Course Information
A Deep Dive Walkthrough on Walkthroughs
Course Description
Conducting a walkthrough is like a fine art. A fine art that has been lost over the years. This course will take attendees through how to conduct a walkthrough, leading practices from audit shops around the world, what questions to ask and how to optimize your time with the client.
Course Objectives
Objectives:
• Learn how to structure and conduct a walkthrough effectively.
• Develop the skill of asking the right questions during a walkthrough + building and enhancing audit interviewing skills.
• Role-play scenarios to practice and enhance auditing skills.
Outline:
I. Introduction to Audit Walkthroughs (30 minutes)
a. Definition, Purpose, and Types
b. Benefits of Walkthroughs
c. Structure of Audit walkthroughs
Definition and Purpose: Explain what an audit walkthrough is and its significance in the audit process.
Types of Walkthroughs: Differentiate between types (e.g., compliance walkthroughs, operational walkthroughs).
Benefits of Walkthroughs: Discuss how walkthroughs help in understanding processes, identifying risks, and validating controls.
II. Structuring an Effective Walkthrough (45 minutes)
a. Components of a good walkthrough: understanding the process flow, key controls, and documentation.
b. Best practices: Preparation, engagement, and documentation.
c. Common pitfalls and how to avoid them.
III. Developing Strong Walkthrough Questions (60 minutes)
a. Open-ended vs. closed-ended questions.
b. Techniques for eliciting meaningful information.
c. Sample questions to uncover control weaknesses, process gaps, and risks.
IV. Understanding Key Audit Principles (30 minutes)
a. Risk Assessment
b. Control Environment
c. Materiality
Risk Assessment: Teach participants how to assess risks associated with the process being audited.
Control Environment: Discuss the importance of understanding the organization's control environment and culture.
Materiality: Explain the concept of materiality in the context of audit procedures and findings.
V. Effective Communication Skills (60 minutes)
a. Listening Techniques and Clarification
b. Non-verbal Communication
Listening Techniques: Highlight active listening and its role in gathering information during interviews.
Clarification and Probing: Teach how to ask clarifying questions to gain deeper insights into processes.
Non-verbal Communication: Discuss the importance of div class="aboutText" language and tone during interviews and discussions.
VI. Documenting the Walkthrough (60 minutes)
a. Documentation Standards and Templates
b. Utilizing Flowcharts
Documentation Standards: Review best practices for documenting the walkthrough process and findings.
Templates and Tools: Provide templates for documenting walkthrough results, including questions asked and answers received.
Utilizing Flowcharts and Diagrams: Teach how to create process flowcharts to visualize the workflow.
VII. Identifying and Evaluating Controls (45 min)
a. Types of Controls and Evaluation Methods
Types of Controls: Discuss preventive, detective, and corrective controls relevant to payroll or other processes.
Control Evaluation: Teach participants how to assess the effectiveness of identified controls and suggest improvements.
VIII. Common Pitfalls and Challenges in Walkthroughs
a. Common Errors and Challenges
b. Navigating Complex Processes
Common Errors: Discuss frequent mistakes made during walkthroughs and how to avoid them.
Challenges in Gaining Cooperation: Provide strategies for overcoming resistance or lack of cooperation from personnel.
Navigating Complex Processes: Offer tips for managing complex workflows and ensuring a comprehensive understanding.
IX. Audit Interviewing (90 minutes)
a. Audit Interviewing Techniques:
1. Prepare in Advance:
o Review the payroll policies, prior audit findings, and flowcharts.
o Develop open-ended and targeted questions for key payroll staff.
2. Establish Trust and Rapport:
o Start with easy questions to make the interviewee feel comfortable, such as asking them to describe their role in the payroll process.
o Show empathy for the complexity of payroll processes, especially if they involve manual steps.
3. Ask Open-Ended Questions:
o Use questions that encourage the interviewee to describe processes and share insights.
o Example: "Can you walk me through how payroll is processed for hourly employees, including how overtime is calculated and approved?"
4. Follow-up on Key Details:
o Probe for areas where controls might not be as strong.
o Example: "How often are manual adjustments made, and who approves them?"
Prerequisites
Prerequisite not required.
YB 4.23 (A)
Instructors
Danny M. Goldberg is a well-known speaker on internal auditing and People-Centric Skills. Danny co-authored People-Centric© Skills: Communication and Interpersonal Skills for Internal Auditors, via Wiley Publications. This is the first book published specifically to address the wide-ranging topic of communication skills for internal auditors. It has been offered through the IIA and ISACA bookstores since July 2015 and has sold over 3,000 copies (through April 2018).
Danny has over 21 years of professional experience, including five years leading/building internal audit functions. Danny was named as one of the Fort Worth Business Press 40 Under 40 for 2014. Danny is also accredited as the Professional Commentator of the Bureau of National Affairs - Internal Audit: Fundamental Principles and Best Practices (Professional Commentator). This book was authored by renowned audit scholars Curtis C. Verschoor and Mort A. Dittenhofer – co-author of Sawyer’s Internal Auditing.
Additional Information
§ TAC Rule 523.142(g) requires the CPE Sponsor to monitor individual attendance and assign the correct number of CPE credits. Participants will be asked to document their time of arrival and departure in compliance with this Rule. Additionally, attendance will be monitored throughout the day and CPE certificates will reflect actual attendance of each participant.
To see answers to our Frequently Asked Questions, visit Texas State Auditor's Office - Professional Development FAQs