DRAFT FOR DISCUSSION
Business Process Design and Internal Audit
UNIVERSITY OF TEXAS AT DALLAS
Instructor: Mark Salamasick, CIA, CISA, CSP
Course Number: MAS 6v10-501
Semester Hours: 3
Location: SOM 2.903
Time: Thursday, 7:00-9:45 p.m.
Office Phone: (972) 867-9480
Email Address: Mark.Salamasick@utdallas.edu
Audit Program: http://citm.utdallas.edu/eiap
Homepage URL: http://www.utdallas.edu/~msalam
The course will cover internal audit from a broad perspective that includes information technology, business processes, and
accounting systems. Topics include internal auditing standards, risk assessment, governance, ethics, audit techniques, and
emerging issues. The course covers the design of business processes and the implementation of key control concepts and will
use a case study approach that addresses tactical, strategic, systems, and operational areas. Improvement in effectiveness and
efficiency will be covered in the areas of operations, finance and technology. The course is open to all majors with an interest
in the design and testing of controls for improving management processes. This is the first course leading to Endorsed Internal
Audit Certificate and will prepare students to sit for the Certified Internal Auditor Exam.
- The prerequisite for the class is that you have an undergraduate degree or be in the last 15 hours of
the degree program.
- The other prerequisite for the class is that you have a strong desire to learn about Internal Audit.
You should also have a strong interest in completing a twelve credit hour program in Internal Audit
and passing the Certified Internal Auditor exam.
Business Process Design and Internal Audit 2
The Goal, A Process of Ongoing Improvement, Second Revised Edition, Eliyahu M. Goldratt and
Jeff Cox, 1992.
CIA Review Materials, Gleim (4 Parts) . 10th Edition is the current Edition.
.The Certified Internal Auditor – Model Exam 2002. Published by the Institute of Internal Auditors.
Access to the Protiviti website. You will be provided an ID and password to this site.
Student Membership in IIA International which is available for $30. See www.theiia.org.
Understand the different roles of the internal auditor.
Current understanding of internal audit standards, guidelines, and emerging issues such as COSO and
Develop knowledge of Internal Audit and assurance services terms and procedures, including an
awareness of advanced internal auditing information processing concepts.
Develop knowledge of business design practices and internal control frameworks including COSO.
Become familiar with sources for Internal Audit
Preparation for the Certified Internal Auditor Exam.
Utilize the Internet as a research and communication tool for internal audit.
Network with Internal Auditors in the DFW area.
Learn the controls and key questions to ask concerning the control techniques and the business
Learn the concepts of efficient and effectively controlled environments. Also, be able to explain why
these controls are necessary and if there are any compensating controls explain why the controls may
not be necessary.
Be able to adapt an audit checklist and audit program to various internal audit environments.
Develop skills necessary to be able to perform an internal audit and prepare an internal audit report.
Be able to describe some of the common features of audit software and be able to describe scenarios
where to integrate into the audit practice.
Learn those areas of business risk and well-designed internal control systems. .
Understand how to adapt audit coverage in various industries and emerging audit issues. .
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All assignments should be completed and turned in on time. A number of assignments will require you
to prepare the assignment in PowerPoint and make a short presentation in class. Most of these
assignments will be due the Wednesday before class.
Notify the instructor in advance, if possible, if you cannot attend class. Class attendance is extremely
important since many of the topics and guest speakers are unique to the class discussion.
We will make use of WebCT for posting assignments and Case Study material. Also, discussion
in class is the best way to learn as many of you bring varied backgrounds that can add different
views to the class.
The course will have numerous handouts and case studies that will be used to stimulate class
discussion. It is your responsibility to obtain all handouts if class periods are missed. All
handouts and discussions are potential exam questions. Numerous presentations will be used to
compliment the course with current material.
The class will have a series of Quizzes that are similar to the CIA Exam. These will be given
throughout the semester to test your preparedness for the actual exam. Time in class will only be
for question and answer as related to the review material. Students will be expected to study and
learn the exam material outside of class and be prepared with any questions during the class.
