Internal Audit's Financial Auditing

Focus & Features

Financial Statements provide a peak on the health of a business or an organization. For owners and management, these reports are helpful in arriving at decisions that would fully optimize the Company resources. Government and other regulatory agencies used it as basis for ensuring that taxes attributed to them are remitted to sustain and accelerate the Country's growth. Institutional and retail investors, stockholders, traders and brokers need it as a baseline to arriving at a sound investment decision. Employees and labor unions, on the other hand, review it to ensure that their rights on the share of the Company's resources are appropriately given to them.

With the increasing number of stakeholders using the Financial Statements, it is imperative that these reports are reliable, relevant and speaks a common language (in the form of generally accepted accounting standards). These needs have become more prevalent when recent events such as the global crisis between 2007 and early 2009, the Great Depression in the 1930s and the increasing closures of conglomerates and companies due to financial collapse and fraud reduced market confidence. Gone where the days where only the external auditors' opinion was relied upon to assure stockholders and the Board on the fairness of the Financial Statements. Recent governance frameworks and regulations have enabled the Board to likewise rely on attestations made by existing assurance providers (Internal Auditors) within the organization on the effectiveness of internal controls over financial reporting, among others.

This course is tailored to equip Internal Auditors with the skills in conducting financial audits not only through the medium of accounting and bookkeeping cycle but also through the perspective that these reports are a product of the Company's marketing, production, administrative, investment and financial activities, among others. This seminar outlines the risk-based process-focused approach in evaluating controls over financial reporting.

What You Will Learn

A. Overview

• Internal Audit's Role in Financial Reporting Risk Management
• Significance of Financial Reporting Risks in the Business/Organization
• The Concept of the Lines of Defense Model in the Financial Reporting Governance

B. Accounting Concepts and Terminologies

• Operating Cycle
• Basics of Accounting
• Accounting Principles and the Accounting Cycle
• Financial Statements Overview

C. Relationships of Processes and Accounts

• Revenue and Collection Cycle
• Expenditure Cycle
• Financing Cycle
• Investing Cycle

D. Financial Statements Assertions

E. Financial Statements

• Balance Sheet
• Income Statement
• Cash Flows Statement
• Statement of Changes in Equity
• Notes to Financial Statements

F. Audit Methodology

• Internal Audit Planning
• Risk and Control Analysis
• Audit Verification
• Reporting
• Monitoring

G. Case Studies and Group Discussions

Who Should Attend

This seminar is ideal for all auditors