Materiale Curs Auditori Executie

13.04.
2018
Training program
for internal auditors
Markus Erlmoser, MA, MBA
Erwin Voit, BA
Time schedule
§ 09:00 – 10:30 Unit 1

§ 10:30 – 11:00 Coffee break
§ 11:00 – 12:30 Unit 2
§ 12:30 – 14:00 Lunch break
§ 14:00 – 16:00 Unit 3
2 SRSS/S2017/032 – Support to improving the coordination of internal audit in Romania Component II – Training program for internal auditors
1
13.04.2018
Agenda
§ Introduction
§ Self Introduction (Trainer & Auditors)
§ Internal Audit Unit (MoF in Austria)
§ Annual audit plan
§ Audit procedures
§ Audit preparation & documentation
§ Qualitative audit methods
§ Quantitative audit methods
Agenda
§ Introduction
§ Audit procedures
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13.04.2018
Self introduction (Trainer)
§ Mag. Dr. Andreas Berger, MBA

§ Customs auditor (10 years)
§ Team leader internal audit unit MoF (7 years)
§ Expert responsible for budget of education science & research (3
years)
§ CAE at ministry of education science & research (5 years)
§ Phd in political science; University of Vienna
§ Master of Business Administration in Public Auditing; University of
Economics and Business - Executive Academy, Vienna
§ Markus Erlmoser, MA, MBA

§ Tax inspector at tax office
§ Auditor since 2004
§ Team leader since 2017
§ Master in Public Management; University of applied science, Vienna
§ Master of Business Administration in Public Auditing; University of
Economics and Business - Executive Academy, Vienna
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13.04.2018
§ Erwin Voit, BA
§ Tax inspector at tax office
§ Auditor since 2005
§ Bachelor in Public Management; University of applied
science, Vienna
Self introduction (Auditors)
§ organisation
§ audit experience
§ expectation for this work shop
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13.04.2018
Agenda
§ Introduction
§ Audit procedures
Internal Audit Unit (MoF in Austria)
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13.04.2018
Internal Audit Unit (MoF in Austria)
§ Permanent organisation
§ Chief audit executive (CAE)
§ Office
§ Team leader
§ Pool of experts
§ Temporary organisation
§ Changing teams
§ Auditors (f.e. A,B) are specialists
§ Applied to their skills
§ Beginning an End of the audit are fixed
Agenda
§ Introduction
§ Audit procedures
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13.04.2018
Annual audit plan
§ First Approach: Risk Map

financial risk complexity
cluster 1 cluster 2 cluster n
risk evaluation
audit plan
Annual audit plan

500.000
450.000
§ Financial Risks
400.000
350.000
300.000
Administrative
250.000
200.000
150.000
Costs
100.000
50.000
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13.04.2018
Annual audit plan

18.000.000
16.000.000
§ Financial Risks 14.000.000
12.000.000
10.000.000
Revenues
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6.000.000
4.000.000
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Annual audit plan
§ 3 audits per team and year

§ Selection criteria: RISK-ORIENTATION, considering also
§ Proposals of the minister and his cabinet
§ Proposals of the secretary general, general directors and deputy general
directors
§ Cases from fraud audit with relevance to internal control systems
§ Results of the central risk-management
§ Date of the previous audit of the entity
§ Other audits (esp. supreme audit court)
8
13.04.2018
Annual audit plan
§ Important issues
§ Corporate Governance
§ Risk management
§ Internal control systems
§ Regularity
§ Cooperation between (main) entities, esp. general directorates
§ Complex systems
§ New procedures
§ Special (rare) competencies
§ Research of important issues not observed till now
Annual audit plan
§ Structure
§ Audit plan, in general
§ Current audit plan
§ Audit issues in principle
§ Proposals & (no)acceptance
§ Audit cases
§ Every single case
§ Clustered to main topics
§ Time schedule
§ Signature of the minister
§ Annexes
§ Audit issues of the recent 3 years
§ Table when the offices had been audited last time
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13.04.2018
Audit plan 2014
§ Strategy, long term perspectives

§ Long term instruments for HR- and organizational management
§ Staff administration processes of subordinated offices
§ IT-instruments for combatting fraud
§ Advance ruling and horizontal monitoring
• Management and steering

