Governance, Risk, and Control Knowledge Elements

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  • Comprehensive Textbooks The textbooks contain comprehensive outline summaries of all subjects tested on the CIA examination. The textbooks are designed in a way that follows and covers exactly the examination outline posted by the Institute of Internal Auditors (IIA). There are 4 different books, and each of them covers one of the 4 different parts of the CIA examination. PrepReview SoftwareIncludes preparation sessions, test sessions and exam sessions; User-friendly format allowing users to pick their topics, work on specific lessons, or to take simulated exams.Answers to questions accompanied by a detailed solution that explains the reason behind the answer. Compiles and saves statistics on performanceIncludes over 3300 multiple-choice questionsGives the candidate a better feel of the examinationConnects to a website where the candidate can download extra added practice questions.Participants GuideHandouts include all the slides present on the in-class presentation used by the instructors to present the material. It makes it easier for the candidates to follow the instructors and take notes. There would be no need to waste their times and attention to copy what is presented to them. All they need to do is follow the instructors and take some extra notes based on the explained  material.In-class presentationA PowerPoint Presentations was carefully designed, based on the textbooks and the important material covered in the CIA examination. These presentations are to be used by the instructors, in class, as a mean of support with the teaching methodology. They make it easier for the instructors to explain the material appropriately as well as manage his/her time allocated for a particular lecture.Four presentations were developed for all 4 parts of the CIA examination, and they have been divided into lectures.eFlashcardsMake it easy and convenient to commit to memory the most important principles and rules tested on each section of the CIA Exam. They are a simple, effective and interactive tool for memorizing important material. Tuition-free continuing help (TFCH) PRC’s TFCH is available to you if you fulfill PRCs preparation requirements but do not pass the CIA Exam. TFCH gives you the opportunity to repeat the course tuition free.
  • Governance, Risk, and Control Knowledge Elements

    1. 1. Governance, risk, and Control Knowledge Elements<br />IyadMourtada, CIA, CMA, CFE<br />www.OpenThinkingAcademy.com<br />
    2. 2. Internal Auditing <br />“Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. ” <br /> The Institute of Internal Auditors <br />
    3. 3.
    4. 4. RiskThe possibility of an event occurring that will have an impact on the achievement of objectives. Risk is measured in terms of impact and likelihood.<br />
    5. 5.
    6. 6. Risk Management<br />A process to identify, assess, manage, and control potential events or situations to provide reasonable assurance regarding the achievement of the organization’s objectives.<br /><ul><li> Responsibility of Senior Management
    7. 7. Implemented by Operation Management
    8. 8. Evaluated by Internal Audit Activity
    9. 9. Oversightedby Board or Audit Committee </li></li></ul><li>
    10. 10. Risk Management<br /><ul><li> Responsibility of Senior Management
    11. 11. Implemented by Operation Management
    12. 12. Evaluated by Internal Audit Activity
    13. 13. Oversightedby Board or Audit Committee </li></li></ul><li>Impact vs. Probability<br />High<br />High Risk<br />Medium Risk<br />I<br />M<br />P<br />A<br />C<br />T<br />Share/Transfer<br />Mitigate & Control<br />Medium Risk<br />Low Risk<br />Control<br />Accept (Mointor)<br />Low<br />High<br />PROBABILITY<br />
    14. 14. Control<br />Any action taken by management, the board, and other parties to manage risk and increase the likelihood that established objectives and goals will be achieved. Management plans, organizes, and directs the performance of sufficient actions to provide reasonable assurance that objectives and goals will be achieved.<br />
    15. 15. COSO (Committee of Sponsoring Organizations)<br />
    16. 16. Control Environment<br /><ul><li> Integrity and ethical values.
    17. 17. Management’s philosophy and operating style.
    18. 18. Organizational structure.
    19. 19. Assignment of authority and responsibility.
    20. 20. Human resource policies and practices.
    21. 21. Competence of personnel.</li></li></ul><li>Categories of Internal Control <br /><ul><li> Effectiveness and efficiency of operations
    22. 22. Reliability of financial reporting
    23. 23. Compliance with applicable laws and regulations</li></li></ul><li>COSO ERM<br />
    24. 24.
    25. 25. Responsibility Core internal auditing roles in regard to ERM <br />• Giving assurance on risk management processes.<br />• Giving assurance that risks are correctly evaluated.<br />• Evaluating risk management processes.<br />• Evaluating the reporting of key risks.<br />• Reviewing the management of key risks.<br />
    26. 26.
    27. 27. Which of the following is generally considered one of the main reasons why internal auditors evaluate the effectiveness of their company's internal control structure?<br />To determine whether all risks and exposures of the company have been either reduced or eliminated.<br />To determine whether the established internal controls are functioning as intended by management. <br />To determine the extent of reliance the internal auditors can place on the controls in the process of evaluating the financial statements.<br />To reduce the amount of detailed testing for their external auditors.<br />
    28. 28. Which of the following is generally considered one of the main reasons why internal auditors evaluate the effectiveness of their company's internal control structure?<br />To determine whether all risks and exposures of the company have been either reduced or eliminated.<br />To determine whether the established internal controls are functioning as intended by management. <br />To determine the extent of reliance the internal auditors can place on the controls in the process of evaluating the financial statements.<br />To reduce the amount of detailed testing for their external auditors.<br />
    29. 29. Control Self-Assessment<br />Control self- assessment (CSA) is a useful and efficient approach for managers and internal auditors to collaborate in assessing and evaluating control procedures.<br />The three primary forms of CSA programs are: <br /><ul><li> Facilitated team workshops
    30. 30. Surveys
    31. 31. Management- produced analysis. </li></li></ul><li>Governance<br />The combination of processes and structures implemented by the board to inform, direct, manage, and monitor the activities of the organization toward the achievement of its objectives.<br />
    32. 32. Internal auditing roles in regard to Governance<br />Improving the governance process in its accomplishment of the following objectives (IIA Standard 2130):<br />Promoting appropriate ethics and values within the organization<br />Ensuring effective organizational performance management and accountability<br />Effectively communicating risk and control information to appropriate areas of the organization<br />Effectively coordinating the activities of and communicating information among the board, external and internal auditors, and management<br />Evaluate the design, implementation, and effectiveness of the organization’s ethics-related objectives, programs, and activities<br />
    33. 33. Segregation of Duties<br />
    34. 34. Fraud <br />Any illegal act characterized by deceit, concealment, or violation of trust. <br />These acts are not dependent upon the threat of violence or physical force. Frauds are perpetrated by parties and organizations to:<br /><ul><li> obtain money, property, or services
    35. 35. avoid payment or loss of services
    36. 36. secure personal or business advantage</li></li></ul><li>Which of the following represents the best governance structure?<br />
    37. 37. Which of the following represents the best governance structure?<br />
    38. 38. IyadMourtada, CMA, CIA, CFE, CPLP, M.A.<br />iyad.mourtada@gmail.com   <br />http://ae.linkedin.com/in/iyadmourtada<br />http://twitter.com/iyadmourtada<br />http://www.youtube.com/Iyadmourtada<br />http://www.iyadmourtada.com<br />http://www.facebook.com/iyad.mourtada<br />iyadmourtada<br />www.openthinkingacademy.com<br />

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