Course Information

Audit Fundamentals Course is a comprehensive 2-day training program designed for government auditing professionals. This course offers an in-depth exploration of the foundational principles and practices essential to effective government auditing. Participants will engage in interactive lectures, practical exercises, and real-world case studies to master the skills needed for planning, conducting, and reporting audits in a government setting. Topics covered include audit planning and risk assessment, internal controls evaluation, evidence gathering techniques, audit documentation, reporting, communication, and emerging trends in government auditing.

Upon completion of this course, participants will be able to:

• Understand the fundamental principles and objectives of government auditing.

• Apply regulatory requirements and professional standards in auditing practices.

• Conduct effective audit planning and risk assessments tailored to government audits.

• Evaluate internal controls and gather reliable audit evidence using various techniques.

• Utilize analytical procedures and audit sampling methods to enhance audit accuracy.

• Maintain comprehensive and organized audit documentation.

• Write clear, concise audit reports and effectively communicate audit findings.

• Implement follow-up procedures to ensure the effectiveness of audit recommendations.

• Stay abreast of emerging trends and advancements in government auditing.

• Foster a commitment to continuous professional development and excellence in auditing.

This audit fundamentals training program is meticulously curated to address the unique challenges faced by government audit professionals within the regulatory framework of the State of Texas. Specifically designed to empower auditors with the essential skills and knowledge required for conducting thorough and effective audits, this training initiative will equip participants with the tools necessary to navigate the audit landscape with confidence and proficiency.

Introduction to Auditing

Session 1: Overview of Government Auditing

•        Definition and purpose of auditing in the public sector

•        Types of audits: financial, compliance, performance, and operational audits

•        Key principles and ethics in auditing.

Session 2: Regulatory Framework and Standards

•        Understanding GAO Yellow Book and other relevant standards

•        Texas State Auditor's Office guidelines

•        Legal and regulatory requirements.

Session 3: The Audit Process

•        Phases of an audit: planning, execution, reporting, and follow-up

•        Roles and responsibilities of auditors

•        Audit lifecycle and documentation.

Session 4: Audit Planning and Risk Assessment

•        Importance of audit planning

•        Conducting risk assessments

•        Developing audit objectives and scope.

Internal Controls and Evidence Gathering

Session 1: Understanding Internal Controls

•        Definition and components of internal controls

•        Evaluating the effectiveness of internal controls

•        Role of internal controls in auditing

Session 2: Techniques for Gathering Audit Evidence

•        Types of audit evidence: physical, documentary, analytical, and testimonial

•        Methods for collecting evidence: inspections, observations, inquiries, and confirmations.

•        Ensuring reliability and validity of evidence.

Session 3: Analytical Procedures and Techniques

•        Using analytical procedures in auditing

•        Ratio analysis, trend analysis, and reasonableness testing

•        Data analytics in government auditing.

Session 4: Audit Sampling

•        Purpose and methods of audit sampling

•        Statistical vs. non-statistical sampling

•        Determining sample size and evaluating results.

Fieldwork and Documentation

Session 1: Conducting Fieldwork

•        Preparing for fieldwork

•        Gathering and documenting audit evidence

•        Communicating with participants

Session 2: Audit Documentation

•        Importance of proper documentation

•        Types of audit documentation: checklists, and memos

•        Best practices for maintaining audit documentation

Session 3: Evaluating Audit Evidence

•        Assessing the sufficiency and appropriateness of evidence

•        Analyzing findings and drawing conclusions

•        Identifying exceptions and anomalies

Session 4: Case Study: Conducting Fieldwork

•        Practical exercise: conducting fieldwork on a sample audit case.

•        Group discussion and feedback.

Reporting and Communication

Session 1: Writing Audit Reports

•        Structure and components of an audit report.

•        Writing clear and concise audit findings

•        Recommendations and corrective actions.

Session 2: Communicating Audit Results

•        Effective communication techniques

•        Presenting audit findings to stakeholders

•        Handling challenging conversations

Session 3: Follow-Up and Monitoring

•        Importance of follow-up in the audit process

•        Tracking the implementation of audit recommendations

Continuous improvement in audit practices

Session 4: Case Study: Reporting and Communication

•        Practical exercise: drafting an audit report.

•        Group presentations and peer feedback.

Advanced Topics and Continuous Improvement

Session 1: Emerging Trends in Government Auditing

•        Current trends and developments in auditing

•        Impact of technology on auditing practices

•        Cybersecurity considerations in audits

Session 2: Performance Auditing

•        Principles and objectives of performance audits

•        Evaluating efficiency, effectiveness, and economy

•        Case studies in performance auditing.

Session 3: Fraud Detection and Prevention

•        Identifying and assessing fraud risks

•        Techniques for detecting fraud.

•        Implementing fraud prevention measures

Session 4: Continuous Professional Development

•        Importance of ongoing learning and development

•        Professional certifications and training opportunities

•        Building a career in government auditing.

Prerequisite not required.