This edition of The Internal Auditing Handbook will prove to be an indispensable reference for both new and experienced auditors, as well as business managers, members of audit committees, control and compliance teams, and all those who may have an interest in promoting corporate governance.
Foreword to Second Edition.
Acknowledgements.
1 Introduction.
Introduction.
1.1 Reasoning behind the Book.
1.2 The IIA Standards and Links to the Book.
1.3 How to Navigate around the Book.
1.4 The Handbook as a Development Tool.
1.5 The Development of Internal Auditing.
Summary and Conclusions.
References.
2 Corporate Governance Perspectives.
Introduction.
2.1 The Agency Concept.
2.2 Corporate Ethics and Accountability.
2.3 International Scandals and their Impact.
2.4 Models of Corporate Governance.
2.5 Putting Governance into Practice.
2.6 The External Audit.
2.7 The Audit Committee.
2.8 Internal Audit.
2.9 The Link to Risk Management and Internal Control.
2.10 Reporting on Internal Controls.
2.11 New Developments.
Summary and Conclusions.
Assignment Questions.
Multi-choice Questions.
References.
3 Managing Risk.
Introduction.
3.1 What Is Risk?
3.2 The Risk Challenge.
3.3 Risk Management and Residual Risk.
3.4 Mitigation through Controls.
3.5 Risk Registers and Appetites.
3.6 The Risk Policy.
3.7 Enterprise-wide Risk Management.
3.8 Control Self-assessment.
3.9 Embedded Risk Management.
3.10 The Internal Audit Role in Risk Management.
3.11 New Developments.
Summary and Conclusions.
Assignment Questions.
Multi-choice Questions.
References.
4 Internal Controls.
Introduction.
4.1 Why Controls?.
4.2 Control Framework – COSO.
4.3 Control Framework – CoCo.
4.4 Other Control Models.
4.5 Links to Risk Management.
4.6 Control Mechanisms.
4.7 Importance of Procedures.
4.8 Integrating Controls.
4.9 The Fallacy of Perfection.
4.10 Internal Control Awareness Training.
4.11 New Developments.
Summary and Conclusions.
Assignment Questions.
Multi-choice Questions.
References.
5 The Internal Audit Role.
Introduction.
5.1 Why Auditing?
5.2 Defining Internal Audit.
5.3 The Audit Charter.
5.4 Audit Services.
5.5 Independence.
5.6 Audit Ethics.
5.7 Police Officer versus Consultant.
5.8 Managing Expectations through Web Design.
5.9 Audit Competencies.
5.10 Training and Development.
5.11 New Developments.
Summary and Conclusions.
Assignment Questions.
Multi-choice Questions.
References.
6 Professionalism.
Introduction.
6.1 Audit Professionalism.
6.2 Internal Auditing Standards.
6.3 Due Professional Care.
6.4 Professional Consulting Services.
6.5 The Quality Concept.
6.6 Defining the Client.
6.7 Internal Review and External Review.
6.8 Tools and Techniques.
6.9 Marketing the Audit Role.
6.10 Continuous Improvement.
6.11 New Developments.
Summary and Conclusions.
Assignment Questions.
Multi-choice Questions.
References.
7 The Audit Approach.
Introduction.
7.1 The Systems Approach.
7.2 Control Risk Self-assessment (CRSA).
7.3 Facilitation Skills.
7.4 Integrating Self-assessment and Audit.
7.5 Fraud Investigations.
7.6 Information Systems Auditing.
7.7 Compliance.
7.8 VFM, Social and Financial Audits.
7.9 The Consulting Approach.
7.10 The ‘Right’ Structure.
7.11 New Developments.
Summary and Conclusions.
Assignment Questions.
Multi-choice Questions.
References.
8 Setting an Audit Strategy.
Introduction.
8.1 Risk-based Strategic Planning.
8.2 Resourcing the Strategy.
8.3 Managing Performance.
8.4 Dealing with Typical Problems.
8.5 The Audit Manual.
8.6 Delegating Audit Work
8.7 Audit Information Systems.
8.8 Establishing a New Internal Audit Shop.
8.9 The Outsourcing Approach.
8.10 The Audit Planning Process.
8.11 New Developments.
Summary and Conclusions.
Assignment Questions.
Multi-choice Questions.
References.
9 Audit Field Work.
Introduction.
9.1 Planning the Audit.
9.2 Interviewing Skills.
9.3 Ascertaining the System.
9.4 Evaluation.
9.5 Testing Strategies.
9.6 Evidence and Working Papers.
9.7 Statistical Sampling.
9.8 Reporting Results of the Audit.
9.9 Formal Presentations.
9.10 Audit Committee Reporting.
9.11 New Developments.
Summary and Conclusions.
Assignment Questions.
Multi-choice Questions.
References.
10 Meeting the Challenge.
Introduction.
10.1 The New Dimensions of Internal Auditing.
10.2 The Audit Reputation.
10.3 Globalization.
10.4 Examples.
10.5 Meeting the Challenge.
Summary and Conclusions.
Multi-choice Questions.
References.
Appendix A Induction/Orientation Programme.
Appendix B CRSA Best Practice Guide.
Appendix C A Poem by Professor Gerald Vinten.
Appendix D Analytical Techniques by Sue Seamour.
Appendix E Multi-choice Questions: Answer Guide.
Index.
