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380891: Internal Auditing (Online)
MGMT-X 423.2

  • Summer 2021
  • Section 1
  • 4 Credits
  • 06/21/2021 to 09/05/2021
  • Modified 06/18/2021

Description

This course introduces students to the internal audit profession and the internal audit process and is designed for accounting, auditing, and business students; CPAs, CIAs, and CMAs or candidates; controllers and internal auditors; financial and auditing managers; corporate executives; and federal and state auditors and managers. Topics include the definition of internal auditing, The IIA's International Professional Practices Framework (IPPF), risk, governance and control issues, and conducting internal audit engagements—including report writing and interviewing skills. Additional topics include Internal Auditing (IA) standards; internal controls; managing the IA department; IA working papers, procedures, evidences, sampling, and flowcharting; 30 major areas of operational auditing, such as production, marketing, finances, information and digital communications technology, purchasing, and personnel; fraud detection, including a discussion of the latest developments in financial crimes; major areas of management auditing; IA reports; and evaluation of the IA function.

Outcomes

By the end of this course, a successful learner should be able to: 

  • Delineate the roles and responsibilities of internal auditors (IA) within an organization and its professional practices
  • Specify and interpret governance, risk management and internal control concepts
  • Apply the process for providing a risk-based, process and control-focused internal auditing approach, including:
    • Considerations in the planning phase
    • Risk assessment and analysis
    • Collecting and documenting audit evidence 
    • Communicating audit results 
  • Recognize specific risk issues related to information technology and fraud situations
  • Identify the similarities and difference between assurance and consulting engagements

Most students are taking this course in order to earn enough credits to sit for the CPA exam. This course will be much different from your other accounting courses, as there are fewer “hard” rules to memorize.  This course covers many concepts and skills that CPAs will find valuable for their accounting career, as well as those who move into operational/financial management or non-accounting careers.

Materials

Internal Auditing (Assurance &Advisory Services)

  • Author: Urton L. Anderson, et al
  • Publisher: The Internal Audit Foundation
  • Edition: 2017
  • ISBN: ISBN-13: 978-0-89413-987-1

 ISBN-13:  978-0-89413-987-1

(Earlier versions of the textbook, Internal Auditing: Assurance & Consulting Services by Kurt F. Reding et al, published by The Institute of Internal Auditors Research Foundation, 2013 editon. ISBN-13: 978-0-89413-740-2 (2009 edition; ISBN 978-0-89413-643-6 or 2007 edition; ISBN 978-0-89413-610-8 can also be used)

Other Instruction materials

Refer to Lectures/PowerPoint and other materials included in the weekly modules) 

External links-

Institute of Internal Auditors:  www.theiia.org

Information Systems Audit & Control Association:  www.isaca.org

Control Framework:  www.coso.org

Internet/Discussions Forum etiquette:  www.albion.com/netiquette/corerules.html

Technical Support: To contact UCLA Extension Course Management Support email them at [email protected].  To get support from Canvas Support Team, click on the “Help” link on the upper right corner of the Canvas page, and click on “Live Chat” or “Report a Problem”.

Evaluation

Grading:  300 points possible for all course components

Grades are assigned based on quality of work and timely completion as follows:

Criteria

Types of evaluations and related weights
Type Weight Topic Notes
Discussion participation 40%

Varying points are given for each discussion, with total points for all DQs worth 40% of  the final grade. A minimum of 2 postings for each Discussion Question is required to be eligible for maximum number of points.  A substantive posting should include your assessment and critical analysis of what you read (more than just cutting & pasting passages from resources), what you experienced, a short synopsis of key concepts, or why some arguments/assumptions could be incorrect. Please review the Discussion-Reflection Rubric for further information on grading guidelines.

Assignments & Quizzes 40%

Varying points are awarded for each assignment and quizzes, worth 40% of your total grade.

Final Exam 20%

The final exam is comprised of 28 multiple choice and 4 T/F questions, for a total of 60 points, or 20% of your grade.  The final will be available one week prior to the due date which allows for plenty of time to complete the exam.  The final will be comprehensive and cover materials from the discussions, assignments and readings.  You will have only 1 attempt on this exam.   The final exam is due at 11:59 PM Tuesday night.

