Operational Audit – The Basics

Key Take Away:

Internal Audit has the responsibility to evaluate those controls through the operational auditing process to determine if they are adequate and effective.

Overview:

This class is designed to give you the basics for doing an operational audit.  We will discuss management and audit concepts to help you understand how the process works.  We will also do some exercises to further strengthen your knowledge.

Why Should You Attend:

Every organization has a primary business objective, the reason for its existence.  Whether it is a “for-profit” organization or a “not-for-profit” organization, there is always a primary business objective.  And each organization is set up to accomplish that primary business objective.  

The primary business objective is the life blood of the organization.  And management has the responsibility to set up an operational structure and processes to ensure that the primary business objective is accomplished.  However, to do that, there are so many other secondary objectives that have to be achieved.  For example, management has to establish various departments like an: 

• HR Department– to hire/train personnel
• Procurement Department – to purchase material/goods
• Accounting Department – to pay vendors and employees
• IT Department – to leverage technology 
• Maintenance Department – to care for equipment/infrastructure
• There are numerous other possible departments depending on the company and its primary business objective.  And every department has its own departmental objectives to directly or indirectly support the primary business objective.  And management has the responsibility to establish controls to ensure that these objectives are achieved.

Areas Covered In This Webinar:

• Definitions
• IIA internal audit 
• Operational audit
• The three primary types of audits
• Financial
• Compliance 
• Operational
• Management’s responsibilities
• Plan, organize, lead, and control
• Establish an organizational structure
• Establish objectives that directly or indirectly support the primary mission
• Assess the risk of not achieving the objectives
• Establish controls to ensure that the objectives are achieved
• Gain an understanding of the operational audit process which includes
• Develop an annual audit plan
• Conduct a preliminary survey of the selected area
• Determine the audit objectives
• Determine the audit scope
• Conduct an entrance conference
• Conduct the field work
• Conduct exit conference
• Communicate the Results to Management
• Follow up on audit findings
• Key IIA Standards relative to operational audits
• 2010 – Planning 
• 2201 – Planning Considerations
• 2220 – Engagement Scope
• 2240 – Engagement Work Program 
• 2300 – Performing the Engagement
• 2400 – Communicating Results 
• 2500 – Monitoring Progress

Learning Objectives:

Operational auditing plays an important role in helping management achieve its primary business objective.
Who Will Benefit:

• Audit Managers
• Staff Auditors
• Government Auditors
• Compliance Auditors
• Internal Control Specialists
• Public Accountants
• Accounting Analysts
• Business Analysts
• Quality Control Specialists

Email: [email protected] 
Toll Free: +1- 844-414-1400
Tel: +1-516-900-5509

Speakers Profile:

Jonnie Keith
Jonnie Keith has been in auditing for over 40 years. He retired in 2012 as the assistant general manager (AGM) of internal audit with the Metropolitan Atlanta Rapid Transit Authority (MARTA) in Atlanta, GA. He served in that capacity for over 10 years and was responsible for administering their overall audit activities. He was also responsible for the review and approval of all internal audit correspondence including audit reports, executive summaries, internal and external correspondence, etc.

Prior to that, he worked at MARTA as the operational audit manager and senior contract compliance auditor. He also worked at Norfolk Southern Railway (Southern Railway) as a senior operational auditor and started his career at the Federal Reserve Bank of Atlanta as a bank examiner.

Mr. Keith received a BA degree in economics from Clark Atlanta University (formerly Clark College). His certifications include: Certified Internal Auditor (CIA), Certified Fraud Examiner (CFE), Certified Government Auditing Professional (CGAP), and Certified Internal Control Auditor (CICA).

He has been a volunteer seminar instructor for the National Office of the Institute of Internal Auditors for several years and has taught numerous classes including: audit report writing, communication skills for auditors, advanced operational auditing, leadership skills for auditors, CIA review course, and more.
 

Others Details

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