Summary
Summary of IAU300 - Semester 1
- Course
- Institution
- Book
Complete summary of semester 1 of IAU300 from Performing Internal Audit Engagements, Assurance: An Audit Perspective and Internal Auditing: An Introduction
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
1 review
By: sonjacronje92 • 10 months ago
Seller
Follow
tanyah1
Reviews received
Content preview
IAU300 – Semester 1 NotesContents
LA 1: Chapter 2 (AAAP): Governance.............................................................................. 3
1. Introduction ................................................................................................................. 3
2. History/ Development ................................................................................................. 3
3. Governance and stakeholders .................................................................................. 3
4. Governance and theories .......................................................................................... 3
5. Defining governance .................................................................................................. 4
6. Approaches ................................................................................................................. 4
7. GOVERNANCE Structures ........................................................................................... 5
8. Role of assurance ........................................................................................................ 6
9. Three lines of defence model .................................................................................... 7
10. Combined Assurance ............................................................................................... 9
11. Information technology governance ...................................................................... 9
12. Sarbanes-Oxley Act of 2002 ..................................................................................... 9
LA 2: Chapter (PIAE): IT Controls ...................................................................................... 11
4. Application controls .................................................................................................. 15
5. Master files ................................................................................................................. 18
6. Specific computer environments............................................................................. 18
7. ICT Governance ........................................................................................................ 19
LA 3.1: Chapter 3 + 4 (PIAE): Risk Based Auditing .......................................................... 20
1. Definitions ................................................................................................................... 20
2. Roles/ Responsibilities ................................................................................................ 20
3. Approach .................................................................................................................. 20
4. Example ..................................................................................................................... 21
LA 3.2: Chapter 9 (AAAP): Sustainability ......................................................................... 22
1. introduction ............................................................................................................... 22
2. Sustainable development ........................................................................................ 22
3. Sustainability report – Key performance areas ....................................................... 22
4. ESG Reporting ............................................................................................................ 22
5. Integrated reporting ................................................................................................. 23
6. Sustainability reporting .............................................................................................. 23
7. environment .............................................................................................................. 24
8. environmental audit ................................................................................................. 25
9. types of environmental audit engagements .......................................................... 26
LA 3.3: Chapter 3+4 (PIAE): Financial Audit .................................................................... 26
1
, 1. Introduction ............................................................................................................... 27
2. revenue/ receipts ...................................................................................................... 27
3. purchases/ payments ............................................................................................... 29
LA 3.4: Chapter 6 (AAAP): Forensic Auditing ................................................................. 31
1. Introduction ............................................................................................................... 31
2. Fraud vs Corruption ................................................................................................... 31
2. Management’s role/ responsibility .......................................................................... 32
3. Considerations for assurance providers .................................................................. 32
4. Fraud risk management – Deterrence cycle .......................................................... 33
LA 3.5: Chapter 3 (AAAP): Performance audit .............................................................. 34
1. Introduction ............................................................................................................... 34
2. Operational audit ..................................................................................................... 34
3. Criteria ........................................................................................................................ 35
4. Internal vs Performance auditing............................................................................. 35
5. Advantages vs Disadvantages ................................................................................ 36
6. Analyses ..................................................................................................................... 36
7. Management actions ............................................................................................... 36
8. Process ....................................................................................................................... 37
2
,LA 1: Chapter 2 (AAAP): Governance
1. INTRODUCTION
From 1980s → Increased need for effective governance
Factors → Corporate failure/ mismanagement
contributing → Consideration for all stakeholders
to need → Consideration for investors
→ Need to restore investors’ confidence
2. HISTORY/ DEVELOPMENT
Derived from → Gubernare: to steer
→ Directing/ controlling to get to desired place
Governing → Responsible to direct/ control entity/ country
body → Board of Directors/ parliaments/ councils
Development → Mismanagement/ intentional fraud still occurs
→ Governance continues to evolve in response
3. GOVERNANCE AND STAKEHOLDERS
Definition → Anyone involved/ has interest in organization
Inclusive → Recognizing responsibility to all stakeholders
approach
Exclusive → Recognizing responsibility towards shareholders
approach
Examples 1. Shareholders/ Investors
2. Board of Directors
3. Management
4. Assurance providers
5. Employees
6. Customers
7. Lenders
8. Suppliers
9. Government
10. Society/ Local communities
Conflict → Shareholders: highest return on investment
→ Management: good performance
→ Employees: higher salaries/ wages
→ Suppliers: charge highest price
→ Customers: pay lowest price
Effective → Balancing of conflicts in effective/ ethical manner
governance
4. GOVERNANCE AND THEORIES
Theory → Possible explanation for experiences/ events
Agency → Goals of principle and agent in conflict (own agendas)
→ Principles: Shareholders
→ Agents: Managers
→ Exclusive
3
, Stakeholder → Interests of more parties need to be considered
→ Inclusive
5. DEFINING GOVERNANCE
Definition → Exercise of ethical/ effective leadership by governing body
to achieve
− Ethical culture
− Good performance
− Effective control
− Legitimacy
Characteristics → Process that consists of balances/ checks
→ Includes financial aspects
→ Unique structure to each organization
→ Lead by directing rather than controlling
→ BoD/ management should drive these processes/ systems
→ Governing body’s responsibility
− Providing strategic direction
− Ensuring objectives achieved
− Ascertaining risks managed appropriately
− Verifying resources used responsibly
Importance → Stakeholders rely on effectiveness of governance
→ Good governance reduces risk of failure
→ Investors will pay premium for good governance
6. APPROACHES
Principles- → Voluntary
based → E.g., King IV
Discipline commitment by management to adhere to
correct/ proper behaviour
Transparency how effective management is at making info
available in candid/ accurate/ timely manner
Independence extent to which mechanisms have been put in
place to minimize conflicts of interest
Accountability query/ evaluate actions of those charged with
governance
Responsibility allows for corrective action/ penalizing
mismanagement
Fairness rights of all stakeholders should be
acknowledged/ respected
Social aware of social issues/ prioritize ethical standards
responsibility
Rules- → Compulsory – non-compliance: damaged reputation/ financial
based losses
Companies - Chapter 2C: transparency/ accountability
Act - Chapter 2F: shareholders/ BoD
- Chapter 3C: external auditor
- Chapter 3D: audit committee
PFMA - management of public service organisations
MFMA - management of municipalities
4
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller tanyah1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.87. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78462 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now