Breakdown

Letter grade       Range:

 

A+

    100%

to 97.0%

A

< 97.0%

to 94.0%

A-

< 94.0%

to 90.0%

B+

< 90.0%

to 87.0%

B

< 87.0%

to 84.0%

B-

< 84.0%

to 80.0%

C+

< 80.0%

to 77.0%

C

< 77.0%

to 74.0%

C-

< 74.0%

to 70.0%

F

< 70.0%

to 0.0%

Discussion Rubric

This rubric will be used to assess the quality of your participation in the online discussion forums.  Please use this tool as a guide when constructing your postings.

 

Unsatisfactory

Basic

Proficient

Distinguished

Mechanics of the Posting

Uses incomplete sentences, is unstructured in its organization, and includes frequent or consistent errors in mechanics (grammar, spelling, usage) in each paragraph. The posting is unreadable and there is a distinct lack of tone.

Uses complete sentences and the posting is comprehensible. The organization could be improved to present a more coherent argument, statement, or question. Includes 2-3 mechanical errors grammar, spelling, usage) per paragraph.  The tone is respectful.

Uses complete sentences, organization is evident, and the posting includes no more than one mechanical error (grammar, spelling, usage) per paragraph. The tone is clear and respectful

Uses complete sentences, organization is clear and thoughtful, the posting is grammatically correct, and free of spelling errors. The tone is clear and respectful.

Participation in the Discussion

Provides minimal comments and information to other participants in the forum.

Provides comments, and some new information on a sporadic basis. Interacts with only 1-2 participants in the forum.

Provides comments, discussion, questions, and new information on a fairly regular basis. Interacts with a few participants in the forum.

Provides comments, discussion, questions, and new information on a regular, active, and weekly basis. Shows a high degree of interaction with other participants in the forum.

Content of Posting

Writes a general or superficial posting that is unrelated to the discussion at hand and/or posts no comments.

Demonstrates a restricted understanding of the concepts, topics, and ideas as evidenced by posting information that could be derived from prior posts and/or including highly general comments.

Demonstrates an adequate understanding of the concepts, topics, and ideas as evidenced by posting superficial, or general statements in the forum. Includes a few details in the posting.

Demonstrates a solid understanding of the concepts, topics, and ideas as evidenced by thoughtful responses and questions that show a clear connection (are integrated) with the course material at hand. The posting shows depth, and includes many supporting details.

Critical Thinking Evidenced by Posting

Provides no evidence of agreement or disagreement with an existing discussion.

Indicates agreement or disagreement with an existing discussion but provides no justification or explanation for comments.

Indicates agreement or disagreement with an existing discussion including a limited explanation or justification. Provides comments, discussion, and questions without a clear connection to the course material at hand.

Demonstrates a critical analysis of an existing posted idea or introduces a different interpretation to an existing concept or idea. Includes comments, discussion, and questions that have a clear connection (are integrated) with the course material at hand.

 

Reflection Rubric

During your course, you will be asked to reflect on your work and how you will apply what you have learned.  This rubric will help you assess your reflections.

 

Unsatisfactory

Basic

Proficient

Distinguished

Coherence & Relevance

One cannot discern the learner’s perceptions and attitudes or what he or she learned.

Paper adequately describes the learner’s perceptions, attitudes and what she or he learned; however, gaps and omissions are present.

Paper describes the learner’s thoughts, perceptions, attitudes and what was learned; a few gaps or omissions are present.

Paper thoroughly describes the learner’s perceptions, attitudes and what he or she learned from the project.

Transformation

It is not clear how the experiences transformed the learner.

There are gaps in the learner’s description of how the experiences helped transform him or her into a scholar-practitioner.

Learner adequately describes how the experiences helped transform him or her into a scholar-practitioner.

Learner clearly describes how the experiences helped transform him or her into a scholar-practitioner.

The rubrics provide a way for you and your facilitator to agree on the level of performance. It provides the performance-based criteria that help to steer discussions so that they are effective and reflect on your learning experiences.

