ACCO 20163 – GOVERNANCE, BUSINESS ETHICS, RISK MANAGEMENT,

AND INTERNAL CONTROL

COURSE DESCRIPTION

Overview

This course is designed to prepare BSA and BSMA students to become professionals who provide
value to the organization and who serve as the catalyst for improving organization governance, risk
management, and internal control.

In Certified Public Accountant Licensure Examination, this subject will cover:

• SEC Code of Corporate Governance under Regulatory Framework for Business Transactions;
• Planning Phase of the Audit Process particularly Understanding the Entity and its Environment
including its Internal Control and Test of Control under Auditing; and
• Consultancy under Management Advisory Services.

This subject, “Governance, Risk Management, and Control,” makes up thirty-five percent (35%) of the
2019 CIA Exam Syllabus, Part 1 – Essentials of Internal Auditing, covering the foundation of internal
auditing; independence and objectivity; proficiency and due professional care; quality assurance and
improvement programs; governance, risk management, and control; and fraud risk.

Course Objectives

At the end of the semester, students are expected to:

• Possess current knowledge of professional standards that are expected from a professional
accountant and demonstrate appropriate use;
• Demonstrate knowledge of corporate governance, risk management, and internal control;
• Apply knowledge in business acumen, IT, and management needed for internal auditing;
• Be able to apply tools and technique to evaluate risks and internal controls;
• Be able to perform an audit engagement with minimal supervision in conformance with
acceptable professional standards;

Modules

The course is subdivided into nine (9) modules as follows:

Module 1 Internal Auditing

Module 2 Conceptual Framework of Corporate Governance
Module 3 SEC Code of Corporate Governance
Module 4 Business Ethics, Corporate Social Responsibility and Sustainability
Module 5 Fundamental Concepts of Risk and the Risk Management Process
Module 6 Enterprise Risk Management
Module 7 Basic Concepts and Elements of Internal Control
Module 8 Evaluating the Design and Effectiveness of Internal Control
Module 9 Fraud Risks

Reference and Readings:

Reading materials you may use in this course are the following:
• The IIA’s International Standards for the Professional Practice of Internal Auditing
• Philippine Framework for Assurance Engagements
• SEC Code of Corporate Governance
• G20/OECD Principles of Corporate Governance
• Revised Corporation Code
• Sustainability Reporting Guidelines
• Code of Business Conduct and Ethics
• Corporate Governance Manual
• COSO’s Enterprise Risk Management – Integrating with Strategy and Performance
• ISO 31000:2018
• Philippine Standards on Auditing
• COSO Internal Control – Integrated Framework
• Any other books or e-books on Governance, Business Ethics, Risk Management, and Control

Activities/Assessments
• Activities consist of one mandatory comprehensive examination on Governance, Business
Ethics, Risk Management, and Control and ten optional activities. The comprehensive
examination is scheduled on June 30, 2020. The students may suggest an earlier or a later date,
but not later than July 12, 2020, which is the official end of the summer term.

• One optional activity (in essay form) will be given per module in order to reasonably assess the
students’ understanding of the topic. A plausible answer entitles the student to one additional
point to his/her comprehensive examination. In case identical answers are posted, the earlier
one shall earn the credit. Students are encouraged to coordinate with their classmates and work
together. Students’ suggestion on other activities they think will work in their favor are welcome,
provided that the suggestion is directly connected to the subject and approved by at least
majority of the class. All answers to optional activities shall be posted on or before June 30,
2020.

• In view of the current situation, the Final Grade shall be computed as follows:

• Final Grade suggested computation:

Comprehensive Examination 50%

Case analysis 20%
Class suggested activities 30%
Total 100%