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361683: Internal Auditing (Online) MGMT-X 423.2

Summer 2018
Section 1
4 Credits
06/27/2018 to 09/05/2018
Modified 03/04/2018


Description
This course introduces students to the internal audit profession and the internal audit process and is designed for accounting, auditing, and
business students; CPAs, CIAs, and CMAs or candidates; controllers and internal auditors; financial and auditing managers; corporate
executives; and federal and state auditors and managers. Topics include the definition of internal auditing, The IIA's International Professional
Practices Framework (IPPF), risk, governance and control issues, and conducting internal audit engagements, including report writing and
interviewing skills. Additional topics include Internal Auditing (IA) standards; internal controls; managing the IA department; IA working papers,
procedures, evidences, sampling, and flowcharting; 30 major areas of operational auditing, such as production, marketing, finances, EDP,
purchasing, and personnel; fraud detection, including a discussion of the latest developments in financial crimes; major areas of management
auditing; IA reports; and evaluation of the IA function.


Outcomes
Learning Goals

By the end of this course, a successful learner should be able to: 

Delineate the roles and responsibilities of internal auditors (IA) within an organization and its professional practices

Specify and interpret governance, risk management and internal control concepts

Apply the process for providing a risk-based, process and control-focused internal auditing approach, including:
Considerations in the planning phase
Risk assessment and analysis
Collecting and documenting audit evidence 
Communicating audit results 

Recognize specific risk issues related to information technology and fraud situations

Identify the similarities and difference between assurance and consulting engagements

Most students are taking this course in order to earn enough credits to sit for the CPA exam. This course will be much different from your other
accounting courses, as there are fewer “hard” rules to memorize.  This course covers many concepts and skills that CPAs will find valuable for
their accounting career, as well as those who move into operational/financial management or non-accounting careers.


Materials

Internal Auditing (Assurance &Advisory Services)

Author: Urton L. Anderson, et al
Publisher: The Internal Audit Foundation
Edition: 2017
ISBN: ISBN-13: 978-0-89413-987-1

 ISBN-13:  978-0-89413-987-1

(Earlier versions of the textbook, Internal Auditing: Assurance & Consulting Services by Kurt F. Reding et al, published by The Institute of
Internal Auditors Research Foundation, 2013 editon. ISBN-13: 978-0-89413-740-2 (2009 edition; ISBN 978-0-89413-643-6 or 2007 edition;
ISBN 978-0-89413-610-8 can also be used)

Other Instruction materials:   (refer to Lectures/PowerPoint and other materials included in the weekly modules) 

External links-

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Institute of Internal Auditors:  www.theiia.org

Information Systems Audit & Control Association:  www.isaca.org

Control Framework:  www.coso.org

Internet/Discussions Forum etiquette:  www.albion.com/netiquette/corerules.html

Technical Support:  To contact UCLA Extension Course Management Support, call them at 310-206-4563 from 8am-5pm on weekdays, or
email them at support@unexonline.zendesk.com.  To get support from Canvas Support Team, click on the “Help” link on the upper right
corner of the Canvas page, and click on “Live Chat” or “Report a Problem”.


Evaluation

Breakdown
Course Grading Policies   

Grading:  300 points possible for all course components

Grades are assigned based on quality of work and timely completion as follows:  

1. Discussion participation:

Varying points are given for each discussion, with total points for all DQs worth 40% of  the final grade. A minimum of 2 postings for
each Discussi5555n Question is required to be eligible for maximum number of points.  A substantive posting should include your
assessment and critical analysis of what you read (more than just cutting & pasting passages from resources), what you
experienced, a short synopsis of key concepts, or why some arguments/assumptions could be incorrect. Please review the
Discussion-Reflection Rubric for further information on grading guidelines.
2. Assignments & Quizzes:

Varying points are awarded for each assignment and quizes, worth 40% of your total grade.
3. Final Exam:

The final exam is comprised of 28 multiple choice and 4 T/F questions, for a total of 60 points, or 20% of your grade.  The final will be
available one week prior to the due date which allows for plenty of time to complete the exam.  The final will be comprehensive and
cover materials from the discussions, assignments and readings.  You will have only 1 attempt on this exam.   The final exam is due
at 11:59 PM Tuesday night.

Grades are earned as follows:

Letter grade       Range:

A                       100% to 94%

A-                      < 94% to 90%

B+                     < 90% to 87%

B                       < 87% to 84%

B-                      < 84% to 80%

C+                     < 80% to 77%

C                       < 77% to 74%

C-                      < 74% to 70%

F                        < 70% to 0%

Discussion Rubric

This rubric will be used to assess the quality of your participation in the online discussion forums.  Please use this tool as a guide when
constructing your postings.

