Internal Auditing Knowledge Elements
| Exam | Short | Domain | Focus | % | Themes | Topic | Details |
|---|---|---|---|---|---|---|---|
| Internal Audit Knowledge Elements | Knowledge | 1 | Governance and Business Ethics | 5-15 | Corporate/Organizational Governance Principles | Proficiency Level (P) | |
| Business Ethics | Environmental and Social Safeguards | ||||||
| Corporate Social Responsibilities | - | ||||||
| 2 | Risk Management | 10-20 | Risk Management Techniques | Corporate Risk Management Methodology Various Types of Risk Risk Management Tools Managing Corporate Risk |
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| Organizational Use of Risk Management | Enterprise Risk Management | ||||||
| 3 | Organizational Structure, Business Processes and Risks | 15-25 | Risk/Control Implication of Different Organizational Structure | ||||
| Types of Organizational Structure | (e.g., centralized/decentralized) | ||||||
| Schemes in Various Business Cycles | (e.g., procurement, sales, knowledge, supply-chain management) | ||||||
| Business Process Analysis | (e.g., workflow analysis and bottleneck management, theory of constraints) | ||||||
| Inventory Management Techniques and Concepts | |||||||
| Electronic Data Systems | Electronic Funds Transfer (EFT) / Electronic Data Interchange (EDI) / E-commerce |
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| Business Development Life Cycles | |||||||
| International Organization for Standardization Framework | (ISO) | ||||||
| Outsourcing Business Process | |||||||
| 4 | Communication | 5-10 | Communication Skills | (e.g., the process, organizational dynamics, impact of computerization) | |||
| Stakeholder Relationships | |||||||
| 5 | Management and Leadership Principles | 10-20 | Strategic Management | 1. Global analytical techniques | a. Structural analysis of industries b. Competitive strategies (e.g., Porter's model) c. Competitive analysis d. Market signals e. Industry evolution |
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| 2. Industry Environment | a. Competitive strategies related to: - Fragmented industries - Emerging industries - Declining industries b. Competition in global industries: - Sources/impediments - Evolution of global markets - Strategic alternatives - Trends affecting competition |
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| 3. Strategic Decisions | a. Analysis of integration strategies b. Capacity expansion c. Entry into new businesses |
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| Forecasting | |||||||
| Quality management | (e.g., TQM, Six Sigma) | ||||||
| Decision Analysis | |||||||
| Organizational Behaviour | 1. Organizational theory (structures and configurations) 2. Organizational behavior (e.g., motivation, impact of job design, rewards, schedules) 3. Group dynamics (e.g., traits, development stages, organizational politics, effectiveness) 4. Knowledge of human resource processes (e.g., individual performance management, supervision, personnel sourcing/staffing, staff development) 5. Risk/control implications of different leadership styles 6. Performance (productivity, effectiveness, etc.) |
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| Management Skills / Leadership Styles | 1. Lead, inspire, mentor, and guide people, building organizational commitment and entrepreneurial orientation 2. Create group synergy in pursuing collective goals 3. Team-building and assessing team performance |
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| Conflict Management | 1. Conflict resolution (e.g., competitive, cooperative, and compromise) 2. Negotiation skills 3. Conflict management 4. Added-value negotiating |
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| Project Managment and Change Management | 1. Change management 2. Project management techniques |
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| 6 | Information Technology and Business Continuity | 15-25 | Security | 1. Physical/system security (e.g., firewalls, access control) 2. Information protection (e.g., viruses, privacy) 3. Application authentication 4. Encryption |
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| Application Development | 1. End-user computing 2. Change control (Proficiency Level) 3. Systems development methodology (Proficiency Level) 4. Application development (Proficiency Level) 5. Information systems development |
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| System Infrastructure | 1. Workstations 2. Databases 3. IT control frameworks (e.g., eSAC, COBIT) 4. Functional areas of IT operations (e.g., data center operations) 5. Enterprise-wide resource planning (ERP) software (e.g., SAP R/3) 6. Data, voice, and network communications/connections (e.g., LAN, VAN, and WAN) 7. Server 8. Software licensing 9. Mainframe 10. Operating systems 11. Web infrastructure |
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| Business Continuity | 1. IT Contingency Planning | ||||||
| 7 | Financial Management | 10-20 | Financial Accounting and Finance | 1. Basic concepts and underlying principles of financial accounting (e.g., statements, terminology, relationships) 2. Intermediate concepts of financial accounting (e.g., bonds, leases, pensions, intangible assets, RandD) 3. Advanced concepts of financial accounting (e.g., consolidation, partnerships, foreign currency transactions) 4. Financial statement analysis (e.g., ratios) 5. Types of debt and equity 6. Financial instruments (e.g., derivatives) 7. Cash management (e.g., treasury functions) 8. Valuation models 9. Business valuation 10. Inventory valuation 11. Capital budgeting (e.g., cost of capital evaluation) 12. Taxation schemes (e.g., tax shelters, VAT) |
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| Managerial Accounting | 1. General concepts 2. Costing systems (e.g., activity-based, standard) 3. Cost concepts (e.g., absorption, variable, fixed) 4. Relevant cost 5. Cost-volume-profit analysis 6. Transfer pricing 7. Responsibility accounting 8. Operating budget |
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| 8 | Global Business Environment | Economic/Financial Environment | 1. Global, multinational, international, and multi-local compared and contrasted 2. Requirements for entering the global marketplace 3. Creating organizational adaptability 4. Managing training and development |
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| 0-10 | Cultural/Political Environment | 1. Balancing global requirements and local imperatives 2. Global mindsets (personal characteristics/competencies) 3. Sources and methods for managing complexities and contradictions. 4. Managing multicultural teams |
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| Legal and Economic Concepts | General Concepts (e.g., contracts) | ||||||
| Impact of Government Legislation and Regulation on Business | (e.g., trade legislation) |
See also: