The document outlines an agenda for a training on audit documentation, tools, and techniques for internal auditors. It includes introductory lectures, product and case study presentations, exercises, and breaks. It also discusses the internal auditor's role, the audit process, internal controls, documenting controls, risks, and system documentation methods like flowcharts and questionnaires.

3. Tools and Techniques for the Internal Auditor Objective Conduct an audit from beginning to end. Learn to understand risks and to identify, evaluate, and document internal controls. Use the preliminary survey to determine how and what to audit. Discover the best techniques for gathering audit evidence and preparing working papers. Enhance interpersonal and team-building skills throughout the audit. Understand the audit communication process

6. SEATA PHILOSOPHY SEATA is defined as being `an approach to auditing that is concerned with risks, determines specific audit objectives to meet those risks and utilizes a thorough evaluation of the system of internal control as a basis for determining the audit procedures necessary to accomplish the specific audit objectives.'

7. The SEATA approach is equally applicable in all types of audit - financial operating or IT related, as well as with manual and automated systems.

8. The consequence of undetected risk is a potential detriment to the any organization, ranging from loss of cash or income to dissatisfied customers or operational inefficiency .

9. Classified below are the general consequences of risks: 1. Loss of management control OVER ASSETS.

12. 2. A potential cash loss

13. 3. A potential reduction in income DUE TO BAD FUNDING

14. 4. Inaccurate accounting data and reports INCURRING THE WRATH OF THE REGULATORY BODIES

15. 5. Fines or embarrassment to the organization.

16. 6. Poor customer relations

17. 7. Operational inefficiency

18. 8. Loss of business license

21. CREDIT RISK The potential earnings volatility caused by obligors defaulting on their obligations and the adequacy of collateral, if any.

22. LIQUIDITY RISK The potential earnings volatility arising from being unable to fund portfolio assets at reasonable rates over required maturities.

23. MARKET RISK The potential value and earnings volatility in the trading and structural books due to market price changes.

24. OPERATIONAL RISK The potential loss caused by breakdown in information technology, communication and transaction processing. Operational Risk includes inter alia, execution risk, information risk, relationship risk, legal/fiduciary risk and employee risk.

25. CFE-In-Practice offers a comprehensive range of business and technology consulting services for banking and capital markets. We offer Consultancy and Implementation for Third Party Independent SOX and or AML and or ISO 17799 Compliance Certification of your systems

26. CFE-In-Practice

29. What is SEATA ? The Auditors Tool.

84. The Fraud Triangle Motive Opportunity Rationalization

86. Understanding Risk in Internal Audit SML Curve Return Risk Deviation from Return is Risk

87. The Risk Spectrum for any organization in general. Operational Risk Credit Risk Market Risk Liquidity Risk Reputational Risk

88. How ACTIVE DATA can be used to achieve your risk management objectives

89. The Risk Spectrum for any organization in general . Operational Risk Credit Risk Market Risk Liquidity Risk Reputational Risk

90. Operational Risk and Challenges for Banks SML Curve Return Risk Deviation from Return is Risk

91. The SEATA AIG-Caat Approach Risk Definition Product Risk General Risk Business Risk Critical Product Controls Business Policy General Controls System Documentation

92. System Documentation Internal Control Questionnaire (ICQ) Narrative Notes (Interviewing Notes) Flow Charts Analytical Review Procedures (ARP) and Quantitative Testing i.e. MfV concepts and Economic Capital allocation test. Depth Tests Determine the Existence of Controls

93. System Documentation Internal Control Questionnaire (ICQ) Narrative Notes (Interviewing Notes) Flow Charts Analytical Review Procedures (ARP) and Quantitative Testing i.e. MfV concepts and Economic Capital allocation test. Evaluate (THEORETICAL) Adequacy Determine the Existence of Controls

94. Evaluate (THEORETICAL) Adequacy Determine the Existence of Controls System Appraisal Memorandum (Sam)

95. System Appraisal Memorandum (Sam) Part I SYSTEM APPRAISAL ADEQUATE IF NOT ADEQUATE W.P.'s REPORT SYSTEM CONTROL OBJECTIVES YES NO N/A REF. SHEET NO. 1 Transaction or Event Recognition Methods must exist to ensure that all transactions will be identified and recorded with control established close to the source of the transaction .

96. System Appraisal Memorandum (Sam) 2 Transaction Authorisation Methods of transaction approval must be defined with effective procedures to detect and clear errors with the responsibility for approval being at the right level. 3 Transaction Acceptance There must be an effective control on converting data to the form used for accounting or record keeping which will ensure that errors will be detected and cleared and lost transactions will be identified. 4 Account of File Classification Methods must exist to ensure consistency in making account allocations.

97. System Appraisal Memorandum (Sam) 5 Integrity of Processing Methods must exist to ensure there is control on accuracy of data during processing, that only valid files will be used and errors, lost transactions and transactions processed twice will be detected, ensuring that corrected transactions will be properly represented.

98. System Appraisal Memorandum (Sam) ADEQUATE IF NOT ADEQUATE W.P.'s REPORT YES NO N/A REF. SHEET NO. 6 Interface Compatibility Methods must exist to ensure that common data is used wherever possible and in interfacing systems that the information is consistent and compatible and is reconciled while the means to integrate interfacing systems should be thoroughly explored. 7 Accuracy of Reports Methods must exist to ensure that output is reconciled to input, that reporting is complete, meets the requirements of management and is distributed correctly on a timely basis while ensuring management trails are adequate.

99. System Appraisal Memorandum (Sam) 8 Verification of Reports and Files Methods must exist to ensure that reports management are reconciled with underlying data files, that regular comparison of physical items where possible. 9 Error Correction Methods must exist to ensure that all errors occurring at each state of the transaction process will be corrected and reprocessed on a timely basis. 10 Asset Access Restriction Methods must exist to ensure that access to assets will be restricted and assets safeguarded.

100. System Appraisal Memorandum (Sam) ADEQUATE IF NOT ADEQUATE W.P.'s REPORT YES NO N/A REF. SHEET NO. 11 Organization There must be proper segregation between functions of custody, authorisation and recording.

101. System Appraisal Memorandum (Sam) PART II IMPACT OF WEAKNESS WEAKNESS IMPACT OF THE WEAKNESS T.A.P REF.

103. Evaluate (THEORETICAL) Adequacy Determine the Existence of Controls System Appraisal Memorandum (Sam) TAILORED AUDIT PROGRAM (TAP)

104. Execution of TAILORED AUDIT PROGRAM (TAP) Compliance Testing Substantive Testing Report Sheet AIG-Caat Effectiveness Accuracy

105. AIG-Caat Application of Benford Law for Discovery Sampling Techniques in Analytical Review Procedures Software Assurance Process

106. FORM OPINION TAKE UP MEETING ISSUE REPORT