Critical Analysis Bundle

Critical Thinking: A Vital Auditing Competency

In The IIA’s Global Internal Audit Competency Framework, critical thinking is one of the key required personal skills. Most organizations consider critical thinking an indispensable skill for their internal auditors to master, as it leads to improved decision-making and can result in better organizational performance. Effective critical thinking involves collecting and analyzing information, drawing compelling conclusions, and providing recommendations. It helps not only drive personal success but also better enables organizations to achieve their strategic objectives, and is often considered the central ingredient necessary for providing insights that help management better manage risk and create a sustainable control environment.

This course examines the various facets and components of this important core competency, as it demonstrates how critical thinking can be weaved throughout key elements of the audit process, including risk assessments, interviewing, testing and analysis, process documentation, and reporting. Critical thinking is disciplined thinking that is clear, rational, open-minded, and informed by evidence, which makes it ideally suited for application in an audit setting.

Root Cause Analysis for Enhancing Internal Audit Effectiveness

When a problem occurs in an organization, it is followed by many questions — the first of which, and probably the most important, is “why?” To answer this all-important question thoroughly and completely, internal auditors should seek to identify the problem’s origin — the root cause. A root cause analysis should be a core building block to help answer the question of “why,” and enhance an organization’s continuous improvement efforts.

This course will explore key root cause analysis tools and techniques that can be utilized in the planning, fieldwork, and reporting phases of an internal audit engagement; and enhance audit effectiveness, strengthen audit observations, and facilitate deeper discussions with management on issues identified. These tools can be used apart from or in conjunction with existing audit methodologies, tools, and techniques. You will have the opportunity to practice and apply the skills learned through a case study and exercises, which you will be able to integrate into your audit engagements.

Course Objectives

• Identify the purpose, importance, and key terms of root cause analysis.
• Recognize the importance of critical thinking in determining root cause.
• Identify the relevant International Standards for the Professional Practice of Internal Auditing (Standards) and related root cause analysis Implementation Guidance.
• Discover the importance of process documentation, and understanding it as the groundwork for effective root cause analysis, utilizing the process profile worksheet.
• Explore measures of success and trigger events as key elements in root cause analysis.
• Apply root cause analysis concepts, tools, techniques, skills, and templates within an audit setting.
• Describe how root cause analysis can be used to significantly enhance reporting of audit results.