Corporate Governance and the Role of Internal Audit

Corporate governance involves the allocation of authority and responsibilities, i.e. the manner in which the business and affairs of a company are governed by its board and senior management, including how they:

• set the company’s strategy and objectives
• determine the company’s risk tolerance/appetite
• operate the company’s business on a day-to-day basis
• protect the interests of investors, meet shareholder obligations, and take into account the interests of other recognized stakeholders
• align corporate activities and behaviour with the expectation that the company will operate in a safe and sound manner, with integrity and in compliance with applicable laws and regulations

Over time, the role of the internal auditor’s was expanded to evaluating and improving management activities. Such a specialist should continually monitor the financial reporting process and to find those indicators called red flags that signal the possibility of illegal acts.

Internal auditors’ activities can be summarized in the following functions:

• evaluation of operational performance
• ensuring the adequacy and effective internal control system
• reviewing financial reporting processes to ensure quality and integrity in the production of reliable financial information, relevant, useful and transparent decision making
• ensuring a responsible governance
• prevention, detection and correction of fraud, particularly in the financial statements, which may threaten the integrity and quality of reports

During the seminar participants will understand what the main elements of Corporate Governance are, and what the approach is to audit it.

Training Objectives

After completing this course, participants will be able to:

• Understand the fundamentals of Corporate Governance
• Define the main responsibilities of Corporate Governance
• Organize and schedule an audit in the Corporate Governance procedures
• Define good practices of Corporate Governance

Training Outline

• What is corporate governance?
• Definitions of Corporate Governance
• Elements of corporate governance
• Matters concerning corporate governance
• The fundamentals of corporate governance
• Structure of a Well Governed Company
• The OECD’s Corporate Governance Principles
• Principles for Enhancing Corporate Governance by The Basel Committee on Banking Supervision
• Corporate Governance Codes
• Internal Audit’s role in Corporate oversight
• Adequate Procedures and Governance
• Monitoring and Review Mechanisms
• Whistleblowing
• The IIA Corporate Governance Model
• Board Responsibilities
• Senior Management
• Operating Management
• External Auditing
• Internal Auditing’s Role in Corporate Governance
• Specific Internal Auditing Activities
• Reporting on internal control
• COSO-ERM Framework. Analysis of the eight Components
• Audit Committee roles
• Ensuring the adequacy of the internal audit function
• The 3 Lines of Defence Model
• Standard 2110, Standard 2130
• Practical approach to audit Corporate Governance
• Key Internal Auditing Questions about Corporate Governance (Organization’s objectives, Ethical Standards, Governance processes and Organizational Structures, Stakeholders expectations)
• Good practices for Corporate Governance
• Good practices for auditing Corporate Governance

Training Style

The programme is designed to deliver knowledge and enhance participants’ skills via short lectures, case-studies, practical examples, real-life simulations.

Participants will also benefit from customised feedback at the end of the programme and take away the knowledge gained to be transferred to their workplace. Most of the training’s time will be invested in analysing a real-life case study that will help participants understand how to solve problems in similar occasions.

Who Should Attend

• All officers and staff working in Internal Audit Units at all levels (inspectors, internal auditors)
• Officers working in Compliance Units
• External auditors
• Audit Committee members
• Members of the Board
• Security professionals
• Risk Management analysts
• Line Managers and generally officers that are experienced to Internal Control Systems
• Those that need to extend their knowledge and activities into Enterprise Risk Management and Corporate Governance procedures