Business Process Design and Internal Audit UNIVERSITY OF TEXAS AT DALLAS Course Syllabus Spring 2005 Instructor: Mark Salamasick, CIA, CISA, CSP Course Number: AIM 6380 Semester Hours: 3 Location: SOM 2.801 Time: Office Phone: (972) 883-4729 Thursday, 4:00-6:45 p.m. Email Address: Endorsed Internal Audit Program: UTD IIA Students Chapter: Homepage URL: Office Hours: Mark.Salamasick@utdallas.edu http://som.utdallas.edu/eiap http://www.utdallas.edu/iia http://www.utdallas.edu/~msalam Wednesday and Thursdays, but call ahead. Also by appointment. Course Overview: The course will cover internal audit from a broad perspective that includes information technology, business processes, and accounting systems. Topics include internal auditing standards, risk assessment, governance, ethics, audit techniques, and emerging issues. The course covers the design of business processes and the implementation of key control concepts and will use a case study approach that addresses tactical, strategic, systems, and operational areas. Improvement in effectiveness and efficiency will be covered in the areas of operations, finance and technology. The course is open to all majors with an interest in the design and testing of controls for improving management processes. This is the first course leading to Endorsed Internal Audit Certificate and will prepare students to sit for the Certified Internal Auditor Exam. Prerequisites: - The prerequisite for the class is that you have an undergraduate degree or be in the last 15 hours of the degree program. - The other prerequisite for the class is that you have a strong desire to learn about Internal Audit. You should also have a strong interest in completing a twelve credit hour program in Internal Audit and passing the Certified Internal Auditor exam.
Business Process Design and Internal Audit 2 Required Materials: The Goal, A Process of Ongoing Improvement, Second Revised Edition, Eliyahu M. Goldratt and Jeff Cox, 1992. You can obtain from Half Price books, online or many other sources. CIA Model Exam Questions 2004 from the IIA International. Cost is $25 for IIA members, you need to also join as a student member see below. CIA Review Materials, Gleim (Parts 1 and 2 required for the course, but exam is 4 Parts). 11 th Edition is the current Edition. The material is available from the bookstores or directly from the IIA and can be ordered at www.theiia.org. The CIA exam has undergone extensive changes and the 10 th edition will not be current! Access to the Protiviti website. You will be provided an ID and password to this site. Student Membership in IIA International which is available for $30. See www.theiia.org. This will give you membership to the IIA for one year with subscription to the magazine. You should also join the UTD student IIA chapter which will make you eligible to interview for internships, full time positions, resume book, company visits, golf outing and much more. Course Objectives: Understand the different roles of the internal auditor. Current understanding of internal audit standards, guidelines, and emerging issues such as COSO and Sarbanes Oxley. Develop knowledge of Internal Audit and assurance services terms and procedures, including an awareness of advanced internal auditing information processing concepts. Develop knowledge of business design practices and internal control frameworks including COSO. Become familiar with sources for Internal Audit Preparation for the Certified Internal Auditor Exam. Utilize the Internet as a research and communication tool for internal audit. Network with Internal Auditors in the DFW area. Learn the controls and key questions to ask concerning the control techniques and the business process. Learn the concepts of efficient and effectively controlled environments. Also, be able to explain why these controls are necessary and if there are any compensating controls explain why the controls may not be necessary. Be able to adapt an audit checklist and audit program to various internal audit environments. Develop skills necessary to be able to perform an internal audit and prepare an internal audit report. Be able to describe some of the common features of audit software and be able to describe scenarios where to integrate into the audit practice. Learn those areas of business risk and well-designed internal control systems.. 2
Business Process Design and Internal Audit 3 Understand how to adapt audit coverage in various industries and emerging audit issues. 3
Business Process Design and Internal Audit 4 Homework: All assignments should be completed and turned in on time. A number of assignments will require you to prepare the assignment in PowerPoint and make a short presentation in class. Most of these assignments will be due the Wednesday before class and should be posted to WebCT. Attendance: Notify the instructor in advance, if possible, if you cannot attend class. Class attendance is extremely important since many of the topics and guest speakers are unique to the class discussion. We will also be working on class projects involving actual audits with the UTD Audit Department which will require meetings at other times. Communication: We will make use of WebCT for posting assignments and Case Study material. Also, discussion in class is the best way to learn as many of you bring varied backgrounds that can add different views to the class. Handouts: Tests: The course will have numerous handouts and case studies that will be used to stimulate class discussion. It is your responsibility to obtain all handouts if class periods are missed. Numerous presentations will be used to compliment the course with current material. These will be given throughout the semester to test your preparedness for the actual CIA exam. Students will be expected to study and learn the exam material outside of class and be prepared with any questions during the class. Saturday review sessions for the CIA exam will be established if desired by students. 4
