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.
The course contributes to the achievement of the degree program’s learning objectives by providing advanced knowledge in the field of corporate administrative and financial management.
In light of recent regulatory and market developments, companies are increasingly required to manage risks in a more aware and structured manner. In this context, the course explores the internal control system from the perspective of Article 2086 of the Italian Civil Code.
It also examines the role of the accounting Technical Expert in assessing the adequacy of organizational, administrative, and accounting frameworks, as well as in other types of cases.
Finally, the course analyzes the Internal Audit function, with particular focus on the competencies required of Internal Auditors and the relevant professional standards.

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

- Corporate governance and adequate organizational, administrative, and accounting frameworks pursuant to Article 2086 of the Italian Civil Code
- Liability of directors and supervisory bodies in relation to adequate frameworks and corporate crisis
- The role of the Court-Appointed Technical Expert (CTU) and the Party-Appointed Technical Expert (CTP) in assessing the adequacy of organizational, administrative, and accounting frameworks and in corporate crisis proceedings
- Role and methodologies of the Technical Expert in other types of cases
- The role of Internal Audit within the corporate governance system
- Internal Audit competencies, the Institute of Internal Auditors (IIA) competency framework, and professional standards
- Operational phases of the audit process
- Artificial Intelligence, data governance, and predictive auditing

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

The assessment of learning is carried out through a written exam. The written exam consists of exercises aimed at verifying the knowledge of the basic technical concepts covered during the course. During the exam, the use of books, notes, or electronic devices is not permitted.

The written exam, lasting 1.5 hours, consists of three open-ended questions and one calculation exercise. The expected learning outcomes assessed include “knowledge and understanding,” “ability to apply knowledge and understanding,” and “judgment skills.”

The maximum achievable grade is 30/30.

written and oral

The lecturer has a duty to ensure that the rules regarding the authenticity and originality of exam tests and papers are respected. Therefore, if there is suspicion of irregular conduct, an additional assessment may be conducted, which could differ from the original exam description.

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