Learning outcomes

Students must be able to assess an internal audit function as well as the internal control system within an organization. They should be capable of independently and autonomously analyzing and evaluating sensitive situations that may arise in an operational and strategic context. Risk management is the key element

Goals

The main objective of the course is to:

  • Review the key stakeholders involved in the implementation and/or oversight of risk management and internal control procedures that structure how organizations operate. In addition to understanding their missions and roles, it is important to identify the interactions between these stakeholders (both internal and external to the organization).
  • Understand the COSO framework and its evolution over time. Beyond mastering the framework, students should be able to:
  1. Illustrate the principles with concrete examples that may exist within an organization;
  2. Identify the stakeholders who play a more significant role in one or another component of internal control.


Content

Internal control is the activity within a company that serves management by ensuring the control of operations through appropriate risk (and opportunity) management.

This activity concerns the organizational structure as well as the selection and implementation of methods and procedures aimed at ensuring effective risk management, sound governance conditions, asset protection, and the reliability of information.

After a general overview of the key governance stakeholders, the course will focus on presenting the principles outlined in the COSO framework.

The key element of the approach lies in risk analysis and effective risk management by operational management. An evaluation of the organization’s functioning, based on a risk management analysis conducted by the internal auditor, is also important.

By the end of the course, students should be able to understand the ins and outs of the COSO model and be able to illustrate it with examples.

In addition, they should be able to identify the various stakeholders involved and understand the interconnections between them.

Table of contents

After outlining the structure of a company where ownership and management functions are separated, various stakeholders are identified as playing a role in risk management and internal control. Based on the Belgian Code of Companies and Associations, as well as other relevant Belgian and European legal, regulatory, or normative texts, the interactions between these stakeholders will be analyzed to understand the role each one plays.

The second part of the course focuses on examining the COSO framework from different perspectives:

·       COSO 1992

·       COSO ERM 2004

·       COSO 2013

·       COSO ERM 2017

·       COSO and its application in SMEs

·       The impact of sustainability on internal control and risk management.

Teaching methods

Presentations (with expected interaction) including practical illustrations.

The syllabus is divided into two parts, corresponding to the two sections of the course.


Presentation of the main characteristics of risk management and the implementation/monitoring of internal control procedures, by juxtaposing:

·       A theoretical overview of the principles prescribed by the COSO model;

·       The application of these principles through examples (case studies that participants will be asked to prepare in advance of the sessions);

·       The identification of key stakeholders involved in risk management and the implementation/monitoring of internal control procedures.

A specific focus will be placed on the role played by the audit committee (or supervisory committee).

Assessment method

Oral exam under closed-book conditions.

Practical cases will need to be prepared throughout the year.

The oral exam accounts for 14 points.

A group project must also be submitted as part of the course, which accounts for 6 points.

Language of instruction

French