Course Policies

Planning Your Study Time

To plan your study time, it is estimated that you will spend 3 hours per week "in class" with the instructor and approximately 7 additional hours per week outside of class studying for exams, reading, and completing assignments. Depending on the extent of your academic preparation and recent college-level coursework in this topic area, the amount of study time needed may vary considerably.

Instructor Expectations

I'm looking forward to working with you, learning about what you're educational goals are, and how you plan to use the course in your career. We bring different kinds of experiences and knowledge and each of you will have different needs, expectations and concerns. As your facilitator, it will be easier to help meet your needs if you communicate these concerns directly to me on a timely basis. I hope you'll always find that I am responsive and supportive.

Here are a few expectations I would like emphasis:

Commit to doing your best in this course and interacting with your classmates.
Read the chapters and submit the completed assignments on time.
Participate in group discussions on a timely and meaningful basis.
Stay on schedule so everyone can benefit from each other’s postings/replies.

“Discussion” (DQ) & Interacting with Classmates: Each student is expected to post a well-researched answer to each discussion question, and post thoughtful replies to at least one other student’s postings. This means a minimum of 2 postings per DQ. Pacing your work earlier in the week will give you more time to get feedback from your classmates, learn from their viewpoints and allow you to further demonstrate and enhance your understanding of the issue or topic with your replies. Your responses should include more than phrases such as "I agree with that" or "Interesting comment." A substantive posting should include your assessment and critical analysis of what you read, what you experienced, a short synopsis of key concepts, or why other arguments could be incorrect.

Your posts should feature good writing, correct spelling and mechanics. Internal auditors are judged by the quality, clarity and conciseness of their communication skills. Communication should be professional and use good netiquette. In the spirit of scholarly discussion, Responses that disagree with others should apply to the topic and should be respectful. Your postings should help you to test your ideas, reinforce what you have learned, and share resources with others in the class. Please review the Discussion & Reflection Rubric sheets for more details. Posts/replies made after the assigned week will lose points as discussed in the grading section.

Instructor’s Comments in the DQs: I will be in the classroom several times a week to make sure the discussions are heading in the right direction and/or provide clarification, as needed, to stimulate interaction among the group. And typically, I will summarize the discussions with some closing comments that emphasis a real world perspective on the auditing issues involved.

No posted messages are private - so please feel free to call me directly if you have any personal or specific questions that the group may not benefit from. I'd like to talk and get to know you. Of course, you can send an email and I should respond within 24 hours.

If after reading the assignment/DQ, you do not understand what to do, please call or email me so that I can explain the assignment. This is much better than turning in an assignment that is not done correctly or timely and losing points.

Deadlines and Late Submission

Life happens and I understand that work and family emergencies occur.  If you will contact me before the work is late, we can try to work out something that will mesh with your schedule.  However, if you don’t contact me before-hand, and the work from one week is posted late during the next week, you’ll lose up to twenty percent for each day that it is late.  After the work is more than 7 days late, it will no longer receive a grade.  There are no extensions for the class.  All work must be turned in by the last day of class.

Institutional Policies

Student Conduct

Students are subject to disciplinary action for several types of misconduct or attempted misconduct, including but not limited to dishonesty, such as cheating, multiple submission, plagiarism, or knowingly furnishing false information to the University; or theft or misuse of the intellectual property of others or violation of others' copyrights. Students are encouraged to familiarize themselves with policy provisions which proscribe these and other forms of misconduct at: https://www.uclaextension.edu/pages/str/studentConduct.jsp

Services for Students with Disabilities

In accordance with the Americans with Disabilities Act of 1990, UCLA Extension provides appropriate accommodations and support services to qualified applicants and students with disabilities. These include, but are not limited to, auxiliary aids/services such as sign language interpreters, assistive listening devices for hearing-impaired individuals, extended time for and proctoring of exams, and registration assistance. Accommodations and types of support services vary and are specifically designed to meet the disability-related needs of each student based on current, verifiable medical documentation. Arrangements for auxiliary aids/services are available only through UCLA Extension’s Service for Students with Disabilities Office at (310) 825-7851 or by email at [email protected]. For complete information see: https://www.uclaextension.edu/pages/str/studentswithDisabilities.jsp

