Internal Audit inc. Corporate Governance and Financial Risk Management

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HRODC Postgraduate Training Institute, A Postgraduate-Only Institution

Comments about Internal Audit inc. Corporate Governance and Financial Risk Management - At the institution - London - Greater London

• 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

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