A traditional audit would focus upon the transactions which would make up financial statements such as the balance sheet. A risk-based approach will seek to identify risks with the greatest potential impact. Strategic risk analysis will then include political and social risks such as the potential effect of legislation and demographic change.

In recent years, obstacles on the free movement of capital gradually decreased with increasing global developments and financial mobility has increased with help of its interaction and the convergence of markets . Presence of multinational companies parallel to the emergence of technological developments as a gripping force has further hardened the competition. Achieving a sustainable competitive advantage for the businesses has become dependent on eliminating the negative effects of risks occurring in this changing environment

Prior experience in a risk management or internal audit function will be helpful but is not essential.

- Risk Managers

- Internal Auditors

Demonstrate familiarity with the concept of Risk-based approach to financial audit;

Demonstrate ability to identify the key activities in conducting preliminary engagement activities and to apply their knowledge to complete the given case study;

Demonstrate an understanding of the various risk assessment procedures to be able to apply the knowledge of risk assessment in completing the given case study;

Demonstrate an ability to discern sufficiency and appropriateness of audit evidence and the ability to differentiate between the tests of controls and substantive procedures;

Demonstrate an understanding of basis of evaluation of misstatements in order to be able to discern when to give unmodified opinion, modified opinion, an adverse opinion or a disclaimer of an opinion; and

Role of Internal Auditing Role of Internal Auditing • Identify the Value of Internal Auditing. • Define Internal Auditing. • What is Risk Based Auditing? • Broad overview of Risk Based Auditing • Describe the Internal Audit Standards Related to Risk-Based Auditing. Control (and Risk) Frameworks Control (and Risk) Frameworks • Identify the Elements of COSO Control and ERM Frameworks. • Identify the Internal Control Environment Factors, Risk Management Factors, Control Activity Factors, Information and Communication Factors and Monitoring Factors. • Identify the Limitations of Internal Control and Factors which Override Control Activities. • Identify Roles and Responsibilities in Internal Control. Entity- Entity-Wide Risk Assessment de Risk Assessment de Risk Assessment • Identify Assurance Performance Standard 2130.A1. • Identify the Process for Performing an Entity-Wide Risk Assessment. • Define Business Process. • Identify the Process of Developing an Audit Plan. Risk-Based Audit Engagement Based Audit Engagement Based Audit Engagement • Identify the Process of Performing a Risk-Based Engagement. • Identify the Attributes of a Business Process Definition or Objective. • Identify the Risk-to-Business Processes and Risk Events. 2 • Identify the Four Common Ways to Manage Risk. • Identify the Definition of Controls, the Type of Controls and Evaluation Methods for Controls. • Identify the Guidelines for Reporting the Results of a Risk-Based Audit Engagement

Operational Auditing Overview Operational Auditing Overview

• Define auditing, internal auditing, and operational auditing

• Distinguish between operational auditing and consulting

• Identify types of audits and audit approaches.

Role of Management Role of Management

• Recognise how objectives tie to the organisation’s mission, vision, and

values.

• Practice writing a mission, vision, and value statement and setting

objectives.

Discussion / Case Studies / Illustration will be using examples from some of the

following business processes commonly found in the manufacturing, services and

trading industry:

  Procurement

  Production Planning

  IT

  Sales and Marketing

  Finance and Accounting

  Inventory Management

  Logistic / Distribution

  Human Resource

• Practice using tools and methodologies management uses to achieve

objectives.

• Discuss how to communicate audits role and benefits with

Management.

Management Methodologies Management Methodologies

• Use the COSO framework to evaluate an operational area.

• Understand the various methodologies organisations use to achieve

objectives such as:

- ISO, Balanced Scorecards, and Six Sigma.

Operational Auditing Methodologies Operational Auditing Methodologies

• Identify some objectives of Performance Audits and steps used.

• Identify the steps required using the Value Cost Improvement (VCI)

tool and practice using these methodologies in an Operational Audit.

• Use the risk-based approach to operational auditing.

• Identify the steps used in Business Process Analysis.

Entity- Entity-Level Controls Level Controls Level Controls

• Begin performing an operational audit by applying a control framework

at the entity level.

Performing the Operational Audit Performing the Operational Audit

• Recognise how objectives and scope are created for an operational

audit.

• Recognise the importance of having knowledge of IT controls and the

frameworks associated with them.

• Reporting operational audit results

• Identify ways auditors can add value to management and the

organisation "