Early morning times will be established for review sessions if students wish to have such review
Business Process Design and Internal Audit 4
Your grade will consist of the following:
4 CIA Review Quizzes 400
Case Studies 200
Class Assignments and Class Participation 200
Total Points 800
Class Portal and Current Topics:
A number of websites will be valuable resources during the course of the semester. All students will
have free access to the subscription service of the Protiviti KnowLeader site. Our class will be one of
the first to have this integrated into the curriculm. This will allow us to be very current on our topical
coverage along with indexed links to numerous other sources. You will have an id and password that is
issued for use during this class. Current topics from the site will be discussed during the class.
Dallas Chapter of the Institute of Internal Auditors
The local IIA Chapter has monthly meetings beginning in September. Three meetings are held during
the fall semester and you are strongly encouraged to attend. Dates and topics are being finalized and will
either be on Tuesday or Thursday. The tentative dates are set at September 23, October 21, and
November 20. You are invited to attend the luncheon meetings from the Dallas Chapter of the IIA at a
reduced rate. These meetings offer you an opportunity to network with audit professionals, hear great
speakers, and learn more what is going on in the Dallas area. The local chapter
http://www.dallasiiia.org/ has more than 1,000 members and is one of the only platinum chapters in the
world. In addition the Information Audit and Control Association meetings(http://www.isacantx.org/)
are at reduced student rates. Meetings are typically on Thursday at lunch. This association has over 500
local members. The national IIA site is www.theiia.org and national ISACA site is www.isacantx.org.
Business Process Design and Internal Audit 5
IIA Student Chapter
During the fall semester of 2003 a student chapter of the IIA will be formed at the University.
Participation in the chapter is recommended. The kickoff for the chapter is planned to August 28 at
6:00. Individuals can participate in the Student Chapter and not the class. Special events will be
planned by the Chapter along with opportunities to build the new Endorsed Internal Audit Program.
This will be a great opportunity for those wanting to get full time employment, internships, learn more
about the program, network with many companies throughout the country along with IIA International.
The student chapter will take on key projects including working with firms in building integrated
automated workpaper case studies.
Endorsed Internal Audit Program:
This course along with other requirements will lead to a Endorsed Internal Audit Certificate from IIA
International. Details of those requirements are given on the webiste citm.utdallas.edu/eiap. You must
have on file an application for the program along with acceptance of the faculty advisor to be considered
part of the program. This endorsement is highly recognized in the business community and the criteria
for the UTD program is established to ensure a high degree of credibility.
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The class schedule is subject to change, based on the needs of the students. We will have many guest
speakers for the class in addition many case studies to cover. Changes to the class will be discussed as
the need arises.
Week Date Topic Quiz/Case
1 August 21, 2003 Introduction
Overview of the Audit Process
2 August 28, 2003 COSO Model and Framework Assignment #1
Course Resources Overview-www.theiia.org
www.protiviti.com- Someone for Protiviti
3 September 4, 2003 LSU Endorsed Internal Audit Program Case Study 1
Internal Audit Standards
CIA Exam Overview – Glenn Sumners
4 September 11, Sarbanes Oxley and Emerging Issues-Public Assignment #2
2003 Accounting Firm or Protiviti
5 September 18, Business Process Design Discussion –JC Part I
2003 Penny-Completed Reading of The Goal
6 September 25, Fraud Case Study 2
7 October 2, 2003 Internal Audit Skills-Types of Engagements, Assignment #3
8 October 9, 2003 Ethics Part II
9 October 16, 2003 Risk Assessment Process and Audit Planning Case Study 3
10 October 23, 2003 Audit Software and CAATS - Integration into Case Study 4
the audit process
11 October 30, 2003 Audit Programs and Audit Workpapers Part III
12 November 6, 2003 Control Self Assessment and The Audit Role Case Study 5
13 November 13, Corporate Governance Assignment #4
14 November 20, Enterprise Risk Management Case Study 6
N/A November 27, Thanksgiving
15 December 4, 2003 Class Wrap Up, Discussion Part IV