Objective:
- Audit processes
- Demonstrate knowledge of the characteristics of a process
- Apply the plan do check act (PDCA) cycle and the analyze change do prosper (ACDP) improvement cycle
- Evaluate adequacy of controls
- Collect audit evidence
- Prepare process flow diagrams
- Apply techniques to identify risk
- Audit processes that have no procedures or specific requirements
- Use process audit techniques to support management systems
- Determine process effectiveness
- Compose an audit report assessing compliance, controls, risk, and process optimization
Content:
- Introduction to Process Auditing: Defining the audit universe, understanding the business process approach, and identifying stakeholders.
- Process Flow Auditing (PFA) Techniques: Using flowcharts and swim lane diagrams to map processes, identify risks, and document controls.
- Risk Assessment and Internal Control: Assessing risks, evaluating control design, and testing internal controls across key cycles (e.g., revenue, procurement, production).
- Specific Business Process Auditing:
- Revenue Cycle: Validating invoicing, revenue recognition, and debtor management.
- Production/Conversion Cycle: Auditing inventory control, costing, and manufacturing processes.
- Treasury/Finance Process: Reviewing cash flow management, investment planning, and dividend payments.
- Audit Testing and Analytics: Applying analytical procedures, audit sampling, and substantive testing to identify errors or fraud.
- Report Writing and Value Addition: Developing recommendations based on root causes, conducting follow-ups, and delivering value-focused audit reports.
- Key Skills Developed:
- Root Cause Analysis: Identifying the underlying causes of control breakdowns rather than just symptoms.
- Efficiency Analysis: Evaluating if processes are achieving operational goals effectively.
- Operational Auditing: Shifting from pure financial auditing to performance-driven, high-impact auditing.
For Whom:
Internal auditors, risk managers, and professionals in the public and private sectors looking to improve their Auditing skills