LESSON PLAN

Code : AUD 679 Course : INTERNAL

AUDITING
Credit Unit : 3
Lecturer : PM DR SHARIFAH NAZATUL Tel : +60 10 3663771
FAIZA SYED MUSTAPHA NAZRI
Office : : +60 3 3258 7439

Week Topics Hour Reference

1. Introduction to Internal Auditing

 Overview of internal auditing
 Lines of defense.
 Roles and responsibilities of internal auditors
 Differences between internal auditing and external
1 auditing 3 Chapter 1
 Types of engagements
 Types of audits
 The internal audit profession
2. Corporate Governance Mechanisms

 Overview of corporate governance

2 3 Chapter 3
 Roles and responsibilities of internal auditors to the
corporate governance mechanisms

3. Risk Management and Control

 Key governance elements

 Overview of risk management Chapter 4
3 3
 Components of risk management
 Roles and responsibilities of the participants in risk
management
 Overview of internal control
 Components of internal control
 Inherent limitations of internal control

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Week Topics Hour Reference
4. International Professional Practices
Framework (IPPF)

 Mission of Internal Audit

4 3 Chapter 2
 Core Principles for the Professional Practice of
Internal Auditing
 Definition of Internal Auditing
 Codes of Ethics
 International Standards for the Professional Practice
of Internal Auditing (Standards)
 Recommended Guidance

5. Managing the Internal Audit Function

 Related Standards Chapter 5
5&6  Internal audit charter 6
 Managing internal audit staff
 Managing internal audit activity
 Managing internal audit conflict
 Outsourcing
 Quality assurance and improvement program (QAIP)

6 Implications of Information Technology on Internal

Auditing
 Related Supplemental Guidance 3 Chapter 8
 Scope of IT audit.
7
 Roles and responsibilities of internal auditors in the
system development life cycle (SDLC)
 E-commerce audit

7.Internal Audit Process – Planning and Fieldwork

Chapter 7 &
7 &9  Related Standards 6 Chapter 8
 Overview of risk-based audit
 Planning
 Fieldwork

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 Week Topics Hour Reference
8.Internal Audit Process – Investigation of Fraud

 Overview of fraud
10 & 11  Types of occupational fraud 6 Chapter 10
 Elements of fraud – Fraud Diamond and Fraud
Triangle
 Red flags for occupational fraud
 Roles and responsibilities of internal auditors on
occupational fraud

9.Internal Audit Process – Reporting and Monitoring

 Related Standards
 Overview of reporting
12 & 13  Form and content of internal audit report 6 Chapter 9
 Quality of reporting
 Factors to enhance understandability
 Distribution of report
 Monitoring and follow-up

10.Current Issues in Internal Auditing

 Second line of defense
14  Blockchain 3
 Whistleblowing
 Environmental audit
 Story of success and failure

Assessment

Final assessment (Topic 5,6,7,8,9) 50%

Continuous Assessment:
Quiz (Topic 4 & 6) 10%
Test (Topic 1,2 & 3) 20%
Group Presentation (Case Study/Topic 10) 10%
Group Written Report (Case study/Topic 10) 10% 50%
Total 100%

Text Book

 Mary Lee et al., The Assurance and Consultancy of Internal Audit, 1st ed., McGraw-Hill
Education (Malaysia) Sdn Bhd, 2016, ISBN: 9789670761138.
 Anderson U.L. et al., Internal Auditing: Assurance & Advisory Services, 4th ed., The Institute of
Internal Auditors Research Foundation, 2017, ISBN: 9780894139871.

Reference Book
 Mary Lee et al., Principles and Contemporary Issues in Internal Auditing, 2nd ed., McGraw-
Hill (Malaysia) Sdn Bhd, 2009, ISBN: 9789833850679.
 The Institute of Internal Auditors, International Professional Practices Framework (IPPF),
2017 ed., The Institute of Internal Auditors Malaysia, 2017, ISBN: 9780894139840.
 Chambers R.F, Trusted Advisors: Key Attributes of Outstanding Internal Auditors, Internal
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 Audit Foundation, 2017, ISBN: 9780894139819.
 Spencer K.H., The Internal Auditing Handbook, 3rd ed., John Wiley & Sons Ltd., 2010,
ISBN: 9780470518717.
 Sawyer L.B. et al., Sawyer’s Internal Auditing: The Practice of Modern Internal Auditing,
5th ed., The Institute of Internal Auditors , 2003, ISBN: 9780894135095.

Topics for Test, Quizzes and Group Assignment/ Presentation

Test (100%; 2 hrs) Quizzes Group Assignments/
Presentation
(20%) (10%) (20%)
 Intro to Internal Auditing.  Internal Audit Process. 10. Current Issues in IA & A
 Internal Auditing in CG.  IPPF case study from the textbook
 Risk and Control. (tba).

Or Case Study

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 WEEKLY LESSON PLAN
For the Academic Session I of MARCH 2022 – SEPT 2022

Week Date Topic Assessment Hour

(1 – 4) (28/3 – 17/4) Entrance Survey – 4 weeks
1 28/3 – 1/4 Introduction to Internal Auditing Test 3
2 4/4 – 8/4 Corporate Governance mechanisms Test 3
3 11/4 – 15/4 Risk Management and Control Test 3

QUIZ (5%)
International Professional Practices
4 18/4 – 22/4 Quiz 3
Framework (IPPF)
5 25/4 – 29/4 Managing the Internal Audit Function
Exam 6
30/4 – 7/5 CUTI PERTENGAHAN SEMESTER/ HARI
RAYA AIDIL FITRI
6 9/5 – 13/5 Managing the Internal Audit Function (cont’d)
Test (20%)

7 16/5 – 20/5 Implementation of Information Technology on

Internal Auditing Exam 6

8 23/5 – 27/5 Internal audit process – Planning

and Framework
CUTI KHAS PERAYAAN
30/5 – 5/6

Internal audit process – Planning

9 6/6 – 10/6 Quiz Exam 3
and Framework (cont’d)
10 13/6 – 17/6 Internal audit process -Investigation of Fraud
Exam 6
11 20/6 – 24/6 Internal audit process -Investigation of Fraud
(cont’d)
(12–16) Exit Survey – 5 weeks
12 27/6 – 1/7 Internal audit process – Reporting Exam 6
and monitoring
13 4/7 – 8/7 (cont’d)
14 11/7 – 15/7 10. Current Issues in Internal Auditing Assignment 3
18/7 – 24/7 Study Leave (1 WEEK)
25/7 – 14/8 Final Examination (50%) – 4 weeks
15/8 – 2/10 Semester Holiday – 5 weeks