  Unsatisfactory Basic Proficient Distinguished

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Mechanics Uses Uses complete Uses complete Uses complete

of the incomplete sentences and sentences, sentences,
Posting sentences, is the posting is organization is organization is
unstructured in comprehensible. evident, and clear and
its The organization the posting thoughtful, the
organization, could be includes no posting is
and includes improved to more than one grammatically
frequent or present a more mechanical correct, and free
consistent coherent error of spelling
errors in argument, (grammar, errors. The tone
mechanics statement, or spelling, is clear and
(grammar, question. usage) per respectful.
spelling, usage) Includes 2-3 paragraph. The
in each mechanical tone is clear
paragraph. The errors grammar, and respectful
posting is spelling, usage)
unreadable and per paragraph. 
there is a The tone is
distinct lack of respectful.
tone.

Participation Provides Provides Provides Provides

in the minimal comments, and comments, comments,
Discussion comments and some new discussion, discussion,
information to information on a questions, and questions, and
other sporadic basis. new new information
participants in Interacts with information on on a regular,
the forum. only 1-2 a fairly regular active, and
participants in basis. Interacts weekly basis.
the forum. with a few Shows a high
participants in degree of
the forum. interaction with
other
participants in
the forum.

Content of Writes a Demonstrates a Demonstrates Demonstrates a

Posting general or restricted an adequate solid
superficial understanding understanding understanding
posting that is of the concepts, of the of the concepts,
unrelated to the topics, and ideas concepts, topics, and ideas
discussion at as evidenced by topics, and as evidenced by
hand and/or posting ideas as thoughtful
posts no information that evidenced by responses and
comments. could be derived posting questions that
from prior posts superficial, or show a clear
and/or including general connection (are
highly general statements in integrated) with
comments. the forum. the course
Includes a few material at hand.
details in the The posting
posting. shows depth,
and includes
many
supporting
details.

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Critical Provides no Indicates Indicates Demonstrates a

Thinking evidence of agreement or agreement or critical analysis
Evidenced agreement or disagreement disagreement of an existing
by Posting disagreement with an existing with an posted idea or
with an existing discussion but existing introduces a
discussion. provides no discussion different
justification or including a interpretation to
explanation for limited an existing
comments. explanation or concept or idea.
justification. Includes
Provides comments,
comments, discussion, and
discussion, questions that
and questions have a clear
without a clear connection (are
connection to integrated) with
the course the course
material at material at hand.
hand.

 
Reflection Rubric
During your course, you will be asked to reflect on your work and how you will apply what you have learned.  This rubric will help you
assess your reflections.

  Unsatisfactory Basic Proficient Distinguished

Coherence & One cannot discern Paper adequately Paper describes Paper thoroughly
Relevance the learner’s describes the the learner’s describes the
perceptions and learner’s thoughts, learner’s perceptions,
attitudes or what perceptions, perceptions, attitudes and what
he or she learned. attitudes and what attitudes and he or she learned
she or he learned; what was learned; from the project.
however, gaps and a few gaps or
omissions are omissions are
present. present.

Transformation It is not clear how There are gaps in Learner Learner clearly
the experiences the learner’s adequately describes how the
transformed the description of how describes how the experiences helped
learner. the experiences experiences transform him or her
helped transform helped transform into a scholar-
him or her into a him or her into a practitioner.
scholar-practitioner. scholar-
practitioner.

The rubrics provide a way for you and your facilitator to agree on the level of performance. It provides the performance-based criteria that
help to steer discussions so that they are effective and reflect on your learning experiences.


Course Policies

Planning Your Study Time

To plan your study time, it is estimated that you will spend 3 hours per week "in class" with the instructor and approximately 7 additional
hours per week outside of class studying for exams, reading, and completing assignments. Depending on the extent of your academic
preparation and recent college-level coursework in this topic area, the amount of study time needed may vary considerably.

Instructor Expectations
I'm looking forward to working with you, learning about what you're educational goals are, and how you plan to use the course in your
career. We bring different kinds of experiences and knowledge and each of you will have different needs, expectations and concerns. As
your facilitator, it will be easier to help meet your needs if you communicate these concerns directly to me on a timely basis. I hope you'll
always find that I am responsive and supportive.

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Here are a few expectations I would like emphasis:

Commit to doing your best in this course and interacting with your classmates.

Read the chapters and submit the completed assignments on time.

Participate in group discussions on a timely and meaningful basis.

Stay on schedule so everyone can benefit from each other’s postings/replies.

