Internal Audit inc. Corporate Governance and Financial Risk Management

Institution HRODC Postgraduate Training Institute, A Postgraduate-Only Institution
Method At the institution
Location London
Type Postgraduate
Course fee By request

+ Information by E-mail

Internal Audit inc. Corporate Governance and Financial Risk Management

Objectives By the conclusion of the specified learning and development activities, delegates will be able to:

Discuss, with confidence, the importance of internal account to an organisation

Use a manufacturing organisation, to provide an example of the way in which the cost elements might be apportioned, thereby paving the way for an effective internal accounting structure

Explicitly explore the functioning of a ‘Responsibility Accounting System’

Explain the general function of internal audit in national organisations and international operations, on the other.

Effectively explore the advisory role of internal audit in organisations

Distinguish between internal and external auditing

Illustrate the extent to which an effective internal auditing regime can enhance to work of the external auditor

Exhibit a heightened understanding of the internal audit structure and its relation to corporate management, using an organisation of choice, as an example.

Explain the accountability of corporate directors to the internal auditing group

Explain the importance of an internal auditing policy to the role and functioning of an internal audit department

Use case examples to illustrate the inclusions of a typical internal auditing policy

Resolve the scenario in which an internal auditing policy conflicts with ‘Audit professionalism’ and Public Expectation

Suggest how to remedy a situation in which an internal auditing policy is in direct contravention of statutory directives or guidelines

Demonstrate their awareness of the role of the internal auditor in the implementation of the ‘Board Approved’ Audit Directive

Illustrate their ability to design, implement, monitor and evaluate an internal audit programme.

Internalise the importance of training and development in the enhancement of the audit management function

Give a brief explanation to the Sarbanes Oxley (SOX) Act and at least 3 of the associated requirements for audit firms;

Illustrate two key responsibilities for internal auditors, under the ACT;

Evaluate the chief consequence of the internal auditor’s omission, under the ACT

Define corporate governance in relation to the processes, customs, policies, laws and institutions affecting the way a corporation is directed, administered or controlled.

Relate corporate governance to the relationships that persists between internal and external stakeholders, particularly in relation to the establishment of organisational goals and objectives

Demonstrate a heightened understanding of the organisation’s responsibility and accountability to its shareholders as primary stakeholders

Exhibit a heightened awareness of the organisation’s accountability to its Board of Directors

Accurately locate an organisation’s management and workers within the ‘internal-external-stakeholder-spectrum’

Distinguish between winding up or insolvency, Bankruptcy, Receivership, and Administration

Demonstrate an understanding of the difference that exists between ordinary and preference shares

Assess the implications of the ‘Receivership’ of a company for its statutory, primary and secondary creditors

Explain the order in which the proceeds of a company’s assets will be distributed among its creditors, in the event of it falling into ‘Receivership’

Exhibit an understanding of what constitutes the rights and equitable treatment of shareholders

Explain how the interests of secondary stakeholders can be preserved

Outline the roles and responsibilities of the Board of Directors

Outline salient steps that can be taken to preserve an organisation’s integrity

Establish the array of issues that are enshrined in a company’s ethical behaviour

Determine the importance of operational ‘transparency’ in the face of the regulatory authorities’ demand and in the enhancement of shareholder and client confidence

Define risk in an organisational context

Demonstrate their understanding and ability to apply the issue of ‘Financial Risk Management’ to it broader context

Define, with examples, the concepts or financial risk and financial risk management within an organisational setting

Exhibit their mastery of the link between market dynamics and financial risk

Demonstrate their understanding of Liquidity Risk

Pinpoint the bases of Operating Risk within organisations

Draw on cases to highlight the vulnerability of organisations to operational risks.

Illustrate the role of the internal audit team in identifying, verifying and addressing the risk associated with internal organisational members

Demonstrate their ability to use audit trail or audit log to indentify perpetrators of internal fraud

Devise a mechanism whereby organisational personnel vulnerable to outside influence, that might form the basis of ‘insider information’ that could be used frequently, might be identified and the appropriate risk management measure applied.