Business Process Design and Internal Audit 5 Grading: Your grade will consist of the following: Percent 2 CIA Review Exams 25% Case Studies 25% Class Audit Project 25% Class Assignments and Class Participation 25% Total Points 100% Class Portal and Current Topics: A number of websites will be valuable resources during the course of the semester. All students will have free access to the subscription service of the Protiviti KnowLeader site. We are one of only few classes in the country to have this access and you need to take advantage of the resource during the class. This will allow us to be very current on our topical coverage along with indexed links to numerous other sources. You will have an id and password that is issued for use during this class. Current topics from the site will be discussed during the class. You will also receive a twice a month newsletter from Protiviti of current audit events. You are expected to followup and read accordingly for discussion in class. Dallas Chapter of the Institute of Internal Auditors The local IIA Chapter has monthly meetings. Three meetings are held during the spring semester and you are strongly encouraged to attend. The dates are set at January 13, February 8, March 3, April 7 and May 5 th. The meetings on January 13 and May 5 should be quite good and although we don t start class until that date you would benefit by attending the luncheon. You are invited to attend the luncheon meetings from the Dallas Chapter of the IIA at a reduced rate and possibly free as long as you guarantee that you will show. These meetings offer you an opportunity to network with audit professionals, hear great speakers, and learn more what is going on in the Dallas area. The local chapter http://www.dallasiiia.org/ has more than 1,200 members and is one of the only platinum chapters in the world. In addition the Information Audit and Control Association meetings(http://www.isacantx.org/) are at reduced student rates. Meetings are typically on Thursday at lunch. This association has over 600 local members. The national IIA site is www.theiia.org and national ISACA site is www.isacantx.org. 5
Business Process Design and Internal Audit 6 IIA Student Chapter During the fall semester of 2003 a student chapter of the IIA was formed at the University. Participation in the chapter is highly recommended. We continue to need assistance with the student chapter and the chapter will be having meetings, internship opportunities, golf outings, and a resume book. An Information Session about the program is planned for the second week of class. Individuals can participate in the Student Chapter and not the class. This will be a great opportunity for those wanting to get full time employment, internships, learn more about the program, network with many companies throughout the country along with IIA International. It is important for all students to have an up to date resume and take special care to speak knowledgable about internal audit during those interviews. The student chapter will take on key projects including working with firms in building integrated automated workpaper case studies. Endorsed Internal Audit Program: This course along with other requirements will lead to a Endorsed Internal Audit Certificate from IIA International. Details of those requirements are given on the webiste citm.utdallas.edu/eiap. You must have on file an application for the program along with acceptance of the faculty advisor to be considered part of the program. This endorsement is highly recognized in the business community and the criteria for the UTD program is established to ensure a high degree of credibility. 6
Business Process Design and Internal Audit 7 Class Schedule: The class schedule is subject to change, based on the needs of the students. We will have many guest speakers for the class in addition many case studies to cover. Changes to the class will be discussed as the need arises. Schedule Week Date Topic Quiz/Case Study 1 January 13, 2005 Introduction Student Chapter Presentation Resume Review and Discussion Overview of the Audit Process and COSO Model Course Resources Overview-www.theiia.org www.protiviti.com 2 January 20, 2005 Risk Assessment Process and Audit Planning- UTD Audit Group 3 January 27, 2005 Business Process Design Discussion JC Penny-Completed Reading of The Goal 7 Assignment #1 Case Study 1 4 February 3, 2005 Internal Audit Standards Assignment #2 5 February 10, 2005 Audit Programs and Audit Workpapers Case Study 2 6 February 17, 2005 Internal Audit Skills-Types of Engagements, Communicating Results 7 February 24, 2005 Ethics Assignment #3 8 March 3, 2005 Audit Status and Test Part I Test N/A March 10, 2005 Spring Break 9 March 17, 2005 Sarbanes Oxley Presentation Case Study 3 10 March 24, 2005 Audit Software and CAATS - Integration into Case Study 4 the audit process 11 March 31, 2005 Fraud 12 April 7, 2005 Control Self Assessment and The Audit Role as Case Study 5 Consultant 13 April 14, 2005 Corporate Governance Assignment #4 14 April 21, 2005 Enterprise Risk Management
Business Process Design and Internal Audit 8 15 April 28, 2005 Class Wrap Up, Discussion Part II Test 8