision the key elements of risk management. The course ends with discussions about how the internal audit function can play an integral role in risk management. The specific roles of the internal audit function are discussed, as is the impact risk management may have on the internal audit plan.

Essentially, there are few activities within an organization that are more important to its success than maintaining internal control. Internal auditing adds value to the organization, as it provides management with assurance that adequate controls are in place, that they are working as intended, and that any failures are investigated and remedied in a timely manner.

This course introduces learners to types of controls, and how to interpret internal control concepts and types of controls. It describes the impact of organizational culture on the overall control environment and identifies the impact of organizational culture on individual engagement risks and controls.

Fraud is a threat to all organizations. This course introduces learners to the various types of fraud, fraud risk, and the red flags of potential fraud. The course explains how to evaluate the potential for the occurrence of fraud and how an organization detects and manages fraud risks. In addition, this course will provide learners with an understanding of how to determine whether fraud risks require special consideration when conducting an audit engagement, how to evaluate the potential for fraud, and how to recommend controls to prevent and detect fraud. Finally, learners will discover how to educate an organization about fraud and improve its fraud awareness.

Engagement planning is critical to effective internal auditing. Experienced internal audit professionals agree that the occurrence of most major mishaps during an internal audit engagement can be traced back to poor planning.

This course conveys that it is imperative for internal auditors to consider how the internal audit activity can add value to the organization from the very beginning of the audit engagement planning process. Participants in this course will determine which factors should be considered while preparing to conduct an audit engagement, including setting the engagement scope, establishing the engagement objectives, and documenting the engagement work program. This course also discusses engagement resource allocation.

The International Standards for the Professional Practice of Internal Auditing are grouped together in three phases: engagement planning, engagement fieldwork, and engagement outcomes, which align with The IIA’s Competency Framework. This course focuses on engagement fieldwork. To conduct fieldwork, internal auditors carry out both manual and CAAT information-gathering protocols, consider various sampling techniques, conduct data analysis, document work via work papers, and finally, draw conclusions.

This course provides an overview of the major processes and procedures that an internal auditor may perform while conducting engagement fieldwork. Participants will finish this course with a clear understanding of process engagement fieldwork, beginning with gathering information and understanding the various techniques used by internal auditors to gather that information.

After completing the tasks associated with engagement fieldwork — such as gathering, testing, and evaluating evidence to draw conclusions— the internal auditor must develop conclusions and formulate the recommendations that should be communicated to the auditee and other internal audit stakeholders.

This course provides an overview of the procedures and protocols that are established and carried out to communicate engagement outcomes. While processing the engagement outcomes, it is imperative for internal auditors to consider how the internal audit activity can add value to the organization via communicating conclusions and reconditions; identifying areas that are taking on critical amounts of risk; and establishing action plans and monitoring programs.