IA-102 EMBEDDING CRITICAL THINKING IN THE INTERNAL AUDIT PROCESS

IA-102 EMBEDDING CRITICAL THINKING IN THE INTERNAL AUDIT PROCESS

DESCRIPTION

Organizations today are looking to their audit departments for company insights, risk and fraud expertise, in-depth industry knowledge, and forward-looking reporting. Auditors are expected to be open-minded and analytical thinkers. Decision-making skills and professional judgment are a daily necessity in the internal audit process. Teaching auditors to utilize critical thinking skills throughout the audit process strengthens their ability to identify and assess risk, prioritize testing, align audit objectives with business objectives, and identify true value-add activities.

 

This course provides the skills and techniques necessary to embed critical thinking skills in all aspects of the audit cycle. The tools and techniques shared will guide your use of critical thinking skills in risk assessment, interviewing, audit evidence gathering, and report writing. Real-life examples of failures and successes of critical thinking in internal audit will be covered to further the learning process.  This course is interactive with multiple hands-on exercises and class participation to provide opportunities for you to practice what you learn.

LEARNING OBJECTIVES

  • Understanding the process of critical thinking and intellectual traits
  • Discussing the meaning and application of professional judgment
  • Demonstrating how critical thinking helps improve the audit process
  • Comparing and contrasting auditor judgment and critical thinking skills
  • Reviewing ways to develop critical thinking to enhance the audit process
  • Covering the use of critical thinking during the risk assessment, interviewing, and reporting cycles
  • Reviewing the importance of appropriate, sufficient, and persuasive audit evidence

 

COURSE OUTLINE

Professional Standards

  • International Standards for the Professional Practices of Internal Auditing—IIA
  • Government Audit Standards—GAO
  • IT Standards, Guidelines, and Tools and Techniques for Audit and Assurance and Control Professionals—ISACA

Critical Thinking

  • Key terms and definitions
  • Critical thinking levels and characteristics
  • Reasoning and professional judgment
  • Understanding biases, fallacies, and inferences in the thinking process
  • Intellectual thinking traits and standards

Professional Judgment

  • What is professional judgment?
  • Applying professional judgment to the audit process
  • Professional Judgment Framework
  • Developing and strengthening professional judgment

Embedding Critical Thinking in Internal Audit

  • Audit Maturity Model
  • Planning—risk-based audits
  • Determining scope and levels of risk—impact and likelihood
  • Determining audit prioritization
  • Interviewing and questioning
  • Assessing process and testing
  • Identifying what to test, how to test and when to expand testing
  • Determining sufficiency of testing evidence
  • Keeping the focus on the objective
  • Evidence and evidence gathering
  • Quality of evidence and assurance
  • Evidentiary sources and reliance
  • Methods of gathering evidence
  • Communicating and reporting
  • 5 Cs—condition, criteria, consequence, cause, corrective action
  • Findings—significance, relevance, and framing
  • Selecting impactful evidence—charts, graphs, pictures, flow charts

Case Studies and Exercises

  • Failures in Audit that could have been prevented with critical thinking
  • Success stories using critical thinking in Audit
  • Multiple hands-on exercises utilizing critical thinking skills
Duration

CPE

Delivery

Field

Level

Who Should Attend

Prerequisites

Advanced Preparation

2 Days

16

Group-Live

Auditing

Intermediate

Internal audit staff and management, operations staff, and management

Auditors with at least 2 years of experience

None