| CODE | ISR5036 | ||||||||||||
| TITLE | Governance and Audit Management | ||||||||||||
| UM LEVEL | 05 - Postgraduate Modular Diploma or Degree Course | ||||||||||||
| MQF LEVEL | 7 | ||||||||||||
| ECTS CREDITS | 10 | ||||||||||||
| DEPARTMENT | Insurance and Risk Management | ||||||||||||
| DESCRIPTION | This comprehensive unit on Governance and Audit Management provides an in-depth exploration of governance and audit management in financial services entities, focusing on the roles of internal audit committees, internal auditors, and directors. It covers Maltese and EU regulatory frameworks, governance structures, and best practices, with a strong emphasis on real-world case studies. The unit delves into the responsibilities and functions of internal audit entities and directors, highlighting their impact on risk management, regulatory compliance, and ethical governance. Case studies will illustrate challenges in regulatory compliance, conflict of interest management, stakeholder engagement, and internal controls. This study-unit will be divided into two parts. Part I will overview the foundations of modern internal auditing, including its role in assessing the effectiveness of internal controls, risk management and corporate governance. It will examine internal auditing as a discipline and its relevance to management success as well as the management significance of the discipline's professionalism, including adherence to internationally accepted standards and also its approach, including dealing with fraud investigations. This will be followed by how an audit strategy is set and the audit planning process. The audit fieldwork including planning, evaluation, testing strategies, reporting and follow-up will also be explained, as well as how one is to meet modern challenges of benchmarking, ethical conflicts and own performance measurement and effectiveness. The internal audit communication with the various related parties, including user departments, management, Audit Committee, Board, external auditors and the effectiveness of such links will also be included. Part II will then treat with the management or value-for-money audit, involving an assessment of methods and policies of an organization's management in the administration and the use of resources, tactical and strategic planning, and employee and organizational improvement. This will include how a management auditor will deal with the review of managerial aspects like corporate objectives, policies, procedures, structures, controls and systems for such auditor to assess the economy, efficiency and effectiveness of management. The focus will be on how to ascertain whether results have been achieved, how well the management has been operating the business of the company, whether the managerial style is well suited for business operation and the challenges posed by underlying rules, procedures and methods. Study-unit Aims: - To offer a holistic understanding of governance and audit management in financial services entities, focusing on internal audit and directorial roles within Maltese and EU regulatory contexts; - To utilize case studies for practical insights into the application of governance and audit management principles; - To explore the regulatory frameworks and operational structures governing internal audit committees, auditors, and directors; - To assist students to understand the responsibilities and challenges faced by these roles in ensuring compliance, risk management, and ethical governance; - To analyze real-world case studies depicting practical scenarios in governance and audit management; - To study the effectiveness of governance structures and audit functions in enhancing financial integrity and compliance; - To demonstrate the management relevance of the fast-emerging discipline of internal auditing, which applies auditing concepts and techniques in the context of corporate governance, control and risk management; - To demonstrate the concept and relevance of the management audit in modern corporate governance and its significance for management success. Learning Outcomes: 1. Knowledge & Understanding By the end of the study-unit the student will be able to: - Articulate the requirements for governance and audit functions as defined in Maltese law and EU directives; - Describe the roles and responsibilities of internal audit committees, auditors, and directors in financial entities; - Explain the foundations of internal auditing and the role it plays as a tool for top management and the significance to internal auditors of standards and their application; - Distinguish clearly among the different roles of internal auditing in control, corporate governance and risk management; - Describe how a management audit is carried out; - Recognize how such management audit can help managers improve their performance. 