“Discussion” (DQ) & Interacting with Classmates: Each student is expected to post a well-researched answer to each discussion question,
and post thoughtful replies to at least one other student’s postings. This means a minimum of 2 postings per DQ. Pacing your work earlier
in the week will give you more time to get feedback from your classmates, learn from their viewpoints and allow you to further
demonstrate and enhance your understanding of the issue or topic with your replies. Your responses should include more than phrases
such as "I agree with that" or "Interesting comment." A substantive posting should include your assessment and critical analysis of what
you read, what you experienced, a short synopsis of key concepts, or why other arguments could be incorrect.

Your posts should feature good writing, correct spelling and mechanics. Internal auditors are judged by the quality, clarity and conciseness
of their communication skills. Communication should be professional and use good netiquette. In the spirit of scholarly discussion,
Responses that disagree with others should apply to the topic and should be respectful. Your postings should help you to test your ideas,
reinforce what you have learned, and share resources with others in the class. Please review the Discussion & Reflection Rubric sheets for
more details. Posts/replies made after the assigned week will lose points as discussed in the grading section.

Instructor’s Comments in the DQs: I will be in the classroom several times a week to make sure the discussions are heading in the right
direction and/or provide clarification, as needed, to stimulate interaction among the group. And typically, I will summarize the discussions
with some closing comments that emphasis a real world perspective on the auditing issues involved.

No posted messages are private - so please feel free to call me directly if you have any personal or specific questions that the group may
not benefit from. I'd like to talk and get to know you. Of course, you can send an email and I should respond within 24 hours.

If after reading the assignment/DQ, you do not understand what to do, please call or email me so that I can explain the assignment. This is
much better than turning in an assignment that is not done correctly or timely and losing points.

Deadlines and Late Submission

Life happens and I understand that work and family emergencies occur.  If you will contact me before the work is late, we can try to work
out something that will mesh with your schedule.  However, if you don’t contact me before-hand, and the work from one week is posted
late during the next week, you’ll lose up to twenty percent for each day that it is late.  After the work is more than 7 days late, it will no
longer receive a grade.  There are no extensions for the class.  All work must be turned in by the last day of class.


Institutional Policies

Student Conduct
Students are subject to disciplinary action for several types of misconduct or attempted misconduct, including but not limited to
dishonesty, such as cheating, multiple submission, plagiarism, or knowingly furnishing false information to the University; or theft or
misuse of the intellectual property of others or violation of others' copyrights. Students are encouraged to familiarize themselves with
policy provisions which proscribe these and other forms of misconduct at: https://www.uclaextension.edu/pages/str/studentConduct.jsp
(https://www.uclaextension.edu/pages/str/studentConduct.jsp)

Services for Students with Disabilities

In accordance with the Americans with Disabilities Act of 1990, UCLA Extension provides appropriate accommodations and support
services to qualified applicants and students with disabilities. These include, but are not limited to, auxiliary aids/services such as sign
language interpreters, assistive listening devices for hearing-impaired individuals, extended time for and proctoring of exams, and
registration assistance. Accommodations and types of support services vary and are specifically designed to meet the disability-related
needs of each student based on current, verifiable medical documentation. Arrangements for auxiliary aids/services are available only
through UCLA Extension’s Service for Students with Disabilities Office at (310) 825-7851 or by email at access@uclaextension.edu. For
complete information see: https://www.uclaextension.edu/pages/str/studentswithDisabilities.jsp
(https://www.uclaextension.edu/pages/str/studentswithDisabilities.jsp)

Incompletes
Your instructor may post the interim grade Incomplete/I if at the end of the class your overall work is of passing quality but a portion could
not be submitted for understandable reasons (e.g. illness). It is your responsibility to petition your instructor for permission to submit work
late and to provide an explanation, and it is his or her sole decision whether to accept the explanation. If permitted, the Incomplete/I grade
will be posted and a time frame defined for you to submit the missing work, ranging from one to twelve weeks. Incomplete/I grades that
remain unchanged after twelve weeks will lapse to F, NP or U. Receiving an I grade entitles you to submit only the missing work your

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instructor has agreed to accept late, and does not allow other work to be retaken or oblige UCLA Extension to provide continuing access to
course materials via Canvas. The Incomplete/I grade is not an option for courses that do not bear credit, such as 700, 800, or 900-level
courses. For complete information, see: https://www.uclaextension.edu/pages/str/grading.jsp
(https://www.uclaextension.edu/pages/str/grading.jsp)

All Grades are Final

No change of grade may be made by anyone other than the instructor, and then, only to correct clerical errors. No term grade except
Incomplete may be revised by re-examination. The correction of a clerical error may be authorized only by the instructor of record
communicating directly with personnel of Student and Alumni Services.

