Internal Audit Module

INTERNAL AUDIT
TRAINING MODULE
BASED ON THE INTERNAL AUDIT PROCEDURE MANUAL

Ministry of Finance & Economic Development November 2005

TABLE OF CONTENT

MODULE I
I. INTRODUCTION AND GENERAL BACKGROUND
SESSION I
INTRODUCTION BREAKING THE ICE LEARNING CONTRACT BASES AND AUTHORITY THE GENERAL CONCEPT OF AUDITING 1 1 1 2 3

SESSION II
HISTORICAL DEVELOPMENT OF INTERNAL AUDITING INTERNAL AUDITING IN ETHIOPIA THE SCOPE AND PRACTICE OF INTERNAL AUDITING IN ETHIOPIA NEED TO ADOPT THE PROFESSIONAL FRAMEWORK OF THE INSTITUTE OF INTERNAL AUDITORS (IIA) 9 4 6 8

SESSION III
THE PROFESSIONAL PRACTICE FRAMEWORK THE MODERN DEFINITION OF INTERNAL AUDITING 11 12

MODULE II
II.

INTERNAL AUDITING STANDARDS OF PUBLIC BODIES OF THE GOVERNMENT OF ETHIOPIA
SESSION IV
INTRODUCTION TO THE STANDARDS AND THE ATTRIBUTE STANDARDS 16

I

MODULE III
III. THE PERFORMANCE STANDARDS AND THE PROFESSIONAL CODE OF ETHICS
SESSION V
PERFORMANCE STANDARDS 42

SESSION VI
REPORTING STANDARDS 77

SESSION VII
CODE OF ETHICS 88

MODULE IV
IV. INTERNAL CONTROL SYSTEM
SESSION VIII
INTERNAL CONTROL SYSTEM 93

SESSION IX
EVALUATING INTERNAL CONTROLS 114

SESSION X
AUDIT APPROACHES 132

SESSION XI
PLANNING AND CONTROLLING INTERNAL AUDIT 155

SESSION XII
PERFORMING THE AUDIT 173

SESSION XIII
DOCUMENTING INTERNAL AUDIT 184

SESSION XIV
REPORTING AUDIT FINDINGS 203

II

MODULE V
V. PROCEDURAL GUIDANCE ON FINANCIAL AUDITS
SUBSTANTIVE TEST PROCEDURES 216

SESSION XV
INTRODUCTION THE FEDERAL GOVERNMENT OF ETHIOPIA ACCOUNTING SYSTEM 216 217

SESSION XVI
RECEIPTS (REVENUE) 221

SESSION XVII
EXPENDITURES 228

SESSION XVIII
TRANSFERS 241

SESSION XIX
RECEIVABLES 248

SESSION XX
PAYABLES 253

SESSION XXI
LETTER OF CREDIT NET ASSETS EQUITY 260 262

SESSION XXII
CASH ON HAND AND CASH AT BANK 264

TEST OF INTERNAL CONTROL SESSION XXIII
RECEIPTS 284

III

SESSION XXIV
PROCUREMENT 295

SESSION XXV
PAYROLL 309

SESSION XXVI