Table of Contents
Preface xi
Chapter 1 Introduction 1
Accounting and Auditing Scandals and Internal Audit 1
What are the New Rules? 3
Who will Find this Book Useful? 7
Chapter 2 Internal Audit and the Sarbanes-Oxley Act 9
“Where were the Auditors?” Standards Failure 10
Sarbanes-Oxley Overview: Key Internal Audit Concerns 12
Impact of the Sarbanes-Oxley Act on the Modern 57
Internal Auditor
Chapter 3 Heightened Responsibilities for Audit Committees 59
Audit Committee Charters and Other Requirements 60
Board’s “Financial Expert” and Internal Audit 64
Helping to Establish Documentation Procedures 67
Controlling Other Audit Services 69
Establishing Open Communications 70
Chapter 4 Launching an Ethics and Whistleblower Program 71
Launching an Organization Ethics Program 72
Establishing a Mission or Values Statement 79
Codes of Conduct 81
Whistleblower and Hotline Functions 89
Auditing the Organization’s Ethics Functions 99
Chapter 5 COSO, Section 404, and Control Self-Assessments 103
SOA Section 404 104
COSO Internal Control Framework 123
Violation Penalties: Organizational Sentencing Guidelines 146
Control Self-Assessments 155
Chapter 6 IIA, CobiT, and Other Professional Internal Audit Standards 165
Institute of Internal Auditors Standards for Professional Practice 165
CobiT and Information Technology Governance 175
ASQ Audit Standards: A Different Approach 183
Chapter 7 Disaster Recovery and Continuity Planning after 9/11 189
Business Continuity Planning and the New Language of Recovery Planning 190
Continuity Planning and Service-Level Agreements 194
New Technologies: Critical Data Mirroring Techniques 195
Establishing Effective Contingency Policies: What are we Protecting? 197
Building the Disaster Planning Business Continuity Plan 198
Testing, Maintaining, and Auditing the Continuity Plan 206
Continuity Planning Going Forward 211
Chapter 8 Internal Audit Fraud Detection and Prevention 213
Red Flags: Fraud Detection for Auditors 214
Public Accounting’s New Role in Fraud Detection 220
IIA Standards for Detecting and Investigating Fraud 223
Fraud Investigations for Internal Auditors 225
Information Systems Fraud Prevention Processes 226
Chapter 9 Enterprise Risk Management, Privacy, and Other Legislative Initiatives 231
Enterprise Risk Management 231
Concurrent with SOA: Other Legislation Impacting Internal Auditors 243
Chapter 10 Rules and Procedures for Internal Auditors Worldwide 257
SOA International Requirements 258
International Accounting and Auditing Standards 259
COSO Worldwide: International Internal Control Frameworks 267
ISO and the Standards Registration Process 272
ITIL Service Support and Service Delivery Best Practices 279
Chapter 11 Continuous Assurance Auditing Future Directions 293
Implementing Continuous Assurance Auditing 294
Internet-Based Extensible Mark-Up Languages: XBRL 302
Data Warehouses, Data Mining, and OLAP 306
Newer Technologies, the Continuous Close, and SOA 311
Chapter 12 Summary: Internal Auditing Going Forward 313
Future Prospects for Internal Auditors 313
Glossary 317
Index 321
