COSO - Based Internal Auditing

Who will benefit from this course?

This course provides participants an introduction to both the COSO Internal Control – Integrated Framework (2013) and Enterprise Risk Management – Integrated Framework (2017). This course is intended for internal and external auditors new to COSO-based auditing and/or COSO-based risk management.

Course Objectives

• Compare and contrast the COSO Internal Control and ERM frameworks.
• Develop the level of knowledge of the COSO Internal Control Framework needed to carry out internal audit roles and responsibilities.
• Develop the level of knowledge of the COSO ERM Framework needed to carry out internal audit roles and responsibilities.
• Clarify the implications that the COSO frameworks present to the internal audit profession and individual internal audit activities.
• Demonstrate the use of COSO principles and practices in overall and audit engagement planning.
• Develop the skills needed to use COSO principles and practices to perform the work on audit engagements.
• Develop the skills needed to use COSO principles and practices to communicate the results of audit engagements.

Course Topics

COSO Frameworks: The Basics

• Discuss COSO background/history.
• Examine COSO’s definitions of Internal Control and ERM.
• Review COSO Internal Control and ERM objectives and components.
• Discuss the updated COSO Internal Control from an internal audit perspective.
• Understand the relationship between Governance, Risk Management and Internal Control.
• Discuss the IA implications for “Turning the Principles into Positive Action.”

COSO Internal Control: A Closer Look

• Review Control Environment Principles.
• Examine Risk Assessment and Control Activities Principles.
• Discuss Information/Communication and Monitoring Activities Principles.
• Demonstrate the importance of “soft controls.”
• Discuss the “Three Lines of Defense in Effective Risk Management and Control.”
• Examine the implications for Internal Auditors.

COSO ERM: A Closer Look

• Compare COSO ERM factors and Internal Control principles.
• Understand key ERM concepts and terms.
• Discuss “ERM Risk Assessment in Practice/Thought Leadership.”
• Examine the implications for Internal Auditors.

IPPF & COSO Framework Connections

• Show where IPPF Standards and the COSO Frameworks are connected – and discussing potential opportunities/challenges for Internal Auditors.
• Examine a COSO-based Internal Audit process.
• Use IPPF and IIA resources to develop COSO-based IA tools.

COSO-Based Audit and Engagement Planning

• Compare approaches and techniques used establish the IA activity’s risk-based plan and priorities.
• Compare tools and techniques used to plan IA engagements.
• Apply COSO-based practices on overall IA activity and individual engagement planning case studies.

Using COSO in Performing the Work

• Discuss the COSO-based skills and practices used in performing the work.
• Examine the types of information that may be needed to support conclusions.
• Compare approaches used to evaluate soft controls.
• Demonstrate how to use COSO in root cause analysis.
• Use COSO-based practices on case study applications.

Using COSO in Communicating the Results

• Compare approaches and techniques used to communicate individual engagement and overall IA activity results.
• Use COSO-based practices on case study applications.
• Discuss opportunities to increase that value of IA services and emerging issues.