Incompletes

Your instructor may post the interim grade Incomplete/I if at the end of the class your overall work is of passing quality but a portion could not be submitted for understandable reasons (e.g. illness). It is your responsibility to petition your instructor for permission to submit work late and to provide an explanation, and it is his or her sole decision whether to accept the explanation. If permitted, the Incomplete/I grade will be posted and a time frame defined for you to submit the missing work, ranging from one to twelve weeks. Incomplete/I grades that remain unchanged after twelve weeks will lapse to F, NP or U. Receiving an I grade entitles you to submit only the missing work your instructor has agreed to accept late, and does not allow other work to be retaken or oblige UCLA Extension to provide continuing access to course materials via Canvas. The Incomplete/I grade is not an option for courses that do not bear credit, such as 700, 800, or 900-level courses. For complete information, see: https://www.uclaextension.edu/pages/str/grading.jsp

All Grades are Final

No change of grade may be made by anyone other than the instructor, and then, only to correct clerical errors. No term grade except Incomplete may be revised by re-examination. The correction of a clerical error may be authorized only by the instructor of record communicating directly with personnel of Student and Alumni Services.

Sexual Harassment

The University of California is committed to creating and maintaining a community where all individuals who participate in University programs and activities can work and learn together in an atmosphere free of harassment, exploitation, or intimidation. Every member of the community should be aware that the University prohibits sexual harassment and sexual violence, and that such behavior violates both law and University policy. The University will respond promptly and effectively to reports of sexual harassment and sexual violence, and will take appropriate action to prevent, to correct, and when necessary, to discipline behavior that violates our policy.

All Extension students and instructors who believe they have been sexually harassed are encouraged to contact the Department of Student and Alumni Services for complaint resolution: UCLA Extension, Suite 113, 10995 Le Conte Ave., Westwood; Voice/TTY: (310) 825-7031. View the University’s full Policy on Sexual Harassment and Sexual Violence at http://policy.ucop.edu/doc/4000385/SHSV.

Additional Items

Protecting Privacy and Data During Live Instruction

Live meeting sessions for this class, when applicable, are being conducted over Zoom. As the host, the instructor may be recording live sessions. Only the host has the ability to record meetings, no recording by other means is permitted. Recorded sessions will be posted in the Videos area of this class unless otherwise notified. Due to privacy, recordings are not available for download and are only accessible via Canvas for the duration of the class. If you have privacy concerns and do not wish to appear in the recording, do not turn on your video and/or audio. If you also prefer to use a pseudonym instead of your name, please let the instructor know what name you will be using so that the instructor knows who you are during the session. To rename yourself during a Zoom meeting, click on Participants, click on your name, click on More, click on Rename. If you would like to ask a question, you may do so privately through the Zoom chat by addressing your chat question to the instructor only (and not to ""everyone""). Additionally, chat may be used and moderated for live questions, and saving of chats is enabled. If you have questions or concerns about this, please contact the instructor via Canvas Inbox.

Pursuant to the terms of the agreement between Zoom and UCLA Extension, the data is used solely for this purpose and Zoom is prohibited from re-disclosing this information. UCLA Extension also does not use the data for any other purpose. Recordings will be deleted when no longer necessary. However, recordings may become part of an administrative disciplinary record if misconduct occurs during a video conference.

Course and Instructor Evaluation

UCLA Extension values your feedback on course and instructor evaluations. We ask all students to take a few minutes to complete an end-of-course evaluation survey. Updates to the course and instruction are influenced by your feedback. Understanding your student experience is essential to ensure continuing excellence in the online classroom and is appreciated by your instructor and the UCLA Extension academic leadership.

Your participation in a survey is voluntary, and your responses are confidential. After instructors submit grades, they will be given an evaluation report, but this report will not contain your name.

About Your Online Course Materials

Please note the following about online course components at UCLA Extension:

  • Students must have basic computer skills, including the use of word processing software, email, and the ability to use internet browsers, such as Safari, Firefox, or Chrome.
  • Students are responsible for meeting the technical requirements of Canvas and familiarizing themselves with the Canvas Learning Management System.
  • Students are responsible for keeping a copy of all assignments and work submitted, and to be aware of all assignments, due dates, and course guidelines.
  • Students are encouraged to keep and/or download a local copy of their assignment files, as access to the online environment of a specific course is limited to 30 days after the final course date, as listed in the course catalog.

