INTERNAL CONTROL SYSTEMS AND INTERNAL AUDITING

The course contributes to the educational objectives of the degree course, which aims to provide advanced knowledge on the administrative and financial management of companies.
Following recent regulatory and market developments, companies must manage risks in an increasingly conscious and professional manner. The course delves into risk management techniques and internal control systems, analyzing the main international standards (among others: COSO Framework and COBIT).
Particular attention will be paid to the Internal Audit function: the skills required of Internal Auditors and the standards of the profession will be explored in depth. Furthermore, students will acquire the main notions and techniques that guide Internal Audit activities.

1 KNOWLEDGE AND UNDERSTANDING
- Know the key principles of corporate governance and the main regulatory and professional references at a national level;
- Know the main reference models for risk management;
- Know the sources of the professional standards that inspire the Internal Audit activity

2 ABILITY TO APPLY KNOWLEDGE AND UNDERSTANDING
- Know how to apply international best practices in the field of corporate governance;
- Know how to identify the main standards for the professional figure of the Internal Auditor;
- Know how to apply the techniques that guide the Internal Auditor's activity.

3 JUDGMENT ABILITY
- know how to formulate hypotheses and judgments regarding the effectiveness of the corporate governance system and the Internal Control System;
- know how to identify the main areas of corporate risk, also in order to direct the Internal Audit activity.

Management control and business law

- Introduction to corporate governance
- Risk classification and introduction to risk management
- Internal control systems: main international standards
- The role of Internal Audit in the corporate governance system
- Internal Audit skills, the competency framework of the Institute of Internal Auditors and the professional standards
- Types of Internal Audit
- Operational phases of Internal Audit
- Evaluation of the Internal Control System
- ESG risk management
- Artificial Intelligence, data governance and predictive audit
- Case studies

- Dittmeier C.A., Internal Auditing, Egea, Milano, 2007.
- Other readings uploaded by the instructor

Verification of learning takes place through a written test and an oral test. The written test consists of exercises with the aim of ascertaining knowledge of the basic technical notions covered in the course. During the written test, the use of books, notes or electronic media is not permitted. During the oral test the student must demonstrate that he knows the topics covered during the course and knows how to present them in a formal way. The methods envisaged for assessing the knowledge and skills acquired are:
a) a written exam, lasting 1 hour, consisting of 3 open questions. In this first phase, the expected learning outcomes related to the "knowledge and understanding" category will be evaluated. The maximum achievable grade is 15/30;
b) an oral exam, during which the student's knowledge will be assessed with particular reference to the expected learning outcomes attributable to the categories "ability to apply knowledge and understanding" and "ability to judge". The maximum achievable grade is 15/30.
As regards the gradation of the grade (how the grades will be assigned), regardless of the attending or non-attending mode:
A. scores in the 18-22 range will be awarded in the presence of:
- sufficient knowledge and ability to understand applied in relation to the programme;
- sufficient ability to apply knowledge and understanding and judgment;
- sufficient communication skills, especially in relation to the use of specific language relating to the subject;
B. scores in the 23-26 range will be awarded in the presence of:
- good knowledge and ability to understand applied in relation to the programme;
- good ability to apply knowledge and understanding and judgement;
- good communication skills, especially in relation to the use of specific language relating to the subject;
C. scores in the 27-30 range will be awarded in the presence of:
- excellent knowledge and ability to understand applied in relation to the programme;
- excellent ability to apply knowledge and understanding and judgment;
- excellent communication skills, especially in relation to the use of specific language relating to the subject.

In class lectures and case studies

Italian

written and oral