Sexual Harassment
The University of California is committed to creating and maintaining a community where all individuals who participate in University
programs and activities can work and learn together in an atmosphere free of harassment, exploitation, or intimidation. Every member of
the community should be aware that the University prohibits sexual harassment and sexual violence, and that such behavior violates both
law and University policy. The University will respond promptly and effectively to reports of sexual harassment and sexual violence, and
will take appropriate action to prevent, to correct, and when necessary, to discipline behavior that violates our policy.

All Extension students and instructors who believe they have been sexually harassed are encouraged to contact the Department of
Student and Alumni Services for complaint resolution: UCLA Extension, Suite 113, 10995 Le Conte Ave., Westwood; Voice/TTY: (310) 825-
7031. View the University’s full Policy on Sexual Harassment and Sexual Violence at http://policy.ucop.edu/doc/4000385/SHSV
(http://policy.ucop.edu/doc/4000385/SHSV).


Additional Items

About Your Online Course Materials

Please note the following about online course components at UCLA Extension:

Students must have basic computer skills, including the use of word processing software, email, and the ability to use internet
browsers, such as Safari, Firefox, or Chrome.
Students are responsible for meeting the technical requirements of Canvas and familiarizing themselves with the Canvas Learning
Management System.
What are the basic computer specifications for Canvas? https://guides.instructure.com/m/4214/l/82542-what-are-the-basic-
computer-specifications-for-canvas (https://guides.instructure.com/m/4214/l/82542-what-are-the-basic-computer-
specifications-for-canvas)
Which browsers does Canvas support? https://guides.instructure.com/m/67952/l/720329-which-browsers-does-canvas-support
(https://guides.instructure.com/m/67952/l/720329-which-browsers-does-canvas-support)
Students are responsible for keeping a copy of all assignments and work submitted, and to be aware of all assignments, due dates,
and course guidelines.
Students are encouraged to keep and/or download a local copy of their assignment files, as access to the online environment of a
specific course is limited to 30 days after the final course date, as listed in the course catalog.

If you need assistance downloading student materials from your course, please contact Canvas Support or the UCLA Extension
Learning Support Team.

UCLA Extension Canvas and Learning Support

For immediate 24/7 Canvas technical support, including holidays, click on Help (located on the menu to the left) where you can call or
chat live with a Canvas Support representative.

UCLA Extension Instructional Design and Learning Support

The UCLA Extension Learning Support staff assists both students and instructors with Canvas-related technical support, as well as
general and administrative questions.

Learning Support staff is available Monday through Friday, from 8 AM to 5 PM (Pacific Time), except holidays:

Email: support@unexonline.zendesk.com
Website: http://support.uclaextension.edu (http://support.uclaextension.edu/)


Schedule
This page organizes your course by weeks & textbook chapters:   In addition to the required readings from the textbook, you’ll be expected to
perform additional research and inquiry on the web, as needed, for various assignments/DQs.

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This online course has each week starting on Wednesday, and all weekly assignments are due by midnight Tuesday.  It is important to stay on
schedule as subsequent topics build on previous lessons. 

When Module Title Notes

Week Introduction to Learning objectives;

One
Internal Auditing
(Chapter 1 of Obtain a basic understanding of internal auditing and the internal audit process
textbook) Become familiar with the internal audit profession and Institute of Internal Auditors
Distinguish between internal auditing and external auditing services

Readings:   (Textbook: Internal Auditing-Assurance & Consulting Services by K. Reding)

Introduction to Internal Auditing  (Chapter 1)

The relationship between a company’s Audit Committee & Internal Audit:  (Audit Committees & Internal Audit.doc)

References/Resources:

Institute of Internal Auditors website: theiia.org

Major accounting firms sites: ey.com, www.kpmg.com, www.deloitte.com, www.pwc.com

W1DQ1 - Post your Biography & Follow-up (5 points)

Please post a bio to this discussion forum that includes information about your work background, education, and what you hope
to get out of this course (certificate requirement, personal development, etc.).  Include your experience with internal auditing ,
online learning and any impressions on what “internal control” is all about.   Please include something about your personal
interests, your email address and a photo so we can envision you as we work together. 

Please reply to at least one other classmate regarding a point of interest from their bio.  It could be in response to similar work
history, common experience or other connections.  The response should help stimulate the building of a network by sharing
experiences and information with each other 

W1DQ2 – External and Internal Auditing  (10 Points)

Both internal audit and external audit provides assurance and consulting services to its clients.  Although they have many
similarities, they also have several differences.  Provide your comments on the similarities and differences between the two
auditing professions   Make sure to critique at least one other student’s posting in addition to your own.  

