Overview 

This practical workshop provides participants with a comprehensive understanding of internal controls, their role in governance and risk management, and how effective controls support operational efficiency, regulatory compliance, and fraud prevention. The course combines practical examples, case studies, and interactive exercises to help participants understand how controls operate in real business environments.  

Participants will learn how to identify control weaknesses, evaluate control effectiveness, and distinguish between preventive, detective, corrective, and compensating controls. The workshop also explores common control failures, management responsibilities, and the role of internal audit in assessing internal control systems.  

By the end of the course, participants will be able to:  

• Understand the purpose and structure of internal controls  

• Distinguish between different types of controls  

• Identify control weaknesses and operational risks  

• Assess control effectiveness in practice  

• Apply practical techniques to test and evaluate controls  

• Recommend improvements to strengthen governance and compliance  

Who should attend? 

• Internal Auditors  

• Risk and Compliance Professionals  

• Operational Risk Managers  

• Finance and Accounting Staff  

• Process Owners  

• IT Auditors  

• Managers and Supervisors  

Course description 

Module 1: Understanding Internal Controls  

• Definition, objectives, and importance  

• Internal control vs risk management  

• COSO framework components  

• Control culture and governance  

Module 2: Types and Categories of Controls  

• Preventive, detective, corrective, compensating controls  

• Manual and automated controls  

• Hard controls vs soft controls  

• Examples across business functions  

Exercise  

• Identifying and categorizing controls  

Module 3: Controls Across Key Processes  

• Procurement cycle controls  

• Revenue and payment controls  

• HR and payroll controls  

• Inventory and asset controls  

• IT general controls (ITGCs)  

Case Study  

• Process walkthrough and control mapping  

Module 4: Segregation of Duties (SoD)  

• Understanding incompatible duties  

• SoD conflicts and fraud risks  

• Access rights and approval structures  

• Monitoring privileged access  

Workshop  

• Identifying SoD conflicts in sample scenarios  

Module 5: Identifying Weaknesses and Control Failures  

• Root causes of weak controls  

• Override of controls  

• Shadow processes and unofficial workarounds  

• Lessons learned from fraud and operational failures  

Group Exercise  

• Analyzing control failure scenarios  

Module 6: Testing Internal Controls  

• Control design assessment  

• Operating effectiveness testing  

• Walkthroughs and interviews  

• Sampling and evidence gathering  

• Documentation standards 

Practical Exercise  

• Performing a control test  

Module 7: Reporting Control Issues  

• Writing clear audit observations  

• Root cause analysis  

• Risk impact assessment  

• Developing practical recommendations  

• Communicating with management  

Module 8: Improving the Control Environment  

• Embedding practical and sustainable controls  

• Continuous monitoring and KPIs  

• Control ownership and accountability  

• Role of internal audit, compliance, and management  

• Creating a risk-aware culture  

Final Workshop  

• Developing an internal control improvement plan  

Trainer bio 

Isabella Arndorfer (CIA, CCSA, CFSA, Mediator) is an experienced internal audit and governance specialist with over 20 years of experience in the financial sector. From 2003 to 2023, she served as Internal Audit Manager in the Internal Audit Department of the Bank for International Settlements (Basel, Switzerland) and the International Monetary Fund (Washington DC, USA). She led and conducted audits in the Banking Department, the General Secretariat, and the Monetary and Economic Department, focusing on internal controls and corporate governance issues at financial institutions.  

She lectures on internal audits and governance topics at central bank seminars in Asia and Europe, as well as at the University of St. Gallen (Switzerland). She holds a degree in business administration from the University of Economics and Culture in Vienna (Austria) and a master's degree in international management from ESADE, Barcelona, Spain. She is a Certified Internal Auditor (CIA), a Certified Financial Services Auditor (CFSA), and holds a CCSA (Certificate of Control Self-Assessment) from the Institute of Internal Auditors (IIA), Florida, USA.  

In 2023, she founded the training platform www.cpetrainer.com and has since been offering freelance consulting services in the areas of audit, risk management, compliance and governance through her company www.ia-advisory.com .