    If you need assistance downloading student materials from your course, please contact Canvas Support or the UCLA Extension Learning Support Team.

UCLA Extension Canvas and Learning Support

For immediate 24/7 Canvas technical support, including holidays, click on Help (located on the menu to the left) where you can call or chat live with a Canvas Support representative.

UCLA Extension Instructional Design and Learning Support
The UCLA Extension Learning Support staff assists both students and instructors with Canvas-related technical support, as well as general and administrative questions.

Learning Support staff is available Monday through Friday, from 8 AM to 5 PM (Pacific Time), except holidays:

Schedule

This page organizes your course by weeks & textbook chapters:   In addition to the required readings from the textbook, you’ll be expected to perform additional research and inquiry on the web, as needed, for various assignments/DQs.

This online course has each week starting on Monday and all weekly assignments are due by midnight Sunday.  It is important to stay on schedule as subsequent topics build on previous lessons. 

Course calendar and related activities
When Module Title Notes
Week One
Introduction to Internal Auditing (Chapter 1 of textbook)

Learning objectives;

  • Obtain a basic understanding of internal auditing and the internal audit process
  • Become familiar with the internal audit profession and Institute of Internal Auditors
  • Distinguish between internal auditing and external auditing services

Readings:   (Textbook: Internal Auditing-Assurance & Consulting Services by K. Reding)

  • Introduction to Internal Auditing  (Chapter 1)
  • The relationship between a company’s Audit Committee & Internal Audit:  (Audit Committees & Internal Audit.doc)

References/Resources:

W1DQ1 - Post your Biography & Follow-up (5 points)

Please post a bio to this discussion forum that includes information about your work background, education, and what you hope to get out of this course (certificate requirement, personal development, etc.).  Include your experience with internal auditing , online learning and any impressions on what “internal control” is all about.   Please include something about your personal interests, your email address and a photo so we can envision you as we work together. 

Please reply to at least one other classmate regarding a point of interest from their bio.  It could be in response to similar work history, common experience or other connections.  The response should help stimulate the building of a network by sharing experiences and information with each other 

W1DQ2 – External and Internal Auditing  (10 Points)

W1DQ3 –State of the  Internal Auditing profession (10 points)

 

W1A1 – Institute of Internal Auditors (5 points)

 

Week Two
Professional Standards & Ethics (Chapter 2); Governance & Risk Management (Chapter 3 & 4)

Learning objectives:

  • Become familiar with the profession’s ethics, standards and guidance materials.
  • Define governance, risk & enterprise risk management (ERM) concepts

Readings:  

  • Professional Practices Framework (IPPF) (Chapter 2)
  • Governance (Chapter 3)
  • Risk Management (Chapter 4)

Resources/References:

  • http://www.theiia.org/guidance/standards-and-guidance/ippf/standards/

W2DQ1-"Risk Management" Thinkgin (10 points)

 

W2DQ2-Enterprise Risk Management (ERM)  (10 points)

 

W2A1- IIA’s Professional Practices Framework (5 points)

 

Week Three
Business Process & Business Risks (Chapter 5)

Learning objectives:

  • Understand how a business structure its activities to achieve their objectives
  • Understand approaches to documenting business processes and related risks
  • Become familiar with a process/risk matrix model approach

Readings:

  • Business Processes & Risks

W3DQ1-Business Processes, ICFR & IA's Role (10 points)

 

W3A1-Risk/Control Matrix (15 points)

 

W3A2- Multiple Choice Questions (5 points)

 

Week Four
Internal Control (Chapter 6)

Learning objectives:

  • Understand what is meant by internal control
  • Identify the components of an effective internal control framework
  • Know the roles & responsibilities for internal control in an organization
  • Understand the process for evaluating the system of internal controls

Readings:

  • Internal Control

Lecture:

  • A PowerPoint presentation on internal controls:  Internal Control Slides.ppt 

Resources/References:

Visit other sources of recognized control frameworks and models:

  • Committee of Sponsoring Organizations (COSO):  www.coso.org
  • Canadian Chartered Accountants (CoCo):  www.cica.ca

 W4DQ1-Internal control myths (10 points)

 

W4A1-Internal control framework (10 points)

 

W4DQ2- Governance, risks  & controls (5 points)

 

W4A2-Multiple Choice Questions (5 points)

 

Week Five
Reflection/Open Discussions; Assignment

Learning objectives:

  • To re-enforce, challenge or question concepts learned to date
  •  risk-based process approach to auditing. 

