Chapter Outlines

Chapter 01. Introduction to Internal Auditing

This chapter presents internal auditing as a dynamic and integral part of an organization’s governance framework. It outlines the evolution, roles, and fundamental objectives of internal auditing, emphasizing its importance in risk management, control, and governance processes. The chapter further discusses the trends shaping the profession’s future and the typical career paths and competencies required for success.

Chapter 02. Professional Standards, IPPF, and Ethical Practices

This chapter delves into the standards that guide internal auditors, particularly those outlined by the Institute of Internal Auditors (IIA) within the International Professional Practices Framework (IPPF). Students will learn about the code of ethics that internal auditors must adhere to and the importance of integrity and objectivity in their work. The chapter also discusses the role of ongoing professional development and adherence to established practices for audit quality and credibility.

Chapter 03. Corporate Governance

Governance is the framework of rules, practices, and processes by which corporations are directed and controlled. This chapter will cover the auditor’s role in assessing and enhancing governance structures, ensuring compliance with relevant regulations, and aligning corporate strategies with risk management and control processes.

Chapter 04. Risk Management

This chapter will explore the concepts and practices of risk management, learning to identify, assess, and prioritize risks. The chapter will cover the integration of risk management within business processes and the internal auditor’s role in evaluating the effectiveness of an organization’s risk management strategies.

Chapter 05. Internal Controls

Focusing on the mechanisms designed to ensure reliable financial reporting, compliance with laws and regulations, and effective and efficient operations, this chapter will discuss the design of internal controls, implementation, and assessment. It will also highlight the auditor’s responsibility in evaluating control environments and recommending improvements.

Chapter 06. Managing the Internal Auditing Function

This chapter will provide insights into the organization, leadership, and management of the internal audit function. It will discuss staffing, skill development, performance measurement, and the structure of the audit department. It will also highlight the strategic aspects of managing the function, including resource allocation, talent management, and developing a quality assurance and improvement program.

Chapter 07. Internal Audit Planning and Strategy

This chapter covers the process of planning and organizing the internal audit function. It starts with internal audit strategic planning, which involves setting long-term goals and objectives for the internal audit function and developing a plan to achieve them. This includes identifying the organization’s key risks, determining the internal audit resources needed to address those risks, and establishing a framework for evaluating the effectiveness of the internal audit function.

Chapter 08. Performing the Audit: Approach, Techniques, and Tools

This chapter will introduce methodologies and tools to conduct audits. It will cover everything from preliminary surveys, audit program development, and sampling methodologies to using technology in audits, including data analysis tools.

Chapter 09. Performing the Audit: Functional, Operational, or Business Areas

Different business functions come with specific risks and controls. This chapter will focus on approaching audits in various functional areas, such as finance, operations, IT, and HR, with tailored audit techniques and considerations for each domain.

Chapter 10. Internal Audit Reporting, Communication, and Follow-up

Effective communication is crucial to the audit process. This chapter will cover the preparation of clear, concise, and impactful audit reports, the communication of findings to stakeholders, and the processes involved in following up on recommendations and tracking remediation efforts.

Chapter 11. Auditing in the Public and Not-for-Profit Sector

Internal auditing within public and not-for-profit sectors poses unique challenges and requirements. This chapter will examine the different standards, practices, and expectations in these sectors, including discussions on regulatory compliance, fund accounting, and the role of the Auditor General.

Chapter 12. Advanced Internal Auditing Topics: Analytics, Agile Auditing, and Continuous Auditing

The final chapter looks to the future of internal auditing by exploring emerging trends such as the use of analytics to improve audit processes, the principles of agile auditing for more responsive and iterative audit practices, and the implementation of continuous auditing techniques for real-time risk assessment and control testing.