2. Skills By the end of the study-unit the student will be able to: - Apply best practices in governance and audit management in line with Maltese and EU guidelines; - Identify and address challenges in governance and audit management, adapting to regulatory changes; - Use case studies to understand the practical application of governance principles and audit functions; - Evaluate the effectiveness of governance structures and audit practices in maintaining financial integrity and compliance; - Identify manner of performing internal audits including planning, reporting and follow-up; - Build up ways of improving audit committee communication, fraud detection and prevention; - Utilize the results of the both internal and management audits to the benefit of their organization. Main Text/s and any supplementary readings: Main Text - Sawyer L. Sawyer's Internal Auditing: The Practice of Modern Internal Auditing (Institute of Internal Auditors) - Spencer Pickett KH, The Essential Handbook of Internal Auditing (Wiley) Wiley. Supplementary - Sacconi, Lorenzo, Corporate Social Responsibility (CSR) as a Model of 'Extended' Corporate Governance: An Explanation Based on the Economic Theories of Social Contract, Reputation and Reciprocal Conformism (February 2004). LIUC, Ethics, Law and Economics Paper No. 142, Available at SSRN: https://ssrn.com/abstract=514522 or http://dx.doi.org/10.2139/ssrn.514522 - Buttigieg, Christopher P., Governance of Securities Regulation and Supervision: Quo Vadis Europa? (February 9, 2015). Columbia Journal of European Law, Vol. 21, 2015, pp 411 - 449, Available at SSRN: https://ssrn.com/abstract=2585453 - Al-Baidhani 兀. 丿. 丕丨賲丿 丕賱亘賷囟丕賳賷, Prof. Dr. Ahmed, The Role of Audit Committee in Corporate Governance: Descriptive Study (August 26, 2014). Available at SSRN: https://ssrn.com/abstract=2487167 or http://dx.doi.org/10.2139/ssrn.2487167 - Buttigieg, Christopher P., Strengthening the Governance of National Financial Supervision in the EU: Existing Weaknesses and a Proposal for Reform (2014) - ERA Forum, Vol 15 No 2, Available at SSRN: https://ssrn.com/abstract=2444580 - Zhang, Yan and Zhou, Jian and Zhou, Nan, Audit Committee Quality, Auditor Independence, and Internal Control Weaknesses (2006). Available at SSRN: https://ssrn.com/abstract=925732 or http://dx.doi.org/10.2139/ssrn.925732 - Pathak Phd, CPA, CGA, CFF, CFE, CISA, Jagdish and Lind, Mary R., Audit Risk, Complex Technology, & Auditing Processes (March 2003). Available at SSRN: https://ssrn.com/abstract=397321 or http://dx.doi.org/10.2139/ssrn.397321 - Cattrysse, Jan, Reflections on Corporate Governance and the Role of the Internal Auditor (2005). Available at SSRN: https://ssrn.com/abstract=485364 or http://dx.doi.org/10.2139/ssrn.485364 - Diamond, Jack, The Role of Internal Audit in Government Financial Management: An International Perspective (May 2002). IMF Working Paper No. 02/94, Available at SSRN: https://ssrn.com/abstract=879645 - Canestrari-Soh, Dominic and Martinov-Bennie, Nonna, The Internal Audit Function: Perceptions of Internal Audit Roles, Effectiveness, and Evaluation (June 7, 2011). Managerial Auditing Journal, Vol. 26, Issue 7, pp. 605-622, Available at SSRN: https://ssrn.com/abstract=1860568 - Pizzini, Mina and Lin, Shu and Ziegenfuss, Douglas E., The Impact of Internal Audit Function Quality and Contribution on Audit Delays (September 26, 2012). Available at SSRN: https://ssrn.com/abstract=1673490 or http://dx.doi.org/10.2139/ssrn.1673490 - Hoitash, Udi and Hoitash, Rani and Bedard, Jean C., Corporate Governance and Internal Control over Financial Reporting: A Comparison of Regulatory Regimes (November 1, 2008). Accounting Review, Vol. 84, No. 3, p. 839, 2009, Available at SSRN: https://ssrn.com/abstract=954057 |
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| ADDITIONAL NOTES | Pre-Requisite qualifications: Bachelor's Degree or as decided by the Board of Studies | ||||||||||||
| STUDY-UNIT TYPE | Lecture | ||||||||||||
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| LECTURER/S | Rafael Moreira Geraldine Ann Baldacchino Alison Cortis Andre Farrugia Catherine Galea Vaclav Kupec Pierpaolo Marano Aidan Massa Andrew Said Daniela Sammut Sharon Seychell Mark Lawrence Mario Zammit |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2025/6. It may be subject to change in subsequent years. |
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