W1DQ3 –State of the  Internal Auditing profession (10 points)

Search the web for information on the state of the internal auditing profession in today’s environment.  (Please cite the source
and date of your information).   Discuss how the current financial crisis, recession and/or recent legislation has impacted the
following:  1). Internal Audit’s role & status within an organization, 2) Its relationship with the external auditors, 3) Importance of
the Certified Internal Auditor (CIA) designation, and 4) other trends related to the internal auditing profession.    Make sure to
critique at least one other student’s posting. 

W1A1 – Institute of Internal Auditors (5 points)

Tour the Institute of Internal Auditors (www.theiia.org) which is the leading voice for the internal audit profession by setting
standards for its practice and resources for professional development and certification.  Post your comments on at least one
feature/topic within the site to share with your classmates how the specific feature might help them with this course or their
career.   When you post your reply to this assignment, please include the specific feature/topic in the Subject Line of your
response.

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When Module Title Notes

Week Professional Learning objectives:

Two
Standards &
Ethics (Chapter Become familiar with the profession’s ethics, standards and guidance materials.
2); Governance & Define governance, risk & enterprise risk management (ERM) concepts
Risk Management
Readings:  
(Chapter 3 & 4)
Professional Practices Framework (IPPF) (Chapter 2)
Governance (Chapter 3)
Risk Management (Chapter 4)

Resources/References:

http://www.theiia.org/guidance/standards-and-guidance/ippf/standards/

W2DQ1-Risk Management (10 points)

A. Refer to the relevant “everyday questions” outlined in the chapter that can be used to apply risk management thinking.   Think
about some of the common business processes or any process of your choice.  Select a fairly narrow activity or process (payroll,
accounts payable, estimating reserves, planning a party, losing xx pounds) and answer the following questions: 

What are you trying to accomplish (i.e. what are the objectives of your selected process? Be as specific and measureable as
possible. 
What could stop you from accomplishing it? (i.e. relevant risks)
What can you do to make sure those things don’t happen? (i.e. control activities).

B. Discuss whether you think it’s riskier for a child of age 10 to go to a classmate’s birthday party at 1) A house where the parent’s
own a gun OR 2) A house where’s there’s a swimming pool. Please include your reasoning or justification for your conclusion..

Make sure to critique at least one other student’s posting, particularly on their identified risk as to likelihood and impact, in
addition to your own.  Please include the name of your process in the Subject Line of your posting. 

W2DQ2-Enterprise Risk Management (ERM)  (10 points)

Now that you have had a chance to read about the ERM framework, go to secfilings.com to read about how a public company
discusses its business risks.   Select a company to review, and go to the form, 10-K   and read, in particular item 1 (Business
risks), item 7 (Management's discussions & analysis of…) and item 9A (Controls & Procedures)  in its most recent 10-K
filing.    Please provide your comments to the following:

1. Company name and a brief summary of its business and related risks
2. Regarding “ management’s discussion & analysis of …”  and "controls & procedures” (item 7 & 9A), do you think management
covers the ERM framework in its entirety or just certain aspects of the framework? Why is that so?
3. Does your selected company described the roles & responsibilities for risk, including but not limited to: Board of Directors,
Risk Officer, Senior Executives, etc. If so, please include a brief summary.
4.   Provide your thoughts on the roles & responsibilities that the IA function may play in this company as it relates to risk
management.    

 Make sure to critique at least one other student’s posting in addition to your own.   

W2A1- IIA’s Professional Practices Framework (5 points)

The specifics of the professional standards can be found at the following site:

http://www.theiia.org/guidance/.  For this assignment, provide the following:  1.  Choose one of the standard from either the
“Attribute” or “Performance” section and discuss whether you believe this standard is easy to comply with by practicing internal
auditors? And why or why not?  Please include the name of the standard on the Subject Line of your post.)      2.  What are the top
3 reasons that the internal audit function should follow the IPPF standards? 

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When Module Title Notes

Week Business Process Learning objectives:

Three
& Business Risks
(Chapter 5) Understand how a business structure its activities to achieve their objectives
Understand approaches to documenting business processes and related risks
Become familiar with a process/risk matrix model approach

Readings:

Business Processes & Risks

W3DQ1-Business Processes, ICFR & IA's Role (10 points)

1. Name at least four of the most important "core" business processes and related business risks for a large automotive
company.

2. The Sarbanes Oxley Act requires public companies to identify, document and assess their internal controls over financial
reporting (ICFR). Discuss how a company would determine what processes and related activities are part of this legal
requirement.

