Audit Rating System

Focus & Features:

The value that an internal audit activity brings to the organization largely resides in the controls evaluation and recommendations coming out from the engagements. As such, having a structured audit and engagement rating system with clear evaluation standards will enable internal audit teams to consistently assess controls across business processes and organizations. This provides for meaningful comparison and analysis of audit ratings which in turn would facilitate a better understanding of the state of controls for the whole organization.

What You Will Learn

I. Audit Rating System Overview

A. International Standards for the Professional Practice of Internal Auditing- Applicable Standards

B. Internal Audit Opinions Overview

• Macro Opinion
• Micro Opinion

C. Expressing Internal Audit Opinions

• Types of Opinions

o Positive Opinion

o Qualified Opinion

o Negative and Informal Opinion

• Reliance on the Work of Others When Supporting an Opinion
• Guidance from Regulators and Other Standard Setters
• Other Legal Considerations

II. Importance of Audit Rating System in Internal Audit Opinions

III. Need for a Formal Issue and Engagement Rating System

IV. Audit Rating System Objectives

V. Auditor Judgment in Using Audit Rating Systems

• Use of Assessment Rating as part of Organization Audit History

VI. Use of Grades in Expressing an Opinion

VII. Audit Rating System Methodology

• Materiality
• Impact

VIII.Audit Rating System Elements

• Issue Rating
• Engagement Assessment

IX.Establishment of Criteria

• Issue Rating

o Issue Identification o Issue Prioritization o Issue Condition

o Sample Issue Prioritization Classifications

• Engagement Assessment

o Overall Process Risk Evaluation Criteria

• Possible Engagement Ratings

• Establishing the Risk Evaluation Criteria

• Risk Evaluation Criteria

• Rating Scales Development

• Rating Scale Criteria

• Sample Rating Scales

X. Assessment Communication and Alignment Process

• Capturing Risk Themes in the Overall Assessment
• Establishing the Rating Decision – Making Process

• Writing the Overall Assessment
• Communicating Assessment Criteria to Engagement Clients

XI. Special Topics

• Rating Systems Across Engagement Types
• Rating Assessment Consistency

XII.Case Studies and Exercises

Who Should Attend

The seminar is ideal for audit staff, supervisors and managers as well as engagement clients who do not perform audit but hold stewardship responsibilities.