Confidential learning case · BKASK2014
Think like
an auditor.
Examine the process. Follow the evidence. Make the call.
Confidential
01
Investigation briefing
Begin the audit mission.
Watch the briefing before opening your assignment.
02
Confidential assignment
Open the audit memo.
Review management’s instructions before examining Company A and Company B.
03
Mission briefing
Your audit assignment
Scene 01 / 03
Internal Audit Division
You have been assigned
to a new investigation.
Two companies. The same cash transaction. Different process designs.
Internal Audit Team
Analyse. Compare. Recommend.
- 01Analysehow each process is organised
- 02Comparewhere independent checks occur
- 03Recommendone practical improvement
04
The business process
Follow the flow.
A business process is a connected series of activities performed to achieve a business objective.
Selected activity
Cash is received and responsibility for the asset begins.
Why might it matter who performs each activity?
05–06
Investigate the companies
Map the responsibility.
Select a name, then assign it to a process stage. Complete both case files before making your call.
Case file
Company A
Process observation
Activity 02 · Transaction file
Follow the RM500 Locked
Complete Activity 01 by assigning all four name cards to unlock this file.
Process stress test
Company A · RM500 transaction
07
Audit judgement & justification
Make your call.
Which company provides a better opportunity for the RM100 difference to be noticed independently?
Step 1: Select a company.
Step 2 — Why? Select the strongest reason.
08 · Discover the principle
Segregation
of Duties
One person should not control all critical parts of a transaction.
Custody
Physical access to or responsibility for an asset.
Example: receiving or holding cashRecording
Entering transactions into the accounting records.
Example: recording a cash saleAuthorisation & Review
Approving or independently checking another person's work.
Example: reviewing a bank reconciliation09
SMEs reality check
When full segregation is not practical.
Company A is a small business with only three employees. Hiring additional staff is not practical, and Nadia still needs to perform several cash-handling duties.
Your challenge
You cannot fully segregate the duties.
Assume RM500 is received but only RM400 is deposited. Choose the two controls most likely to give the owner independent evidence and timely detection.
Think time10Review the options before deciding.
Think time
Review all six controls.
When full segregation is not practical…
SMEs can use other controls to reduce risk.
SupervisionIndependent VerificationAuthorisationAutomated Monitoring
Concept revealCompensating Controls
Alternative controls used to reduce risk when ideal segregation of duties is not practical.
Is segregation of duties the only solution?
Exactly.Good internal control is not always about adding more people.
It is about designing checks that fit the organisation and reduce risk.
10
Reinforcement case
Try another process.
Transfer the principle
Redesign the purchasing process.
Match each person to the most suitable stage. Drag a role card—or select it and then choose a stage.
11
Quick knowledge check
Test your audit thinking.
Five questions. One best answer for each.
12
Revision vault
Open the quick notes.
13 · Audit team — assignment review
Report your
final findings.
Your audit assignment asked you to REVIEW, COMPARE, and RECOMMEND.
You have now completed the investigation of Company A and Company B. Before we close the case, report your final findings.
What did you discover from this assignment?
Class audit findings
What did our audit teams discover?
Live board
Loading class findings…
14
Collective concept check
Build our internal control word cloud.
Which internal control terms did you discover today? Add as many terms as you found during the investigation.
Live class cloud
No terms added yet. Add the first internal control term.
Your terms
What did you learn?
Type a term and press Enter or a comma. Add several terms before submitting.
15 · Audit assignment — completed
Review the process.
Compare who does what.
Separate key responsibilities.
Recommend practical improvements.
Segregation of Duties strengthens process control.
CaseClosed