§ Finance Police – internal organisation
§ Finance Police – effects and results in tax offices
§ Self-indictments
§ Tax office Waldviertel
§ Management of outstanding money
Audit plan 2014
§ Quality and effects

§ Quality assurance in the whole tax administration
§ Project management of a big IT-project
§ Prolongation of due tax declarations
§ In-field-controls of consumption taxes
§ Administration of taxes on waste
§ Information Centre Vienna
§ External Audits
§ Joint audits with EC
§ Certifications
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13.04.2018
Agenda
§ Introduction
§ Audit procedures
Audit procedures
§ Beginning
Brief introduction,
“What” or “Why”
Engagement letter,
“focus of the audit”
Entity to be audited,
Audit resources, duration
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13.04.2018
Audit procedures
preparation fact finding & evaluation & reporting

critical interpretation recommendation
· Selection of the main • Analysis of data and • Evaluation of results · Draft report about facts,
audit issues documents · Benchmark of results of analysis,
· Draft of the audit • Making interviews indicators evaluation,
concept • Other fact finding · Show fields of recommendations and
· Introduction of the measures and analysis improvements agreements
audit concept to the • First critical · Sharpen up · Mailing the draft to the
auditee interpretation recommendations auditee
• Check the time table · Record of the results in · Design the concept of · Final report after the
and the audit concept detail the closing discussion statements to the draft
with the auditee · Information of the head · Closing discussion · Mailing the final report to
· Check what is needed of the audited unit · (agreements included) the minister
for daily work about the facts found
· Look at first documents
· Improve the audit
concept in detail
Audit procedures
Main issues
§ As part of the
audit documentation
§ 3-5 main questions
§ Leading to evaluations
§ Not to descriptions
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13.04.2018
Audit procedures
§ Start up paper
Support needed
Audit issues
Time schedule
Audit procedures
Brief information
Cover on Internal audit
Audit procedures
Customer Orientation
1. Organization : to add value
2. Audited unites :
§ first information about planned audit
§ start up meeting
§ feedback during the visit when making interviews
§ information of the head of the audited unit at the end of the visit
§ information in written before closing discussion
§ closing discussion
§ draft report
§ final report
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13.04.2018
Audit procedures
Periodic reporting lines

§ Quarterly Report
§ Minister
§ Secretary General
§ Annual Report
§ Minister
§ Secretary general
§ all directors general
§ all heads of department
§ all directors involved in that year
§ Commissioner against corruption
§ Supreme audit court
Audit procedures
Audit Report
§ Cover &
§ distribution list
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13.04.2018
Audit procedures
Audit Report
§ connection to What ?
audit plan Where and

when ?
§ audit procedure
Final meeting,
when and
participants
Audit procedures
Audit Report Audit target
§ audit target
§ audit methods
used
Audit methods used
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13.04.2018
Audit procedures
Audit Report
Teaser
§ Management
Headline of
Summary paragraph
Paragraph
Audit procedures
Audit Report Findings
§ Text structure
Evaluation
Recommendations
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13.04.2018
Audit procedures
Audit Report
§ graphs (examples)
Audit procedures
Audit Report
§ graphs (examples)
F-Mehrerg
140.000
120.000
100.000
80.000
60.000
40.000
20.000
0
0 5 10 15 20 25 30 35 40
-20.000
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13.04.2018
Agenda
§ Introduction
§ Audit procedures
Audit preparation & documentation
Structure
1. Contact data 10. Audit methods (incl. lessons
2. Engagement letter learnt)
3. Analyses of environment 11. Documentation on received
4. Analyses of relationships documents/files
5. Links to other (former) 12. Notes on procedures
audits 13. Notes on archive
6. Audit issues (mind map) 14. Milestones for audit procedures
7. Audit issues (main 15. Consumed resources
questions) 16. Covenants
8. Working packages
9. Diagram of cooperation
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13.04.2018
General part
Engagement letter
Contact data
Table of
Versions Contents
Cover
Analyses
of the
audit
environment
Analyses of environment
Analyses of relationships
Links to other (former) audits

