The Internal Auditing Handbook

The Internal Auditing Handbook......Page 5
CONTENTS......Page 9
List of Abbreviations......Page 13
Foreword to Second Edition......Page 17
Acknowledgements......Page 19
Introduction......Page 21
1.1 Reasoning behind the Book......Page 22
1.2 The IIA Standards and Links to the Book......Page 23
1.3 How to Navigate around the Book......Page 24
1.5 The Development of Internal Auditing......Page 27
Summary and Conclusions......Page 39
References......Page 41
Introduction......Page 43
2.1 The Agency Concept......Page 44
2.2 Corporate Ethics and Accountability......Page 49
2.3 International Scandals and their Impact......Page 59
2.4 Models of Corporate Governance......Page 67
2.5 Putting Governance into Practice......Page 93
2.6 The External Audit......Page 107
2.7 The Audit Committee......Page 140
2.8 Internal Audit......Page 156
2.9 The Link to Risk Management and Internal Control......Page 161
2.10 Reporting on Internal Controls......Page 162
2.11 New Developments......Page 166
Summary and Conclusions......Page 179
Multi-choice Questions......Page 181
References......Page 188
Introduction......Page 193
3.1 What Is Risk?......Page 195
3.2 The Risk Challenge......Page 196
3.3 Risk Management and Residual Risk......Page 199
3.4 Mitigation through Controls......Page 202
3.5 Risk Registers and Appetites......Page 206
3.6 The Risk Policy......Page 212
3.7 Enterprise-wide Risk Management......Page 223
3.8 Control Self-assessment......Page 233
3.9 Embedded Risk Management......Page 238
3.10 The Internal Audit Role in Risk Management......Page 241
3.11 New Developments......Page 250
Summary and Conclusions......Page 256
Assignment Questions......Page 257
Multi-choice Questions......Page 258
References......Page 262
4.1 Why Controls?......Page 265
4.2 Control Framework – COSO......Page 275
4.3 Control Framework – CoCo......Page 284
4.4 Other Control Models......Page 287
4.5 Links to Risk Management......Page 292
4.6 Control Mechanisms......Page 294
4.7 Importance of Procedures......Page 305
4.8 Integrating Controls......Page 307
4.9 The Fallacy of Perfection......Page 309
4.10 Internal Control Awareness Training......Page 312
4.11 New Developments......Page 319
Summary and Conclusions......Page 321
Assignment Questions......Page 322
Multi-choice Questions......Page 323
References......Page 329
5.1 Why Auditing?......Page 331
5.2 Defining Internal Audit......Page 333
5.3 The Audit Charter......Page 345
5.4 Audit Services......Page 354
5.5 Independence......Page 360
5.6 Audit Ethics......Page 375
5.7 Police Officer versus Consultant......Page 383
5.8 Managing Expectations through Web Design......Page 402
5.9 Audit Competencies......Page 406
5.10 Training and Development......Page 413
5.11 New Developments......Page 423
Summary and Conclusions......Page 430
Multi-choice Questions......Page 432
References......Page 440
6.1 Audit Professionalism......Page 441
6.2 Internal Auditing Standards......Page 449
6.3 Due Professional Care......Page 473
6.4 Professional Consulting Services......Page 477
6.5 The Quality Concept......Page 479
6.6 Defining the Client......Page 489
6.7 Internal Review and External Review......Page 490
6.8 Tools and Techniques......Page 498
6.9 Marketing the Audit Role......Page 503
6.10 Continuous Improvement......Page 511
6.11 New Developments......Page 514
Summary and Conclusions......Page 515
Multi-choice Questions......Page 517
References......Page 522
Introduction......Page 525
7.1 The Systems Approach......Page 526
7.2 Control Risk Self-assessment (CRSA)......Page 543
7.3 Facilitation Skills......Page 551
7.4 Integrating Self-assessment and Audit......Page 559
7.5 Fraud Investigations......Page 563
7.6 Information Systems Auditing......Page 606
7.7 Compliance......Page 656
7.8 VFM, Social and Financial Audits......Page 662
7.9 The Consulting Approach......Page 673
7.10 The ‘Right’ Structure......Page 689
7.11 New Developments......Page 695
Assignment Questions......Page 697
Multi-choice Questions......Page 698
References......Page 714
Introduction......Page 717
8.1 Risk-based Strategic Planning......Page 718
8.2 Resourcing the Strategy......Page 734
8.3 Managing Performance......Page 742
8.4 Dealing with Typical Problems......Page 757
8.5 The Audit Manual......Page 765
8.6 Delegating Audit Work......Page 778
8.7 Audit Information Systems......Page 781
8.8 Establishing a New Internal Audit Shop......Page 791
8.9 The Outsourcing Approach......Page 798
8.10 The Audit Planning Process......Page 809
8.11 New Developments......Page 822
Summary and Conclusions......Page 827
Assignment Questions......Page 830
Multi-choice Questions......Page 831
References......Page 845
9.1 Planning the Audit......Page 847
9.2 Interviewing Skills......Page 859
9.3 Ascertaining the System......Page 878
9.4 Evaluation......Page 884
9.5 Testing Strategies......Page 897
9.6 Evidence and Working Papers......Page 916
9.7 Statistical Sampling......Page 929
9.8 Reporting Results of the Audit......Page 940
9.9 Formal Presentations......Page 973
9.10 Audit Committee Reporting......Page 980
9.11 New Developments......Page 984
Summary and Conclusions......Page 990
Assignment Questions......Page 993
Multi-choice Questions......Page 994
References......Page 1026
10.1 The New Dimensions of Internal Auditing......Page 1029
10.2 The Audit Reputation......Page 1030
10.3 Globalization......Page 1032
10.4 Examples......Page 1034
10.5 Meeting the Challenge......Page 1035
Summary and Conclusions......Page 1043
Multi-choice Questions......Page 1044
References......Page 1045
Appendix A Induction/Orientation Programme......Page 1047
Appendix B CRSA Best Practice Guide......Page 1049
Appendix C A Poem by Professor Gerald Vinten......Page 1053
Appendix D Analytical Techniques by Sue Seamour......Page 1057
Appendix E Multi-choice Questions: Answer Guide......Page 1061
Index......Page 1077