Risk-based Auditing (RBA) – InClass

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Downloadable Brochure – RBA

The need to manage risks has become recognised as an essential part of good corporate governance practice. This has put organisations under increasing pressure to identify all the business risks they face and to explain how they manage them. In fact, the activities involved in managing risks have been recognised as playing a central and essential role in maintaining a sound system of internal control. While the responsibility for identifying and managing risks belongs to management, one of the key roles of internal audit is to provide assurance that those risks have been properly managed. We believe that a professional internal audit activity can best achieve its mission as a cornerstone of governance by positioning its work in the context of the organisation’s own risk management framework.


By attending this highly practical course you will discover how to:

  • Differentiate between value creation and value preservation
  • Link key business objectives to the risk universe
  • Design the risk universe to include key risks within the organization
  • Identify the different role players in combined assurance
  • Applying the three lines of defense or the five lines of assurance model
  • Understanding the risk appetite, measurement of residual risk against the risk appetite
  • Add value to your organisation by the application of risk-based assurance and consulting services
  • Challenge management and sell the benefits of proactive risk management and combined assurance
  • How risk management is used to report exposures to management on a 24/7 basis.
  • Develop and deliver risk based audit reports with real impact, and how it fits into combined assurance
  • Measure success of implementation of a risk management system and a risk based audit plan effectively



Introduction and objectives Understanding Risk and Risk Management Systems

  • What is Risk and Risk Management
  • Approaches to risk management
  • The COSO ERM Framework as a template for success
  • 4 Objectives and 8 Component to Risk Management
  • Risk and your organisations culture
  • Assessing the changing risk environment
  • Risk appetite and the impact on assurance
  • Monitoring the Risk management Process
  • Exercise: Risks and the repertoire of Risk Responses available to organisations

Risk Based Audit

  • Definitions by the IIA
  • Trends in Auditing (from the BRM Internal audit best practice database)
  • The levels of transition from transactions and systems based to risk based assurance
  • The different approaches to internal and external audit
  • Audits primary roles, objectives and concerns
    • Assurance and Consulting
    • Nature of Work
    • Independence and Other Issues
  • What is best practice?
    •  The IIA
    • External Audit
    • Audit Committees
    • Public vs Private Sector
    • International Laws, Regulations and Codes
  • Institute of Internal Auditors professional standards
  • How to ensure you adopt best practice
  • The key challenges for planning audits
  • Exercise Challenges for Internal Audit

Introducing a risk management program

  • Options for involvement of IA in risk management
  • How to introduce a successful risk management program
    • What do management think of you?
    • Have they embraced the wider role for IA?
    • How have they responded to changes already introduced?
    • What challenges have they posed?
  • How to get management commitment
    • The need to measure value added
    • How to sell the benefits
    • Who you need to sell the approach to
  • Low Cost Risk Identification and Measurement Methods
  • Mature Risk Identification and Measurement Methods for Risk registers
  • Risk Response and mitigation techniques and measurement
  • The different measures for Inherent Risk And Residual Risk
  • Monitoring and Assessing actual versus perceived controls
  • Monitoring the effectiveness of risk management in your organisations
  • Exercise a case study and discussion to allow you to experience Risk Workshop in action

Corporate Governance and the Internal Audit Role

  • The Corporate Governance challenges
  • The tensions created for management
  • The opportunities for Internal Audit
  • The converging role of the assurance providers
  • The need to coordinate activities across assurance providers
  • Audit Committees
  • Relationships between Internal and External Audit
  • Exercise Co-ordinating efforts with others



Audit Planning

  • Risk based audit planning
  • The factors you need to consider
  • Determining the level of Assurance required
  • Linking management input from the Risk Management Process into the basis of the audit program
  • Determining audit priorities and developing the audit plan.
  • Which risks are not easily auditable and how should these topics be dealt with?
  • Exercise – Risk based audit planning using the concepts • A specific audit will be chosen for the purpose
  • Brainstorm the issues
  • Build a picture of the risks
  • Consider threats and opportunities
  • Plan the assignment
  • Determine types of test and techniques to use
  • What use could be made of audit tools
  • Determine the threats to success

Risk Based Audit Reporting
(Delegates are asked to bring two recent reports with them to the event for their own reference only)

  • Objectives of reporting
  • Reports and the reporting process
  • Professional standards
  • Structure and Elements of the Audit Report
  • What make a good report?
  • What management expects and Audit s response to those expectations
  • Exercise – 20 best practice questions about your reports

Why Traditional Reports need to Change

  • The psychological dilemma
  • Risk reporting the route to securing action
  • How to link objectives, risk and audit findings
  • Risk as a vehicle for promoting fundamental change


Course Features

  • Lectures 0
  • Quizzes 0
  • Duration 16 CPD hours
  • Skill level All levels
  • Language English
  • Students 1745
  • Certificate No
  • Assessments Yes

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