This module introduces participants to the conceptual framework of risk-based auditing within financial institutions. It covers:

Understanding the shift from traditional auditing to risk-based approaches.
Overview of the financial sector’s unique risks, including market, credit, operational, and compliance risks.
Role of internal audit in risk management and governance structures.
Key concepts of enterprise risk management (ERM) and how ERM frameworks support internal audit strategies.
Evaluating the readiness of internal audit functions to adopt risk-based methodologies.

Building on foundational knowledge, this module focuses on practical audit planning:

Identifying key stakeholders and effective consultation processes to align audit priorities.
Techniques for asking targeted questions to avoid unnecessary audit scope (“turkeys”) and focus on critical risks.
Linking audit plans to organizational risk assessments and strategic objectives.
Incorporating value and value-add considerations into the audit plan to ensure meaningful outcomes.
Balancing the expectations of senior management and audit committees regarding audit coverage.
Addressing resource constraints strategically to foster constructive discussions about capacity and priorities.
Long-term and ad hoc audit planning best practices.

This module dives deep into assessing and enhancing internal controls to mitigate identified risks:

Frameworks for evaluating the design and effectiveness of internal controls.
Methods to test controls that address both operational and compliance risks.
Integrating control assessments into the overall risk-based audit plan.
Using control evaluations to identify gaps and recommend improvements aligned with regulatory requirements.
Case studies on effective control remediation in financial institutions.

Given the high regulatory scrutiny of financial institutions, this module covers:

Understanding compliance risk and its impact on financial organizations.
Regulatory environments and key compliance standards relevant to banks, insurers, and other financial entities.
Approaches to auditing compliance programs, policies, and procedures.
Techniques for monitoring regulatory changes and adapting audit plans accordingly.
Strategies for reporting compliance findings to management and regulators.
Practical tools to help audit teams support organizational compliance initiatives.

The final module focuses on applying knowledge and fostering ongoing development:

Steps to develop and implement a risk-based internal audit framework tailored to financial institutions.
Practical tools and templates for risk assessments, audit planning, and reporting.
Strengthening relationships with stakeholders through transparent communication and strategic engagement.
Leveraging technology and data analytics in risk-based audits for enhanced efficiency and insight.
Continuous learning and adapting to evolving risks and regulatory landscapes.
Measuring the impact of risk-based auditing on organizational performance and risk mitigation.

Risk-Based Internal Audit for Financial Sector in London

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