Description

Governance and Compliance Audit

Governance and Compliance Audit is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to effectively plan and conduct a governance and compliance audit.

LEARNING OUTCOMES

A candidate who passes this paper should be able to:

• Identify the objectives and scope of audits
• Design and implement a auditing strategy
• Prepare and interpret various audit reports
• Analyse the various checklists/work sheets for audits
• Design self-evaluation tools
• Draft audit report and audit opinion

CONTENT

1. Basic concepts and elements in auditing
   • Auditing
   • Assessment
   • Monitoring
   • Assurance engagement
   • Non-assurance engagement
   • Reasonable assurance
   • Limited assurance
   • Direct reporting engagement
   • Attestation engagement
   • Compilation engagements
   • Assurance reports
   • Direct reporting
   • Authorities and criteria
   • Assertions and audit
   • Internal audit
   • Statutory audit
   • Legal audits
   • Governance audit

2.                   Governance and compliance risks

• Identifying, managing and monitoring risks
• Impact of non-compliance: Legal impact, Business impact, Reputational impact
• Role of ethics and compliance officers
• Identify, prioritise, and assign accountability for managing existing or potential threats related to noncompliance or ethical misconduct

2.6     Identifying laws and regulations with which the organisation is required to comply in all jurisdictions where it conducts business, as well as critical organisational policies

3.                   Introduction to governance and compliance audit

• General principles of an audit
• The nature and purpose of governance audit
• The nature and purpose of compliance audit
• Types and timing of audits
• Users of audit information and their respective needs
• Qualities of good audit
• The Challenges of Auditing
• Governance and compliance audit in the digital era

4.                   Legal, regulatory and professional and ethical considerations

• Legal requirements on auditing for different types of legal entities
• Codes of governance as issued by ICS and different industry regulators
• Regulatory framework of auditing industry regulators
• Governance and compliance audit standards by ICS
• Code of ethics for Certified Secretaries
• Auditors’ authority, professional liability and legal responsibilities
• Professional objectivity, professional skepticism and professional judgment
• The role of ICS in auditing
• Ethics & integrity as a compliance issue

5.                   Engagement and appointment

• Designing terms of reference
• Designing scope of work and request for proposal
• Tendering and procuring audit services
• Designing proposal
• Qualification requirements
• Negotiating fees amount, structure and timelines
• Acceptance and professional appointments
• Award and execution of contract
• Inception report

6.                   Planning for a governance and compliance audit

• Initial considerations for planning
• Planning process with timelines
• Materiality at planning stage
• Determine audit objective and scope
• Determine the key governance and compliance parameters
• Determining the level of assurance
• Identifying subject matter and criteria
• Understanding the entity and its environment
• Developing audit strategy
• Assessing audit risk, threats and safeguards
• Developing audit plan, programme and procedures
• Preparation of audit working papers
• Developing governance compliance matrix
• Governance and compliance audit checklist
• Quality control
• The audit team

7.                   Documentation and Communication

• Documentation in governance and compliance audit
• Communication between auditor and client organisation

8.                   Conduct of governance and compliance audit

• Inception meeting for clarification and/or understanding of key contact persons, scope, process, timelines, schedule, logistics, operating environment and areas of emphasis
• Reviewing the compliance, governance and internal control systems
• Group governance and compliance audits
• Assessing compliance with the Constitution, applicable laws, rules, regulations, international treaties, international agreements, codes of conduct and internal policies
• Coordination in the conduct of governance and compliance audit
• Role of in-house corporate secretary, internal auditor, external auditor, legal auditor, audit committee, regulatory oversight bodies and other governance assurance functions
• Process of auditing
• The auditing cycle
• Governance and compliance audit tools
• Use of technology
• Scoring methodology
• Data analysis

9.                   Gathering audit evidence

• Nature and sources of audit evidence
• Types of audit evidence
• Evidence gathering techniques
• Data collection instruments
• Document checklists/list of documents to be provided by client for review by the auditor
• Literature review
• Questionnaire/survey or confidential discussions with select members of the board and senior management using a structured format
• Site visits
• Limitations in gathering audit evidence
• Types of audit tests
• Audit sampling
• Using the work of experts
• Using reports of board evaluation and other internal governance
• Methods and techniques of auditing high risk areas
• Data analysis
• Evaluating of evidence and forming conclusions

10.               Reporting governance and compliance audit

• Purpose and users of auditor’s report
• Types, contents, elements and structures of auditors’ report
• Governance and compliance audit opinion
• Consequences of various audit reports and opinions
• Reporting of suspected unlawful and/or unethical acts
• Conclusions/opinions in auditing
• Reports to those charged with governance
• Governance and compliance report on the annual report
• Interim, final and abridged versions of reports
• Submission, presentation and /or filing of audit report
• Closure of the audit assignment
• Audit follow up

11.               Implementing audit recommendations

• Implementation strategies
• Formulating an action plan and compliance matrix
• Role of the Board in implementing the action plan
• Monitoring, evaluating, tracking progress and embedding recommendations/ decisions arising from the

12.               Post governance and compliance audit

• Nature and scope of subsequent events
• General guidelines on subsequent events

13.               Peer review mechanism

• Purpose, scope and types of peer review
• Responsibilities of parties in peer review
• Peer review mechanism stages
• Quality management and assurance measures
• Confidentiality requirements

14.               Governance Awards in practice

• The ICS Governance Awards, other regional governance awards
• Parameters evaluated in the governance awards
• Award evaluation tool and scoring
• Governance Index