 

 

W5DQ1-Reflections & Open Discussions (5 points)

  

 

W5A1 -  Audit Assignment  (15 points)

The attached assignment is a good way to assess your ability to take a risk-based, business process approach to evaluating controls.  

Week Six
IT Risk Management (Chapter 7); Fraud Risks & Controls (Chapter 8)

Learning objectives:

  • Become familiar with some fundamental IT concepts, risks and IT controls
  • Obtain a basic understanding of fraud risk and controls
  • Become aware of fraud prevention, deterrence and detection programs
  • Understand professional skepticism, professional judgment, and use of forensic technology

Readings

  • Information Technology Risk Managemnt
  • Fraud
  • CoBiT Executive Summary (optional)

W6DQ1-IT Risks & Controls (10 points)

 

W6DQ2-Fraud Situations  (10 points)

 

W6A1-Multiplec Choice Questions (5 points)

 

Week Seven
Audit Evidence, Workpapers & Audit Sampling (Chapter 10 & 11)

Learning objectives:

  • Understand key activities is planning, performing and reporting on the results of an audit
  • Become familiar with how an auditor gathers audit evidence
  • Understand the importance of a well-prepared audit working papers
  • Become familiar with statistical and nonstatistical sampling in audit testing

Readings:

  • Audit Evidence & Workpapers
  • Audit Sampling & Data Analytics

W7DQ1- Audit Testing  (5 point)

 

W7A1-Sampling risks & Data Analytics  (5 points)

 

W7A2-Multiple Choice Questions (10 points)

 

Week Eight
Conducting Assurance Engagements (Chapter 12 &13)

Learning objectives:

  • Determine engagement purpose, objectives and scope
  • Understand how a process-level risk assessment is performed
  • Describe how to evaluate design adequacy and how to design different types of testing approaches
  • Conduct & document certain types of tests to gather evidence 

Readings:

  • Introduction to the Engagement Process
  • Conducting the Assurance Engagement

W8A1-Audit Assignment: Payroll Audit (20 points)

Attached is a case study on performing an assurance engagement of a payroll process.

 

W8DQ1-Audit Design & Operating Effectiveness (5 points)

 

W8A2-Multiple Choice Questions (10 points)

 

Week Nine
Communicating Audit Results & Follow-up (Chapter 14)

Learning objectives:

  • Identify the different forms of and steps involved in creating effective communications within an engagement
  • Understand what is involved in effective monitoring of and follow-up on audit results

Readings:

  • Communicate Assurance Engagements Outcomes

 

W9DQ1-Audit Criteria & Audit Conclusions (5 points)

 

 

W9A1-Comommunicating Results Assignment (10 points)

See attached file for an exercise on communicating audit results for an engagement.  This assignment covers many concpets covered in previous chapters & lessons

Week Ten
Consulting Engagements (Chapter 15); FINAL EXAM

Learning objectives;

  • Awareness of the different types of consulting activities and services provided by internal auditors
  • Understand the benefits to an organization when internal auditors acts as an agent of change for risk management
  • To reflect on what you’re learned to-date and where you believe the internal audit profession is headed

Readings:

  • Consulting Engagements

W10DQ1-Course Reflections; Internal auditing  (5 points)

 

FINAL EXAM  (60 points)

The final exam is comprised of 28 multiple choice and 4 T/F questions, for a total of 60 points.  The final will be available one week prior to the due date which allows for plenty of time to prepare for the exam.  The final will be comprehensive and cover materials from the discussions, assignments and readings.  You will have only 1 attempt on this exam but there is not time limit.    The final exam is due at 11:59 PM Tuesday night.      Good luck.