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13.04.2018
Audit issues
Audit issues (mind map) Audit issues (main questions)
Audit planning
Working packages Diagram of cooperation
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13.04.2018
Audit methods
& notes
Notes on procedures
Documentation on Notes on archive

received documents
Audit methods
Milestones,
input &
results
Milestones for
audit procedures
Consumed
resources
Covenants
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13.04.2018
Workshop Audit preparation

§ Build 5 Groups á 4 Persons
§ Find a topic and an engagement letter from your
environment (maybe from the past)
§ Analysis and planning of an audit based on the given
structure
§ Time: 1,5 hours
Agenda
§ Introduction
§ Audit procedures
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13.04.2018
Qualitative audit methods
Overview
§ Narrative interview
§ Interview guide – expert interview
§ Group interview
§ Qualitative data analysis (MaxQDA)
Narrative interview
§ Opening of the conversation with an initial question
§ Initial question should stimulate the interview partner to
tell a story
§ Suitable for a first information acquisition
§ Useful at the preparation of the audit (approach the topic)
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13.04.2018
Narrative interview
§ Phases of the interview
1. Declaration phase: The interviewer explains the interviewee that it is not a
question-answer interview, and when the interviewee is talking the interviewer will
listen him carefully.
2. Introduction: The interviewer explains which aspect interests him in particular.
3. Record phase: The interviewee tells the story until he ends the story by himself.
4. Question phase: If something has remained unclear, the interviewer can ask
now.
5. Balancing: Interviewer and interviewee can talk about the course of the
interview.
§ Narrative interview
§ Examples for initial question
“You came to the department from another organizational unit. Can you still
remember how the first days in the department were? What have you done?
How did you feel?”
“We are interested in work processes related to education. You are the head of
the personnel development department. What are the considerations in your
department for training employees? How are the work processes regulated and
where do you see possibilities for improvement?”
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13.04.2018
Interview guide - expert interview

§ Interviewee has specific and professional knowledge
§ Partially standardized interview
§ Questions about central topics
§ No answer requirements
§ Orientation for the interviewer and to check if all aspects have
been asked
§ Guide is handled variably in the interview

§ Rules for creating a guide
§ Information on the topic
§ Promise of anonymity
§ Metadata (location, time, duration, ...)
§ Main and sub-questions
§ Derived from audit issues
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13.04.2018

§ Rules for questions
§ No questions about theoretical categories
§ Questions about concrete facts of the interviewed person
§ Short and understandable questions, no long questions
§ Open questions, no closed questions (f.e. yes / no)
§ Suggestive question
§ Targeted demand

§ Example
§ Audit of a
management
function
§ starting point at
audit issues
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13.04.2018

§ Example

§ Workshop
§ Go back to your group
§ Take your audit preparation from the last workshop
§ Discuss which issues can be answered with open questions
§ Design a interview guide from the issues
§ Time: 1 hour
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13.04.2018
Group interview
§ Maybe group interview instead of single interview (economic reasons)
§ Focused interviews with small groups of (max. 6-8) people to one certain
topic
§ Performing like a guided interview
§ It is important to ensure that not individual interviewees dominate the group
§ Encouraging reserved members
§ Try to get answers from the whole group
§ Balance between (directive) control of the group and its (non-directive)
moderation
§ Qualitative data analysis (MaxQDA)
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Agenda
§ Introduction
§ Audit procedures
Quantitative audit methods
Overview
§ Online survey
§ Descriptive statistics
§ Tag clouds
§ Scenario analysis
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13.04.2018
Online survey
§ Suitable to interview many different people in an audit
§ Asks for connections between different aspects of a topic
§ May show a new context
§ Representative statements are possible
§ Specific knowledge required
§ Answer options are limited
Online survey
§ Rules for online surveys and questions
§ Define the target group of the survey
§ Information on the topic
§ Promise of anonymity
§ Contact information for inquiries
§ Answer should not take more than 20 minutes
§ Order of questions should be according to issues
§ Closed and rating questions are useful
§ Avoiding open questions
§ Pretesting the survey
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13.04.2018
Online survey
§ Example –
Start page
https://www.soscisurvey.de/
Online survey
§ Workshop
§ Start the internet browser and open the page:
https://www.soscisurvey.de/
§ Create an account for your group
§ Design a survey following the instructor
§ Time: 1,5 hour
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13.04.2018
Descriptive statistics
§ describes or summarizes features of a collection of
information
§ especially useful for extensive data
§ find previously unknown structures and relationships
§ generate new hypotheses
Main Methods
§ Tables
§ Charts
§ Parameters
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13.04.2018
Descriptive statistics – Sample Chart

