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The Essential Guide to Internal Auditing, 2nd Edition

Book Description

The Second Edition of The Essential Guide to Internal Auditing is a condensed version of the Handbook of Internal Auditing, Third Edition. It shows internal auditors and students in the field how to understand the audit context and how this context fits into the wider corporate agenda. The new context is set firmly within the corporate governance, risk management, and internal control arena. The new edition includes expanded coverage on risk management and is updated throughout to reflect the new IIA standards and current practice advisories. It also includes many helpful models, practical guidance and checklists.

Table of Contents

  1. Cover
  2. Title Page
  3. Copyright
  4. Dedication
  5. List of Abbreviations
  6. Chapter 1: Introduction
    1. Introduction
    2. 1.1 Reasoning behind the Book
    3. 1.2 The IIA Standards and Links to the Book
    4. 1.3 How to Navigate around the Book
    5. 1.4 The Essential Guide as a Development Tool
    6. 1.5 The Development of Internal Auditing
    7. Summary and Conclusions
  7. Chapter 2: Corporate Governance Perspectives
    1. Introduction
    2. 2.1 The Agency Model
    3. 2.2 Corporate Ethics and Accountability
    4. 2.3 International Scandals and Their Impact
    5. 2.4 Models of Corporate Governance
    6. 2.5 The Institute of Internal Auditors
    7. 2.6 The External Audit
    8. 2.7 The Audit Committee
    9. 2.8 Internal Audit
    10. 2.9 The Link to Risk Management and Internal Control
    11. 2.10 Reporting on Governance, Risk and Internal Controls
    12. 2.11 New Developments
    13. Summary and Conclusions
  8. Chapter 3: Managing Risk
    1. Introduction
    2. 3.1 What is Risk?
    3. 3.2 The Risk Challenge
    4. 3.3 Risk Management Process
    5. 3.4 Mitigation through Controls
    6. 3.5 Risk Registers and Appetites
    7. 3.6 The Risk Policy
    8. 3.7 Enterprise-Wide Risk Management
    9. 3.8 Control Self-Assessment
    10. 3.9 Embedding Risk Management
    11. 3.10 The Internal Audit Role in Risk Management
    12. 3.11 New Developments
    13. Summary and Conclusions
  9. Chapter 4: Internal Controls
    1. Introduction
    2. 4.1 Why Controls?
    3. 4.2 Control Framework – COSO
    4. 4.3 Control Framework – CoCo
    5. 4.4 Other Control Models
    6. 4.5 Links to Risk Management
    7. 4.6 Control Mechanisms
    8. 4.7 Importance of Procedures
    9. 4.8 Integrating Controls
    10. 4.9 The Fallacy of Perfection
    11. 4.10 The Complete Control Model
    12. 4.11 New Developments
    13. Summary and Conclusions
  10. Chapter 5: The Internal Audit Role
    1. Introduction
    2. 5.1 Defining Internal Audit
    3. 5.2 The Four Main Elements
    4. 5.3 The Audit Charter
    5. 5.4 Audit Services
    6. 5.5 Independence
    7. 5.6 Audit Ethics
    8. 5.7 Police Officer versus Consultant
    9. 5.8 Managing Expectations through Web Design
    10. 5.9 Audit Competencies
    11. 5.10 Training and Development
    12. 5.11 New Developments
    13. Summary and Conclusions
  11. Chapter 6: Professionalism
    1. Introduction
    2. 6.1 Audit Professionalism
    3. 6.2 Internal Auditing Standards
    4. 6.3 Due Professional Care
    5. 6.4 Professional Consulting Services
    6. 6.5 The Quality Concept
    7. 6.6 Supervision
    8. 6.7 Internal Review
    9. 6.8 External Reviews
    10. 6.9 Marketing the Audit Role
    11. 6.10 Creating the Audit Image
    12. 6.11 New Developments
    13. Summary and Conclusions
  12. Chapter 7: The Audit Approach
    1. Introduction
    2. 7.1 The Risk-Based Systems Approach
    3. 7.2 Control Risk Self-Assessment (CRSA)
    4. 7.3 The CRSA Process
    5. 7.4 Integrating Self-Assessment and Audit
    6. 7.5 Fraud Investigations
    7. 7.6 Information Systems Auditing
    8. 7.7 Compliance
    9. 7.8 Value for Money (VFM)
    10. 7.9 The Consulting Approach
    11. 7.10 The ‘Right’ Structure
    12. 7.11 New Developments
    13. Summary and Conclusions
  13. Chapter 8: Setting an Audit Strategy
    1. Introduction
    2. 8.1 Risk-Based Strategic Planning
    3. 8.2 Resourcing the Strategy
    4. 8.3 Managing Performance
    5. 8.4 The Auditor Appraisal Scheme
    6. 8.5 Methods of Staff Appraisal
    7. 8.6 The Audit Manual
    8. 8.7 Time Monitoring System
    9. 8.8 Audit Planning Process
    10. 8.9 The Annual Audit Plan
    11. 8.10 The Quarterly Audit Plan
    12. 8.11 New Developments
    13. Summary and Conclusions
  14. Chapter 9: Audit Fieldwork
    1. Introduction
    2. 9.1 Planning the Audit
    3. 9.2 Interviewing Skills
    4. 9.3 Ascertaining the System
    5. 9.4 Evaluation
    6. 9.5 Testing Strategies
    7. 9.6 Evidence and Working Papers
    8. 9.7 Statistical Sampling
    9. 9.8 Audit Testing and Statistical Sampling
    10. 9.9 Reporting Results of the Audit
    11. 9.10 Structuring the Audit Report
    12. 9.11 Audit Committee Reporting
    13. 9.12 New Developments
    14. Summary and Conclusions
  15. Chapter 10: Meeting the challenge
    1. Introduction
    2. 10.1 The New Dimensions of Internal Auditing
    3. 10.2 The Audit Reputation
    4. 10.3 Globalization
    5. 10.4 Providing Audit Assurances
    6. 10.5 Meeting the Challenge
    7. Summary and Conclusions
  16. Appendix A: Auditing the Risk Management Process: A Case Study
    1. Systems related business objectives
    2. Scope of the audit
    3. Audit approach
    4. Control Objective One
    5. Control Objective Two
    6. Control Objective Three
    7. Control Objective Four
  17. Index