Critical Thinking: A Vital Auditing Competency
Critical thinking is often the central ingredient necessary for providing insights that help management better manage risk and create a sustainable control environment. Most organizations consider critical thinking an indispensable skill for internal auditors.
Critical thinking skills lead to improved decision-making and can result in better organizational performance. It involves the tasks of collecting and analyzing information, drawing compelling conclusions, and providing recommendations that better enable organizations to achieve their strategic objectives.
This course examines the various facets and components of this important core competency and demonstrates how it can be weaved throughout key elements of the audit process. Critical thinking is disciplined thinking that is clear, rational, open-minded, and informed by evidence, which makes it ideally suited for application in an audit setting. The concepts and practices presented in this course are designed to enhance audit effectiveness and deliver measurable value to audit customers.
Who will benefit from this program?
This course provides hands on, practical application of critical thinking skills, in context to daily activities of an internal auditor. This course is intended for senior and staff auditors seeking an opportunity to enhance their audit interviewing techniques and the quality of their workpapers; lead auditors who want to employ critical thinking skills in conversations with management and in the development of audit observations; and audit managers and/or CAEs interested in learning how to integrate critical thinking throughout the audit cycle.
Course Objectives
- Identify the purpose, importance, and key terms of critical thinking.
- Identify The IIA’s relevant International Standards for the Professional Practice of Internal Auditing and related Implementation Guidance.
- Identify critical thinking fallacies and biases.
- Discover how critical thinking is used during engagement risk assessments.
- Apply critical thinking while interviewing during audit engagements.
Course Topics
Critical Thinking Overview
- Critical thinking defined.
- Importance of critical thinking.
- Relevant IIA Standards and related Implementation Guidance.
- Critical thinking in the internal audit process.
- Advantages of critical thinking.
Biases and Fallacies
- Impediments to critical thinking.
- Psychological and cognitive biases.
- Logical fallacies.
Critical Thinking While Interviewing
- Audit interviews and walkthroughs.
- Standards and guidance.
- Elements of communication.
- Neuro-linguistic programming (NLP).
Risk Assessments and Critical Thinking
- Critical thinking during the risk assessment.
- Critical thinking in consideration of organizational change.
- Applying critical thinking to the risk assessment model.
Summary Info
NASBA Knowledge Level: Basic
NASBA Field of Study: Personal Development
Competency Level: Applied Knowledge
Prerequisites: None
Advance Preparation: None
Topic(s): Soft Skills
IIA Competencies: Leadership and Communication Performance
