Environmental, Social and Governance (ESG) considerations are now a core component of organisational strategy, risk management and reporting. Regulators, investors, customers and communities increasingly expect organisations to demonstrate credible ESG practices supported by robust governance, controls and assurance. Internal audit functions are uniquely positioned to provide independent and objective assurance over ESG risks, processes and disclosures.
This practical training program is designed to help internal auditors understand ESG concepts and apply them effectively within an internal audit context. The program focuses on translating ESG theory into practical internal audit activities, including risk identification, scoping, controls assessment, testing and reporting.
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Topic
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Brief Summary
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Learning Outcomes
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Introduction to ESG
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Outlining the concept of ESG, what it entails, and how each component fits together.
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Holistic understanding of the concept of ESG, and why it is important.
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Changing ESG landscape over time
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History and recent developments in the ESG space, and examples.
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Gaining an understanding how ESG has become more applicable and appropriate over time, seeking unified standards.
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Gaining assurance
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Sources of assurance for the governing body
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Gain an understanding of the design and monitoring of processes that support ESG objectives.
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Role of internal audit
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General role of internal audit and its application to ESG.
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Articulating that internal audit has a critical role to play in the ESG space.
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Introduction into climate risk (E), modern slavery risk (S) and responsible sourcing (G)
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Overview and assessment of these three key ESG risks, their developments over time, and assessing impacts, likelihood and mitigating factors.
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Practical application of three key risks and mitigations for tangible examples relevant to internal audit.
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Risk identification
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Theory component of risk identification for ESG.
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Linking risk management best practice to ESG.
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Understanding the organisation
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The organisational context is critical to understanding ESG risk.
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Learn how to assess your organisation’s approach to sustainability.
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Risk identification group exercise
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In groups, for a given scenario, identify the risk, and consider the preventative and detective controls available.
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Practical application in groups and presentation of ideas.
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End of Day 1
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Topic
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Brief Summary
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Learning Outcomes
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Introduction to reporting frameworks
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Introducing at a high level the current reporting frameworks. (including understanding the scope of a Sustainability Report versus sustainability reporting)
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Understanding the purposes of the reporting frameworks.
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Understanding legislation
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Application as to how this applies to industries.
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Thought process around the impacts on internal audit.
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Introduction to materiality assessments
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What are they and why are they important.
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General understanding of materiality
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International Standards and Materiality
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The future of materiality and its interpretation on globally recognised standards (ASRS, GRI, etc)
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General understanding of the frameworks, what this means, and its application (eg showing that “materiality” for finance and ESG is becoming more aligned).
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Activity
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Review Risk Register and Materiality assessment results – three groups (E/S/G) – identify key risks that could be subject to internal audit – and what type of activity (data analytics, compliance, controls design and effectiveness testing)
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ESG scoping and application of internal audit skills to this subject matter.
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Sustainability Reporting Auditing
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Sustainability Assurance standards
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Deep dive into climate risk (TCFD) and modern slavery risk (MSA)
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Analysis of TCFD sustainability reporting requirements and Modern Slavery Act
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Better understanding of each area.
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How to develop an internal audit scope
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General process for developing a scope – gathering feedback and ideas from attendee.
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Theory component of constructing a scope
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Exercise – develop audit procedures (climate risk, modern slavery risk and responsible sourcing)
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Group exercise to consider how climate risk, modern slavery obligations and responsible sourcing could be tested.
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Applying procedures to test scoped requirements.
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Exercise – develop an observation, risk and recommendation
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In groups, build internal audit findings
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Application of internal audit activities on ESG.
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Wider internal audit considerations
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What the future looks like and other materials / support ERM can provide.
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N/a
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End of Day 2
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Facilitators:
Isil Uysun PMIIA, CCSA, CGAP, CIA, CRMA, Partner, ERM CVS
Isil is a Partner with ERM CVS with extensive experience in internal audit, corporate governance, ESG and certification. With over 20 years of working experience both in Turkey and Australia, Isil specialises in risk assurance areas focusing on internal audit, controls, risk, and compliance. Isil is currently a Partner in ERM CVS APAC, focusing on assurance services particularly around certification to international sustainability standards like IRMA, ASI, Copper Mark and ISO as well as providing assurance for voluntary and mandatory sustainability reporting criteria. In her previous role as a partner in PwC, she was the Internal Audit Services Leader and the CAE of PwC Turkey and she was involved in establishment and leading the Certification, Compliance and Training team in PwC Australia that provided range of services including ISO 9001, 14001, 45001, 27001 certifications, as well as certifications related to Food Safety, HACCP, NDIS, SMETA and TAPA in addition to the in-house or public ISO trainings.
Alan Dayeh, Partner, Sustainability Strategy & Financial Services, ERM
Alan is Partner, Sustainability Strategy & Financial Services, ERM based in Sydney. He oversees the firm’s integrated advisory solutions in corporate responsibility and sustainability, including environmental, social and governance risk. With over 25 years of industry and professional services experience, he takes a pragmatic approach to integrating sustainability strategies and risk management into organisations. He works with investors to strengthen their chosen ESG integration and reporting approaches.
CPE Points: 7
Knowledge Level: Intermediate
Delivery Format: Facilitator-led training via Zoom (Note: This training program will be delivered in two 4 hour lessons, over two days using Zoom. Registrations will be strictly limited to 15 participants to allow maximum interaction in the online environment.)
IIA-Australia Member: $660.00 AUD
IIA-Australia Non-Member: $795.00 AUD