INTRODUCTION

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OBJECTIVE OF THIS GUIDANCE

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UNDERSTANDING INTERNAL CONTROL

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Internal Control Frameworks and Standards

COSO and GAO

IFAC

IAASB

IFAC and CIPFA

OECD

IIA

ICS

Controls in organizations

Role of controls

Hierarchy

Categories

Phases

Structure

Types

Functions

Resistance to control

AUDIT CONTEXT

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Control oriented approach to an audit

Lifecycle

Pre-audit assessment

Audit planning

Conducting an audit

Reporting and follow-up

Audit database

Benefits of using Internal Control in Auditing

Risks

RELEVANCE OF INTERNAL CONTROL IN AUDITING

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Examination strategies

Top-down: System assessment

Bottom-up: Issues analysis

Vulnerable controls review

Horizontal comparison of domains

Other strategies

Organizational Control Terminology

Entity in its environment

Community

Stakeholders

Regulatory system

Finance

Area of public interest

Domain knowledge

Human capital

Assets

Nature

Assessing Internal Control in an Audit

Internal Control Deficiencies

Control map of an entity

Processing structure

Controls in process

Functions applied to all stages

- Coordination - Communication - Documentation - Reporting

Stage-oriented functions

Initial phase

- Goal-setting - Design - Responsibility - Guidance - Training

Work processes

- Monitoring - Procedures - Tools - Core work - Testing - Incident management

Completion of process

- Product - Results review - Handover - Process optimization