30172 - INTERNAL AUDITING

Learning outcomes

The course aims to present the general principles and the logical nature in structuring control systems within organizations, regarding in particular the Internal Audit activity.

The Internal Auditing arises as a critical activity in mature companies. That’s why the course aims to provide plenty theoretical support and empirical insights designed to guide students to the themes of the complex relationship among business, economy and legality.

The precondition for building/adjustment of Internal Auditing in companies is the adequacy and compliance with the wishes of the stokeholders and the top management. In other words, it acts as a defense against potential malpractice caused to the company, being able to benefit of one of its features, that is the “independence and impartiality” of the Audit function which is in direct support to top management.

Internal Auditing case studies will be provided and illustrated in the course.

Course contents

Managerial Auditing

• Internal Auditing.

• External Auditing.

• Analysis and evaluation of the environmental framework: the general environment, market and competition.

• Analysis and assessment of the overall business profile.

• Analysis and assessment of the significant features of entrepreneurship.

• Analysis and evaluation of management control: organizational structure and operational mechanisms.

• Analysis and evaluation of information systems for management control: the technical, accounting and financial instruments used, the information effectiveness.

• Analysis and discussion about some managerial Auditing case studies.

Internal Auditing

• The Internal Auditing: functional context and requirements; possible types; the establishment of the Internal Audit function; Internal Audit and the building of a of an Internal control system.

• Internal Auditing in Corporate Governance.

• Risk management and Internal control.

• Internal Auditing: organization, targets, activities and performance.

• Internal Auditing techniques:

  • Auditing and control in the procurement cycle;

  • Auditing and control in the investment cycle;

  • Auditing and control in sales and customers;

  • Auditing and control of cash;

  • Auditing and control in stocks and warehouse;

• Possible arrangements for Internal Audit in corporate groups;

• Internal and External Audit and EDP systems.

Monographic part

• Recovery and renewal strategies for companies in financial and economic distress and the related turnaround planning;

• Planning and control systems to support projects in turnaround management: the Audit function role.

Readings/Bibliography

Textbooks: (any alternative book has to be agreed with the teacher)

1. Paletta A., Il controllo interno nella corporate governance, Il Mulino, Bologna, 2008.

2. Zanigni M., Assetti di corporate governance ed implicazioni sul sistema di controllo interno, CEDAM, Padova, 2004..

3. Troina G. (a cura di), Le Revisioni Aziendali, Franco Angeli Milano, 2005.

4. Dittmeier C.A., Internal Auditing, Egea, Milano, 2007.

Teaching methods

Lectures.

Assessment methods

A written examination is required. A next oral examination is optional, to be held on the same day or no later than one year from the date of the written examination, whether the vote (of the written exam) would not be satisfactory for the student.

Teaching tools

E-learning platform.

Office hours

See the website of Massimiliano Zanigni