TIAPS Module 1 Audit and Assurance workbook

Table of Contents
Module 1: Audit and Assurance ............................................................................................ 4
A. Internal Auditing’s Contribution to Good Governance ....................................................... 6
A.1 Public Sector Environment .......................................................................................... 6
A.2 Public Sector Governance ........................................................................................... 9
A.3 Governance Models ............................................................................................... 15
A.3.1 ISO 37000:2021 Governance of organizations – Guidance ................................ 15
A.3.2 The IIA’s Three Lines Model ............................................................................... 16
A.3.3 CIPFA International Framework: Good Governance in the Public Sector ............ 19
A.3.4 King IV Corporate Governance Report, 2016 ...................................................... 20
A.3.5 Examples of Best Practice in Public Sector Governance .................................... 22
B. Mandate, Independence, and Objectivity ........................................................................ 26
B.1 Importance of Independence and Objectivity ............................................................. 26
B.1.1 Independence, Objectivity, and the Code of Ethics ............................................. 29
B.1.2 Independence, Objectivity, and Competency ...................................................... 30
B.2 Internal Audit Mandate .............................................................................................. 32
B.3 Threats to Independence and Objectivity .................................................................. 36
B.4 Safeguards for Independence and Objectivity ........................................................... 39
C. Assurance and Advisory Engagements .......................................................................... 43
C.1 Characteristics of Assurance and Advisory Engagements ........................................ 43
C.1.1 Assurance Engagements .................................................................................... 46
C.1.2 Consulting (Advisory) Engagements ................................................................... 46
C.1.3 Assurance and Advisory Engagements Compared ............................................. 48
C.1.4 Blended Engagements ....................................................................................... 49
C.1.5 Internal Audit Opinions ....................................................................................... 51
C.1.6 Competencies Needed for Assurance and Advisory Engagements .................... 52
C.2 Auditing Governance................................................................................................. 55
C.3 Fraud, IT, and Cybersecurity ..................................................................................... 58
C.3.1 Fraud .................................................................................................................. 58
C.3.2 Information Technology ...................................................................................... 64
C.3.3 Cybersecurity ..................................................................................................... 67
C.3.4 Data Privacy ....................................................................................................... 70
References and Additional Reading .................................................................................... 72
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