AIT810 - Internal Auditing and Controls

Outline info
Last revision date 2016-02-01 00:30:55.914
Last review date 2016-03-21 00:15:06.671

Subject Title
Internal Auditing and Controls

Subject Description
This subject provides students with an understanding of internal auditing practices and philosophies. It includes an overview of internal auditing, the audit process, types of audit applications and auditing standards. Students will learn how to analyze, evaluate and report on controls with an emphasis on how controls can be used to make operations more effective and efficient.

Credit Status
This subject is a required credit in the Accounting and Information Technology program.

Learning Outcomes
Upon successful completion of this subject the student will be able to:

1. Describe internal auditing, its development and its standing as a profession.

2. Contrast various types of controls, discuss systems of control and analyze the characteristics of an acceptable system of control.

3. Describe the techniques used by internal auditors to gather and evaluate information on both control and performance and the criteria used.

4. Discuss how risk is assessed and techniques for mitigating risk.

5. Prepare internal audit reports and describe the reporting process.

6. Discuss the administration of the internal auditing department.

7. Discuss the nature of management and describe common control problems which affect the management and evaluation of operational and staff functions such as production, purchasing, human resources, marketing, treasury and finance.

8. Discuss human relations in auditing and internal auditors' relationships with auditees, external auditors and boards of directors.

9. Discuss and apply the Standards for the Professional Practice of Internal Auditing.

Cheating and Plagiarism
Each student should be aware of the College's policy regarding Cheating and Plagiarism. Seneca's Academic Policy will be strictly enforced.

To support academic honesty at Seneca College, all work submitted by students may be reviewed for authenticity and originality, utilizing software tools and third party services. Please visit the Academic Honesty site on for further information regarding cheating and plagiarism policies and procedures.

All students and employees have the right to study and work in an environment that is free from discrimination and/or harassment. Language or activities that defeat this objective violate the College Policy on Discrimination/Harassment and shall not be tolerated. Information and assistance are available from the Student Conduct Office at

Accommodation for Students with Disabilities
The College will provide reasonable accommodation to students with disabilities in order to promote academic success. If you require accommodation, contact the Counselling and Disabilities Services Office at ext. 22900 to initiate the process for documenting, assessing and implementing your individual accommodation needs.

Students must also meet the Program Eligibility Requirements as stated on the program web page:

Topic Outline

  • Introduction, Role, Management & Ethics
  • Standards, Quality Assurance & Function Management
  • Risk Management
  • Audit Planning
  • Examination: Preparation & Testing
  • Examination: Evaluation, Completion & Fraud
  • Audit Communications
  • Technology & its Impact
  • Line Functions: Marketing & Purchasing
  • Production- Staff Functions: Human Resources
  • Staff Functions: Treasury & Planning
  • Public Sector and Not for Profits

Mode of Instruction
A combination of teaching methods will be utilized which may include lectures, case studies, discussions, group and individual work.

Prescribed Texts

Reference Material
Title: Internal Auditing: Assurance & Consulting Services
Edition: 3 E
Publisher: Institute of Internal Auditors Research Foundation (IIARF)

MU1 Selected Readings, CGA-Canada. 

Required Supplies

Promotion Policy

Grading Policy
A+ 90%  to  100%
A 80%  to  89%
B+ 75%  to  79%
B 70%  to  74%
C+ 65%  to  69%
C 60%  to  64%
D+ 55%  to  59%
D 50%  to  54%
F 0%    to  49% (Not a Pass)
EXC Excellent
SAT Satisfactory
UNSAT Unsatisfactory

For further information, see a copy of the Academic Policy, available online ( or at Seneca's Registrar's Offices.

Modes of Evaluation
Assignments are due on the dates specified. Should extenuating circumstances arise, please contact your instructor immediately, prior to when your assignment is due, so an appropriate course of action can be established. Late assignments may be subject to a penalty of up to 10% per week and will not generally be accepted beyond two weeks after the assignment due date.

In cases of cheating or plagiarism, the College Academic Policy will prevail.  Please ensure that all assignments and reports are properly documented.

Students are referred to the following web site for the Seneca College Library MLA Style Guides, Academic Honesty Policy and Copyright guidelines:  


Dates for evaluations are specified in the weekly schedule addendum to this outline. The evaluation process may include, but is not limited to, tests, exams, assignments or presentations. Any absences or missed submissions due to medical or other reasons must be supported by medical or other appropriate documentation within one (1) week of the due date. The faculty and program area must be notified immediately in the even of a missed evaluation. Upon acceptance of the documentation, the weighting of the missed deliverable will normally be applied to the final exam.

English Competency:

The ability to communicate effectively is essential for success in business. Therefore, you must demonstrate English competency in this course in both oral and written work. Ensure your written work includes correct sentence structure, spelling and punctuation. Always spell check, edit and proofread your work.

Grading is based on the following marking scheme:

Case Study                                   10%
Term Test 40%
Final Exam 50%
Total 100%

Please retain this course outline document for future educational and/or employment use.

Program Coordinator
Keith Chapin

Approved by: Jeff McCarthy