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Institute of Certified Financial Managers

Syllabus for *Level II - Certified Professional Internal Auditor*

External regulation of internal audit. Code of Ethics for internal auditors. 

  • Its basic principles and rules.
  • Classification of the most common threats to internal auditors, principles and rules of professional ethics.
  • The nature of these threats.
  • Precautionary measures that can eliminate these threats or reduce them to acceptable levels.Their nature and classification.
  • The purpose and objectives of international internal audit standards(hereinafter - the IIAS).
  • The main objectives of IIAS and their classification.
  • Standards for the quality and performance standards.
  • Content and application.

The formation, regulation and management of internal audit.

  • Problems and stages of the internal audit service of the entity.
  • Internal legal framework of regulation of the internal audit service.
  • The structure and content of the "Regulations on the internal audit service."
  • The main requirements for modern management system.
  • Scheduling and reporting internal audit service.
  • Reporting its full-time staff.
  • Functions of management: management and organization of the internal audit service, management of staff members, co-ordination.
  • The planning process of validation.
  • Characteristics of pre-planning stage, the overall plan and program.
  • The organization of the document checks and their results.
  • The structure and content of the final documents after the examination.
  • Organization of follow-up to identified deficiencies.
  • The main approaches to creating a system of performance indicators of internal audit service.
  • The evaluation system with aggregate specifications.
  • Specification performance evaluation of the internal audit service. The system of dynamic coefficients.

Internal risks in the economic entity.

  • Fundamentals of risk management in economic entities.
  • Concepts and risk functions.
  • The definition of "significant risk" and the formula to calculate it.
  • Appointment of classifications of risks.
  • Classification of "International Association of Risk Professionals."
  • Classification to identify possible areas of risk occurrence and to determine their respective owners.
    Planning principles of risk-oriented areas of internal audit and control.
  • The main directions of the prior, current and follow-up to the individual level, micro and macro level in economic entities.

Risk management.

  • The current understanding of risk management in the economic entity (risk management).
  • The concept of "risk appetite".
  • The main requirements to the process of risk management.
  • Integration of risk management into the overall management of the economic entity.
  • Standardization and basic methods of risk management.
  • The main methods of organizing a system of risk management.
  • Content and application of models of risk management «COSO» and its essence.
  • Expert qualitative method of risk assessment criteria for their evaluation.
  • Qualitative risk assessment methodology.
  • Methods of "Simple Survey", "Delphi" and "Brainstorm."
  • Organization of their conduct and scope.
  • Possibility of a quantitative risk assessment.
  • Models, "Game Theory", "queuing theory", "Inventory Management".
  • Their advantages and disadvantages.
  • Risk identification by the internal audit service.
  • Risk classification in relation to a specific business process of the internal audit.
  • Interference of internal audit service's risks at each other.
  • Risks of internal audit profession and the risks of processes involved in professional activities of the internal audit service.
  • A list of typical risks of the business process "Internal Audit".

Features of management and operation of the internal audit services in corporations.

  • The role of the Audit Committee of the Board of Directors at the organization of the system of the internal control in the economic entity.
  • The main purpose of its activities, functions and tasks to be solved.
  • Features of the internal audit service in corporations.
  • Features of the evaluation criteria of its activities.
  • The interaction of the internal audit service with the independent external audit service for its work in the economic entity.
  • The essence of the interaction process and its stages.
  • Key areas of co-operation.
  • Possible levels of interaction between internal and external audit services.
  • Criteria for selecting the audit firm and individual auditor to perform annual audits of accounting (financial) statements.
  • The role of the Audit Committee of the Board of Directors at the organization of the interaction of external and internal auditors.

The practice of making recommendations to management personnel of the entity using the "critical point" system "Direct-costing".

  • The essence of the capabilities of Direct-costing.
  • Its features as a management accounting system.
  • The form of financial statements drawn up by this system.
  • Methods of Analysis "Cost-volume-profit"in the Direct-costing.
  • The basic equation for finding the critical point.
  • Restrictive criteria for its use.
  • Linear approximation and relevant level.
  • Problems in creating an information base held by the calculations.
  • Examples of typical problems solved by the method of "cost-volume-profit."