Assessing Risk - Ensuring Internal Audit's Value

Assessing Risk: Ensuring Internal Audit’s
Value
Risk assessments in their various forms (e.g., annual audit planning,
engagement planning, enterprise risk management, etc.) are a key
building block for numerous internal audit activities, deliverables, and
communications such as periodic audit planning schedules, audit
engagement planning memos, audit reports, ERM activities, and audit
committee reports. However, many internal auditors and internal audit
functions struggle to find the right risk assessment framework that
balances stakeholder needs and resources available for this time-
intensive activity. Likewise, many internal auditors struggle with execution
of risk assessment activities such as establishing practical and consistent
measurement criteria for rating and ranking risks as well as keeping a
keen focus on the risks that are most important to their stakeholders. Risk
assessment is at the forefront of ensuring internal audit’s value to its
stakeholders. Without effective risk assessment activities, an internal
audit function has little assurance that it is deploying its resources in a
way that fulfills its mission within the organization.
This course provides practical insights relating to contemporary best

practices of risk assessment activities and allows participants to apply
what they have learned so that they can implement risk assessment
activities at their organization. This interactive and engaging two-day
course takes a deep dive into the fundamentals of risk assessment;
nuances such as audit universe, risk appetite, and fraud; and the
challenges of implementation. It also addresses skill gaps many internal
auditors struggle with such as how to develop their own risk assessment
frameworks and how to select or construct a risk ranking system. After
reviewing real examples of risk assessment models used by leading
internal audit functions, participants will have the opportunity to develop
their own risk assessment frameworks by picking and choosing those
elements and best practices that best meet the risk assessment needs of
their organization, no matter the size or maturity level of their internal
audit function.
Course Duration:
2 Days
CPE Hours Available:
16
Knowledge Level:
Advanced
Field of Study:
Auditing
Prerequisites:
Participants should have knowledge of common risk management

frameworks (such as COSO, CoCo, or Cadbury) and at least two years’
experience in internal auditing.
Advance Preparation:
None
Delivery Format:
Seminar, Online Virtual, On-site

Course Outline:
Nature of Risk
 Explain the fundamental nature of risk.

 Recognize patterns of change in an organization.
 List potential changes that could impact organizational
opportunities and threats.
 Recognize types and categories of risk.
 Explain the strategic influences on risk assessment.
Risk Assessment Essentials
 Identify the essential building blocks of a risk assessment.

 Clarify internal audit’s role in risk management and risk
assessment with its key stakeholders.
 Contrast various control framework risk assessment criteria.
 Utilize a common vocabulary for discussing risk assessment
activities.
 List the common risk assessment activities in which internal audit
functions have engaged historically.
Contemporary Risk Assessment Trends
 Discuss contemporary trends relating to risk concerns of internal

audit stakeholders.
 Trace the history of events and regulatory influences on
stakeholder perceptions and expectations concerning the role of
the internal audit function.
 Describe the diversity of stakeholder needs for partnership in risk
assessment activities (past and present).
 Recognize how legislation and regulatory activity have created
opportunities for internal audit to engage differently with
stakeholders (in regard to risk assessment activities).
 Identify your organization’s risk-centric management maturity level.
 Assess how your organization’s risk management maturity level
will impact your internal audit risk assessment approach.
 Identify internal audit trends in regard to the risk focus continuum.
 Discuss the results from The IIA Research Foundations’ 2010
Common Body of Knowledge (2010) that relate to risk
management and risk assessment.
The Audit Universe
 Assess the completeness of the audit universe.

 Identify auditable units to include in the audit universe.
 Create an audit universe.
 Validate the completeness of the audit universe.
Audit Universe Risk Assessment
 Develop a risk assessment methodology for assessing the audit

universe.
 Identify the objectives of the audit universe risk assessment.
 Analyze examples of audit universe risk assessment
methodologies.
 Determine the factors that influence the level of sophistication
needed for the risk assessment methodology.
 Outline the audit universe risk assessment activities.
 Examine techniques for risk identification and measurement.
 Choose a method for prioritizing risk assessment results.
 Discuss communication of risk assessment results with various
stakeholders.
Engagement Risk Assessment
 Develop a risk assessment framework for engagement planning.

 Identify the objectives of the engagement risk assessment.
 Analyze examples of engagement risk assessment methodologies.
 Determine the factors that influence the level of sophistication
needed for the risk assessment methodology.
 Outline the engagement risk assessment activities.
 Examine techniques for risk identification and measurement.
 Choose a method for prioritizing risk assessment results.
 Discuss communication of risk assessment results with various
stakeholders.
Fraud Risk Assessment
 Perform a fraud risk assessment.

 Identify the objectives of the fraud risk assessment.
 Identify potential fraud schemes.
 Prioritize potential fraud schemes base don risk.
 Discuss communication of risk assessment results to various
stakeholders.
Risk Appetite
 Integrate risk appetite into the risk assessment framework.

 Define risk appetite.
 Contrast various risk appetite and risk tolerance viewpoints.
Risk Assessment Implementation Challenges
 Minimize risk assessment implementation issues.

 Contrast the advantages and disadvantages of various risk
assessment models.
 Identify solutions to common implementation issues.
Course Closing
 Apply newly learned concepts, techniques, and skills to the work

place.
 Restate major concepts, techniques, and skills learned during the
course.
 Develop an action plan to apply select concepts, techniques, and
skills.
 Identify additional resources to help stay current on issues related
to assessing risk.

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Assessing Risk: Ensuring Internal Audit’s

This course provides practical insights relating to contemporary best

CPE Hours Available:

Participants should have knowledge of common risk management

Seminar, Online Virtual, On-site

 Explain the fundamental nature of risk.

Risk Assessment Essentials

 Identify the essential building blocks of a risk assessment.

Contemporary Risk Assessment Trends

 Discuss contemporary trends relating to risk concerns of internal

 Assess the completeness of the audit universe.

Audit Universe Risk Assessment

 Develop a risk assessment methodology for assessing the audit

Engagement Risk Assessment

 Develop a risk assessment framework for engagement planning.

Fraud Risk Assessment

 Perform a fraud risk assessment.

 Integrate risk appetite into the risk assessment framework.

Risk Assessment Implementation Challenges

 Minimize risk assessment implementation issues.

 Apply newly learned concepts, techniques, and skills to the work

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