Illustrate their competence in identifying operational activities that are prone to Settlement Risk, proposing the measures that might be taken to reduce the associated financial risk

Analyse organisational Corporate Strategy, identifying the associated financial risk and employing the appropriate Risk Management Strategy

Demonstrate the various issues that are associated with The Currency Derivatives Market, indicating the extent to which their organisations are exposed and the degree to which financial risk management can reduce or avert the associated financial risk

Demonstrate an understanding of the external environmental, uncontrollable forces that affect an organisation’s operation and how they might be circumvented to effectively manage its Financial Risk

Explain how the Legal and Political Risk Environments will affect an organisation and the efforts that can be applied in the interest of its continuity

Indicate their understanding ‘Risk as an Economic Factor’ within an organisational context and the counter measures that can be applied

Explain how Technology might pose a financial Risk to an organisation and how the effect might be circumvented or even capitalised on

Identify the financial Risk associated with Socio-Cultural Change and how their effect might be minimised or exploited

Exhibit a heightened awareness of Asset Behaviour and Pricing Implications and their consequence for organisational operation

Demonstrate an awareness of ‘Credit and Counterparty Risk’ and the organisational safeguards that might be applied

Draw on their previous and newly acquired knowledge to demonstrate their understanding of Risk in Financial Institutions and the financial risk management options that are available

Demonstrate their understanding of financial risk management in Banking

Explain to non-financial corporate personnel the financial risk associated with the Equity Market

Use examples from recent international events to illustrate the financial risk that is associated with the Futures Market and how these might be addressed

Explain Economic Exposure and its financial risk implications

Distinguish between Transaction Exposure and Translation Exposure, explaining their financial risk implications and remedy.
Practical experience Use of Video Cases; Written Cases; Simulations and Industrial Visits.
Entry requirements 1stDegree or equivalent Qualification.
Academic title Diploma-Postgraduate in Internal Audit
Course description
Course Programme for Internal Audit, Incorporating Corporate Governance and Financial Risk Management

Module 1 - Introduction, Fundamental Concepts and Issues in Internal Audit

Internal Accounting

Internal cost elements

a ‘Responsibility Accounting System’

Internal Auditing

Differences Between Internal And External Audit

Internal audit structure and Corporate Governance

Module 2 - Internal Audit in Practice

Internal Auditing Policy

Enhancing the role of the External Auditor

Internal audit and internal conflict

Internal audit and statutory conflict

Audit Management

Audit programme development

Audit programme monitoring

Audit programme evaluation

Training and development in internal audit

Sarbanes Oxley (SOX) Act and its implications for Internal Auditing of International Firms

Key responsibilities for internal auditors, under the ACT

Consequences for Internal Auditors who operate below the expected standards.

Module 3 - Internal Audit and Corporate Governance

Defining corporate governance

Exploring corporate governance and the relationships between internal and external stakeholders

The organisation’s responsibility and accountability to its shareholders

The organisation’s accountability to its Board of Directors

Making ‘sense’ of the ‘internal-external-stakeholder-spectrum’

The difference between ordinary and preference shareholders

Distinguishing between winding up or insolvency, Bankruptcy, Receivership, and Administration

Assessing the implications of the ‘Receivership’ of a company for its statutory, primary and secondary creditors

Rules for distributing the proceeds of a company’s assets in ‘Receivership’

Rights and equitable treatment of shareholders: Interests of other stakeholders

Recognising the organisation’s legal obligations to all legitimate stakeholders.

Role and responsibilities of the board

Integrity and ethical behavior: Disclosure and transparency:

Module 4 - Internal Audit and Financial Risk Management

Risk: A Working Hypothesis

Defining Risk – Generally

Financial Risk: A Plausible Definition

Financial Risk in an Organisational Setting

Financial Risk and ‘Market Dynamics’

Liquidity Risk

Operating Risk

Fraud Risk

Settlement Risk

Corporate Strategy and Risk Management

The Currency Derivatives Market

Financial Risk and Unpredictability: Uncontrollable Environmental Issues

Asset Behaviour and Pricing Implications

Credit and Counterparty Risk

The Legal and Political Risk Environments

Risk as an Economic Factor

Technological Risk Factor

Risk associated with Socio-Cultural Change

Financial Risk Settings: A Meta-Analytical Exploration

Risk in Financial Institutions

Banking Risk

Risk and the Currency Market

Risk and the Equity Market

Futures Market Risk

Financial Exposure As Risk: An Introduction

Economic Exposure

Transaction Exposure

Translation Exposure

Calculating Risk in Financial Exposure