3. Discuss the role(s) that an IA department could have in complying with SOX.

Make sure to critique at least one other student’s posting in addition to your own. 

W3A1-Risk/Control Matrix (15 points)

Develop a risk and control matrix,  using the attached Word document file (included in Module-Week 3),  for the following
assignment: 

       A “company night” is to be sponsored by a school’s internal audit student club. The event is designed to provide internal audit
functions in companies, government agencies, and service providers the opportunity to interact with college students to increase
the students’ awareness of the opportunities in the internal auditing profession. Food and beverage (including beer and wine) will
be a part of the event. The event will be held in a rented party facility in a park adjacent to campus. The plan is that the expenses
related to the event will be covered by a sponsorship fee charged to the attending internal audit functions

W3A2- Multiple Choice Questions (5 points)

In the Quiz section of the course menu, go to Week 3 Quiz.  This assignment is to assess your understanding of some of the key
concepts for business processes and risks.  You will have only 1 attempt but there is not time limit on the quiz.  Good luck. 

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When Module Title Notes

Week Internal Control Learning objectives:

Four
(Chapter 6)
Understand what is meant by internal control
Identify the components of an effective internal control framework
Know the roles & responsibilities for internal control in an organization
Understand the process for evaluating the system of internal controls

Readings:

Internal Control

Lecture:

A PowerPoint presentation on internal controls:  Internal Control Slides.ppt 

Resources/References:

Visit other sources of recognized control frameworks and models:

Committee of Sponsoring Organizations (COSO):  www.coso.org

Canadian Chartered Accountants (CoCo):  www.cica.ca

 W4DQ1-Internal control myths (10 points)

Listed below are statements about internal control.  Please discuss why you believe each statement is a myth, fact, or
somewhere in between, and your reasoning and basis: 

1. Internal control starts with a strong set of policies & procedures.

2. Everyone within an organization has some internal control responsibilities.   

3. With downsizing & empowerment, we have to give up certain amount of control.
4. Companies without internal auditors will not have effective internal controls.
5. If internal controls are strong enough, we can be sure there will be no fraud.

Make sure to critique at least one other student’s posting in addition to your own.

W4A1-Internal control framework (10 points)

Post your comments to the following questions:

1. What is the connection between the Sarbanes Oxley Act and an internal control framework?
2. The COSO framework identifies “a commitment to ethics & integrity” as an important attribute of a company’s control
environment (i.e. company culture). Please list at least 4 activities (I’m not looking for definitons of ethics/integrity, but
specific  company’s PRACTICES, PROCEDURES, OR ACTIONS) that demonstrate that an organization has a highly effective
“ethical culture”.    

W4DQ2- Governance, risks  & controls (5 points)

Let’s discuss some of the concepts from the textbook as it applies to the  slew of bankrupt and failed companies during this
recent financial crisis.   

1. Do you believe the main cause for a company’s failure is due to “risk assessment” and “risk appetite” practices OR is it
primarily due to the state of the economy?
2. Discuss the governance practices at these companies.  Make sure you've include the BoD's role and its objectivity and/or
independence from management.
3. Discuss whether you think companies could have effective internal controls over financial reporting (i.e. SOX 404
compliant), yet still have major weaknesses in its overall system of internal controls.

Make sure to critique at least one other student’s posting in addition to your own.

W4A2-Multiple Choice Questions (5 points)

In the Quiz section of the course menu, go to Week 4 Quiz.  This assignment is to assess your understanding of some of the key
concepts on internal control.

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When Module Title Notes

Week Reflection/Open Learning objectives:

Five
Discussions &
Assignment To re-enforce, challenge or question concepts learned to date
Apply you understanding of a risk-based process approach to auditing

W5DQ1-Reflections & Open Discussions (5 points)

1.  Reflect on the key concepts within Governance, Risk Management, Controls and Interanl Auditing, and provide your
thoughts on which one topic was important, surprising and/or intriguing to you personally. Please expand on your reasoning
on why you pick this topic, and how it may affect your future, if at all.
2.  It's been said that "internal controls" in a company are like the brakes in a car.  Do you agree with this statement?  Please
provide your reasoning and arguments on why this is a good or poor analogy. 

Make sure to critique at least one other student's posting in addition to your own.

W5A1 -  Audit Assignment  (15 points)

The attached assignment (see file in Week 5 Module) is a good exercise to review your understanding of a risk-based, process
approach to evaluating internal controls.   

