How to Assess Risks and Evaluate Controls

One of the primary objectives of every auditor is to assess organizational risks and evaluate the effectiveness of the controls established by management to mitigate those risks. The Institute of Internal Auditors has set forth the standards for auditors to use in accomplishing that objective Every organization is set up to accomplish its primary business objective. Whether it is a “for-profit” organization or a “not-for-profit” organization, there is always a primary business objective. And whenever there is an objective, there is always the risk that the objective will not be achieved. Management has the responsibility to assess risks and establish controls to ensure that business objectives are achieved.  Internal Audit has the responsibility to evaluate those controls to determine if they are adequate and effective. For the auditor, the process starts with the development of a risk-based annual audit plan to identify the various risk areas. The risk areas are prioritized and subject to audit based on the high-level risk assessment. Each area is further subject to a more detailed review of its particular risks and controls. There are certain Institute of Internal Auditors (IIA) standards that are required in the evaluation and communication of the risk and control assessment. There are also other resources available to auditors to assist them in their evaluation of risks and controls.

• The objective of this webinar is to provide an understanding of:
• Risk and control-related definitions
• Relationship between risks and controls
• Control loop
• Broad risk categories
• Types of controls
• Control limitations
• Management responsibility as it relates to risks and controls
• Internal audit as it relates to risks and controls
• Develop a risk-based annual audit plan
• Conduct preliminary survey
• Determine audit objectives
• Determine audit scope
• Conduct fieldwork
• Communicate the results
• Related IIA Standards
• Exercises to strengthen knowledge
• Case Study

This class is designed to give you the basics for assessing risks and evaluating controls. We will discuss the responsibilities of management and internal audit as it relates to risks and controls. We will do a case study to follow the process from beginning to end. We will also do some exercises to further strengthen your knowledge.

• Chief Audit Executives
• Audit Directors
• Audit Supervisors
• Audit Managers
• Staff Auditors
• Government Auditors
• Compliance Auditors
• Internal Control Specialists
• Public Accountants
• Accounting Analysts
• Business Analysts
• Quality Control Specialists

Jonnie Keith has been in auditing for over 50 years. He retired in 2012 as the Assistant General Manager (AGM) of Internal Audit with the Metropolitan Atlanta Rapid Transit Authority (MARTA) in Atlanta, Ga. He served in that capacity for over 10 years and was responsible for administering the overall audit activities. In this position, he was also responsible for the review and approval of all internal audit correspondence including audit reports, executive summaries, internal and external correspondence, etc.

Prior to that, he worked at MARTA as the Operational Audit Manager and Senior Contract Compliance Auditor. He also worked at Norfolk Southern Railway (formerly Southern Railway) as a senior operational auditor and started his career at the Federal Reserve Bank of Atlanta as a bank examiner.

Jonnie Keith received a BA degree in Economics from Clark Atlanta University (formerly Clark College). His certifications include:

• Certified Internal Auditor (CIA)
• Certified Fraud Examiner (CFE)
• Certified Government Auditing Professional (CGAP)
• Certified Internal Control Auditor (CICA)

He has been a volunteer seminar instructor for the National Office of the Institute of Internal Auditors for several years.