Strong corporate governance is a feature shared by some of the world's most highly reputable and successful companies. It is a set of processes, behaviors, and rules used to ensure that company employees act in the best interest of the company's stakeholders. An important aspect of good corporate governance is the company's ability to establish strong internal controls and risk management processes to meet stated objectives. Internal and external auditors provide opinions on the ability of these systems to manage various risks inherent in the company's business.
In this course, you will learn how to assess internal control and risk management processes as part of an audit. You'll learn what internal control is and examine its components: the internal control environment, identifying and assessing sources of risk, internal control procedures, information and communication, and monitoring. The course also outlines how to select which internal control procedures to review in an audit and what actions to take based on the outcomes of this review, as well as how to assess internal control in an organization that uses the enterprise risk management (ERM) framework.Learning Objectives
- Identify what internal control aims to achieve
- Follow steps to assess internal control processes as part of creating an overall audit plan in a given scenario
- Match components of internal control to examples
- Determine whether a given internal control procedure requires further testing
- Identify the general principles to follow when auditing an organization that uses the ERM framework
- Sequence examples of the phases to take to review the ERM framework