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When Module Title Notes

Week IT Risk Learning objectives:

Six
Management
(Chapter 7); Fraud Become familiar with some fundamental IT concepts, risks and IT controls
Risks & Controls Obtain a basic understanding of fraud risk and controls
(Chapter 8) Become aware of fraud prevention, deterrence and detection programs
Understand professional skepticism, professional judgment, and use of forensic technology

Readings

Information Technology Risk Managemnt

Fraud
CoBiT Executive Summary (optional)

W6DQ1-IT Risks & Controls (10 points)

All auditors and most accountants should have a solid understanding of IT systems, including hardware, communication
networks, software, databases and other infrastructure elements, in order to assess basic IT risks and controls.

Generally, IT controls can be grouped into 2 major areas; “IT general controls” and “application controls”. Application (such as
Accounts Receivable, Accounts Payable, Payroll, Inventory, etc) controls can be further broken down into 3 major areas: input,
processing and output controls.  IT general controls are controls activities performed within the IT organization or the technology
that IT supports in order for the applications to function. This grouping concept is similar to the “entity-wide” vs “process-level”
controls discussed in prior weeks.

For this DQ, we’ll cover both IT General Controls and Application Controls, as follows:

1. The lack of availability to an organization’s IT system can have significant impact; thus, organizations typically have an IT
Disaster Recovery plan (IT general control) for such situations.   Search the web for a situation where a company has had such
an “IT disaster” and discuss the following:

a.  General description of the IT disaster, including scope of the problem, impact to its operations and corrective actions.  

b.  What do you think are the key obstacle(s) or challenge(s) for a company to have an effective IT Disaster Recovery Plan?

 2.  Choose at least two (2) other major or significant IT risks to discuss, including the following elements:

a.  Specific nature of the IT risk , whether it’s an application or general IT control and a discussion of its likelihood and
significance of the risk.

b.  Is this IT risk more a technical or human issue or both? Please provide your reasoning.

c.  Discuss whether your think future technological advances will enhance or reduce this risk.

d.  Discuss the type of control(s) that could/should be implemented to mitigate such risk.

 Make sure you critique or respond to another classmate’s post.

W6DQ2-Fraud Situations  (10 points)

1. Search the internet to gain a deeper understanding of a recent and major case of “fraud” within an organization (there have
many, including Enron, WorldCom, Tyco, Healthsouth, etc, or you could find your own). Describe the circumstances that
surrounded the fraud, including but not limited to: 
2. Who was involved, financial impact and consequences.
3. Detail nature of how it was perpetrated (i.e. control breakdown, mgmt override, collusion)
4. Were the control breakdowns of “entity-level controls” and/or “process-level controls”?  Please support your argument. 
5. What role, in any, the internal auditors and external auditors played
6. Discuss whether you believe that only a small portion of the frauds that occur within a company are ever discovered. Back
up your reasoning with facts, examples or other arguments.  Make sure to critique at least one other student’s posting in
addition to your own.

W6A1-Multiplec Choice Questions (5 points)

In the Quiz section of the course menu, go to Week 6 Quiz.  This assignment is to assess your understanding of some of the key
concepts for fraud issues.

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When Module Title Notes

Week Audit Evidence, Learning objectives:

Seven
Workpapers &
Audit Sampling Understand key activities is planning, performing and reporting on the results of an audit
(Chapter 10 & 11) Become familiar with how an auditor gathers audit evidence
Understand the importance of a well-prepared audit working papers
Become familiar with statistical and nonstatistical sampling in audit testing

Readings:

Audit Evidence & Workpapers

Audit Sampling & Data Analytics

W7DQ1- Audit Testing  (5 point)

A.  Manual Audit Test Procedures

Select one of the manual audit test procedures listed in the textbook and discuss how such a procedure would be used in an
audit of a Payroll or Accounts Payable process.  What results or conclusions, if any, can you arrive at, if you have found no
exceptions or errors.  

B.  Design & Operating Effectiveness

1  For audits of a business process;

a)  Which of the following should be performed first:  test of  operating effectiveness (TOE) or test of design adequacy (TOD)?
 Please provide your reasoning.  

b)  If you find exceptions or errors in either TOE or TOD, what should steps should the auditor take?

2.  Is evaluating control design more challenging than evaluating operating effectiveness?  Include your arguments for your
position.

Make sure to critique at least one other student’s posting in addition to your own.

W7A1-Sampling risks & Data Analytics  (5 points)

A.  Provide your answers to the following questions regarding sampling

1. List the steps involved in attribute sampling.

2. What is meant by "sampling risks" and what is its impact on audit findings? 
3. Identify and define the factors that affect the size of an attribute sample.
4. Explain how the purpose of statistical sampling in tests of monetary values differ from the purpose of statistical sampling in
tests of control activities.  

