Internal Auditing: Basics & Best Practices

                                                                              

DAVID MCNAMEE, CIA, CISA, CFE, CGFM

David McNamee has thirty years experience in audit and data systems, including previous experience as a Director of Internal Audit at a multi-billion dollar corporation.  He is President of his own consulting firm, Management Control Concepts, to offer his expertise in internal audit and risk management to others for the past dozen years.

David McNamee has been a frequent invited speaker at international and regional internal auditing conferences on the topics of ethics, risk assessment, and internal audit management, as well as local chapter meetings and seminars for the IIA, AGA, ISACA and others.  He is the author of many articles in professional internal auditing journals, including an award-winning research paper on resolving ethical problems.  In addition, he has authored several books published by the IIA on risk assessment, procurement and operational auditing.  He has been active in the Institute of Internal Auditors at the local and international levels.

David McNamee is a Certified Internal Auditor, a Certified Information Systems Auditor, a Certified Fraud Examiner, and a Certified Government Financial Manager.  He has contributed to improving the audit function with industry, government and not-for profit organizations all over the world. 

David McNamee holds a Master of Science in Telecommunications Management, a Master of Business Administration, and a Certificate in Purchasing Management.  He has taught Financial Accounting at the Santa Clara University Graduate School of Business and is an invited lecturer in Auditing at San Francisco State University and at universities in New Zealand and Australia.  For seven years he was an instructor in the CIA Review Course sponsored by the San Francisco Chapter of the IIA.

In this electronic publication he shares with us the vast amount of knowledge he has gained in his 30 years experience about “Internal Auditing: Basics and Best Practices”.

His other publications include “Auditing Fraud”, “Auditing Purchasing and Contracts”, “Control Self Assessment” and “Risk Management and Risk Assessment” electronic publications available on CD at http://www.pleier.com.

Additional references and information are available at http://www.mc2consulting.com/.



Over the past two decades, David McNamee has been privileged to help a number of Audit Departments improve the capabilities of their internal audit staff and has taught senior management how to “see around corners.”  His practice has taken him all over the world working with all types of organizations.  

David decided to share the tools that he uses in his much sought after in-house training in this extremely cost-effective format so that Audit Departments of every size can benefit from his knowledge and expertise.

Use the enclosed PowerPoint to review as individuals or as a group while using a copy of the workbook to learn the Basics and Best Practices of Internal Auditing.  Read the clearly illustrated material and perform the 14 exercises in the workbook in sequence. Use these tools in a field-tested, structured, and interesting approach for initial training of junior level auditor or refresher training of any auditor.

Auditors and Audit Departments that purchase this electronic publication on CD can duplicate the enclosed workbook royalty free for training of individual auditors in that department and for in-house group training.

Professional Organizations that purchase this electronic publication on CD can duplicate the enclosed workbook and use that material to conduct group training by sending a royalty fee of $20 for each copy of the workbook to:


When professional associations forward a check please include the place and date that the training was held.

Your feedback at pleier@pleier.com about this publication would be most appreciated.

"Internal Auditing: Basics & Best Practices PowerPoint Presentation"

The 85-slide PowerPoint offers a number of practical suggestions as to what are the basics and best practices that Internal Auditors should learn and apply.

This PowerPoint is an excellent complement to the workbook by providing assistance in understanding the material in either a self-study or group training situation and includes the following topics:

"Internal Auditing: Basics & Best Practices Workbook"

This compact 87-page workbook is a complete course to use for individual or group study to better understand the basics of internal auditing and the best practices used by world-class Internal Audit Departments.

This workbook is a 3-day course to introduce the basic skills for beginning internal auditors or to serve as a refresher in “best practices” for intermediate level internal auditors.

The workbook uses the setting that you have just formed a new internal audit group “The Quality Review Team” to perform internal operational audits.

If used for group training, it is best given to the staff for 1 day per week over 3 weeks with an appropriate reading list in company manuals and internal audit standards in between.
This workbook publication presents practical information including:

Day 1:

The Purpose of Internal Auditing

The Nature of Business Risk and Internal Control

• The COSO Sequence:  Established Objectives--Risks--Controls
• The Management Imperative:  Putting assets at risk to achieve objectives

The Internal Audit Framework

• The Audit Model:  Comparing What Is with What Should Be
• The Conditions of Independence and Objectivity

Day 2:


Beginning the Audit

• Establishing the Audit Objective and Scope
• Planning the Audit

The Nature of Evidence

• Working Backward from the Audit Objective
• Matching the Evidence to the Audit Objective
• Defining Audit Tests

The Nature of Fraud

• The Conditions of Fraud
• The Red Flags of Fraud in the Purchasing Cycle
• Video:  The Role of the Auditor in Dealing with Fraud

Documenting the Audit

• The Elements of Good Working Paper Technique
• Building a Framework for the Audit Process
• Different Techniques for Different Audit Objectives

Day 3:

Summarizing and Evaluating Results

• Developing Conclusions from Tests
• Developing Findings:  Enhancements and Assessments

Writing Effective Audit Reports

• Principles of Good Communication
• Words to Use and Words to Avoid
• Alternative Types of Reports

Following Up for Effectiveness

• Follow-up Methods
• Dealing with Repeat Findings

Roles and Relationships in Auditing

• Collaboration and CoActive Principles
• Team Auditing and Team Effectiveness

If you like the quality of this electronic publication on CD check http://www.pleier.com or call (949) 830-1575 9AM to 4PM California USA time for additional information.

Current Publications – Click the link to preview:
 

• 21st Century Audit Management – Opportunities and Challenges – by a number of contributing authors
• A Practitioner’s Guide to Performance Auditing by Muhammad Akram Khan
  
• Auditing Fraud - Complete Publications, Threat Scenarios, Purchasing & Contracts Fraud - by David McNamee
• Auditing IT Infrastructures by Alan Oliphant
• Auditing Purchasing and Contracts by David McNamee
  
• Control Self Assessment by David McNamee
• Internal Auditor Toolkit by Michael Lapelosa
• Modern Integrated Audit Approach by Michael Lapelosa
• Risk Management - Best Practice, Case Studies, and Related Material – by a number of contributing authors
• Risk Management and Risk Assessment by David McNamee
• Systems Analysis and Design by Bill Anderson

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