§ Concentration
of corrected
tax assessments
§ Workshop
§ Start the Microsoft Excel an open the file
“Example_descriptive statistic (scatterplot).xlsx”
§ Following the instructions from the trainer
§ Time: 1,5 hour
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Tag Clouds
§ Method for information visualization
§ individual words are weighted differently depending
on frequency
§ Useful for displaying a lot of free text
§ Tools also suitable for creating word frequency lists
Tag Clouds - Sample
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13.04.2018
Tag Clouds
§ Workshop text analysis with a tag clouds
§ Start your internet browser an open the site
www.wordle.net
§ Time: 0,5 hour
Scenario analysis
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13.04.2018
Scenario analysis
§ Simulates alternative environmental scenarios in
which the organisation can be located
§ Scenarios are a description of possible future
situations
§ Each of the scenarios allows for different conclusions
and development opportunities
Scenario analysis - sequences

Analysis
§ Analysis of the internal situation
§ Definition of the concrete area of the scenario analysis
§ Consideration of external spheres of influence
§ Determination of influencing factors
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13.04.2018

Trend projections
§ Formulate measures to describe the environment
§ identify trends
§ Description of the current & future state of influence factors
§ Collection of possible internal and external disruption events

Evaluation
§ Verification of the consistency and logic of the alternatives
§ Evaluate the scenario development
§ Conclusion of the consequences
§ Derivation of opportunities and risks and activities based on
them
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Scenario analysis – advantages/disadvantages

advantages disadvantages
• promotes flexibility • sometimes expensive
• Horizon of decision-makers is • sometimes very complex
increased • Error rate increases with
• versatile complexity reduction
• Improvement of planning
methodology
Scenario analysis - Sample

§ Demography
charts with different
recruiting strategies
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13.04.2018
Scenario analysis
§ Workshop demography chart & scenario analysis
§ Start the Microsoft Excel an open the file
“Example_demography_raw_data.xlsx”
§ Time: 1,5 hour
Any questions?
39

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13.04.

§ 09:00 – 10:30 Unit 1

Self introduction (Trainer)

§ Mag. Dr. Andreas Berger, MBA

Self introduction (Trainer)

§ Markus Erlmoser, MA, MBA

Self introduction (Trainer)

Self introduction (Auditors)

Internal Audit Unit (MoF in Austria)

Internal Audit Unit (MoF in Austria)

Annual audit plan

§ First Approach: Risk Map

cluster 1 cluster 2 cluster n

Annual audit plan

Annual audit plan

§ Financial Risks 14.000.000

be r+A run erw ga

Annual audit plan

§ 3 audits per team and year

Annual audit plan

Annual audit plan

Audit plan 2014

§ Strategy, long term perspectives

• Management and steering

Audit plan 2014

§ Quality and effects

preparation fact finding & evaluation & reporting

Periodic reporting lines

audit plan Where and

Audit Report Audit target

Audit Report Findings

Audit preparation & documentation

Audit preparation & documentation

Audit preparation & documentation

Links to other (former) audits

Audit preparation & documentation

Audit issues (mind map) Audit issues (main questions)

Audit preparation & documentation

Working packages Diagram of cooperation

Audit preparation & documentation

Documentation on Notes on archive

Audit preparation & documentation

Audit preparation & documentation

Workshop Audit preparation

Qualitative audit methods

Qualitative audit methods

Qualitative audit methods

Qualitative audit methods

Qualitative audit methods

Interview guide - expert interview

Qualitative audit methods

Interview guide - expert interview

Qualitative audit methods

Interview guide - expert interview

Qualitative audit methods

Interview guide - expert interview

Qualitative audit methods

Interview guide - expert interview

Qualitative audit methods

Interview guide - expert interview

Qualitative audit methods

Qualitative audit methods

§ Qualitative data analysis (MaxQDA)

Quantitative audit methods