B.  Discuss a situation within Payroll or Accounts Payable where data analytics could be used by an Internal Auditor. Briefly
describe the information to be analyzed and what potential results would be expected? (i.e. How would the population of data be
defined? What controls is being tested? What additional testing beyond data analytics, if any, would be required to reach an audit
conclusion?

W7A2-Multiple Choice Questions (10 points)

In the Quiz section of the course menu, go to Week 7 Quiz.  This assignment is to assess your understanding of some of the key
concepts for gathering audit evidence.

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When Module Title Notes

Week Conducting Learning objectives:

Eight
Assurance
Engagements Determine engagement purpose, objectives and scope
(Chapter 12 &13) Understand how a process-level risk assessment is performed
Describe how to evaluate design adequacy and how to design different types of testing approaches
Conduct & document certain types of tests to gather evidence 

Readings:

Introduction to the Engagement Process

Conducting the Assurance Engagement

W8A1-Audit Assignment: Payroll Audit (25 points)

Attached is a case study on performing an assurance engagement of a payroll process. Please provide your answers directly on
the attached file. (Payroll Audit.doc). Also, included is an Excel worksheet (both files located in Module Week 8) where you will
complete the Risk & Control Matrix.

W8A2-Multiple Choice Questions (10 points)

In the Quiz section of the course menu, go to Week 8 Quiz.  This assignment is to assess your understanding of some of the key
concepts for assurance engagements

W8DQ1—Audit Coverage & Design Adequacy (5 points)

Answer the following concerns when performing an assurance engagement:

1. What are the consequences of identifying too many or too few key process-level risks

in performing an assurance audit?

2. What are some of the considerations when evaluating the design adequacy of

controls for a business process?

(There is no need to comment on other posts for this particular DQ).

Week Communicating Learning objectives:

Nine
Audit Results &
Follow-up Identify the different forms of and steps involved in creating effective communications within an engagement
(Chapter 14) Understand what is involved in effective monitoring of and follow-up on audit results

Readings:

Communicate Assurance Engagements Outcomes

W9DQ1-Audit Criteria & Audit Conclusions (5 points)

1.  All audits have four basic elements: Client, auditee(s), auditor, and the criteria to be used in the audit.  What should an internal
auditor do if there are no clearly established or documented criteria for an activity, process or function that’s to be audited?  

2.  Audit conclusions:  Typically, an internal audit report will have specific, detailed audit findings for exceptions, errors, design
gaps or other issues found during testing.  Besides those specific findings, should an audit report have an overall conclusion,
such as pass/fail, acceptable/needs improvement/unacceptable or other summary opinion?  Please discuss your reasoning.  

Make  sure to critique at least one other student’s posting in addition to your own.

W9A1-Comommunicating Results Assignment (10 points)

See attached file for an exercise on communicating audit results for an engagement.  This assignment covers many concpets
covered in previous chapters & lessons

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When Module Title Notes

Week Consulting Learning objectives;

Ten
Engagements
(Chapter 15); Awareness of the different types of consulting activities and services provided by internal auditors
FINAL EXAM Understand the benefits to an organization when internal auditors acts as an agent of change for risk management
To reflect on what you’re learned to-date and where you believe the internal audit profession is headed

Readings:

Consulting Engagements

W10DQ1-Course Reflections; Internal auditing  (5 points)

1. We have covered a lot of topics on the fundamentals of internal auditing over the past 10 weeks.  This is good time to reflect
on your original objectives for taking this course and whether you have successfully achieved them.  To sustain continuous
learning, reflect on a subject matter or topic covered in this course that you want to delve into more depth and/or breadth. 
Please describe the topic(s) and discuss what steps your plan to take to gain a deeper understanding or perspective.  
Please include the topic in the Subject Line of your posting.  
2. Just recently, the SEC updated its NYSE listing standards so that  “listed companies must maintain an internal audit function
to provide management and the audit committee with ongoing assessments of the company’s risk management processes
and system of internal control.” .  Do you believe this will increase the demand for internal auditing in private companies or
non-NYSE public companies?  Please provide your arguments on why you think it will or won’t.  Make sure to critique at least
one other student’s posting in addition to your own.

FINAL EXAM  (60 points)

The final exam is comprised of 28 multiple choice and 4 T/F questions, for a total of 60 points.  The final will be available one
week prior to the due date which allows for plenty of time to prepare for the exam.  The final will be comprehensive and cover
materials from the discussions, assignments and readings.  You will have only 1 attempt on this exam but there is not time limit. 
  The final exam is due at 11:59 PM Tuesday night.      Good luck. 

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