Upon completion of this course, participants will be able to:

• Apply the **COSO Internal Control Framework** to the unique operational processes of Development Finance Institutions (DFIs) and development entities.
• Design and execute **risk-based operational audits** focused on high-risk areas like project disbursement, grant management, and technical assistance.
• Evaluate the effectiveness of internal controls over the complex, multi-stage **project life cycle** (origination, disbursement, monitoring, closure).
• Develop specialized **fraud risk assessment** methodologies tailored to procurement, grant funding, and operations in high-corruption jurisdictions.
• Establish audit protocols for verifying the accuracy and integrity of **developmental impact data** and non-financial metrics.
• Understand and audit the institution's compliance with key donor requirements, fiduciary standards, and anti-corruption regulations.
• Formulate clear, actionable audit findings and work with management to develop robust corrective action plans (CAPs).
• Master the use of **data analytics** (e.g., continuous auditing) to monitor operational controls and detect anomalies in real-time.

• Internal Auditors and Chief Audit Executives (CAEs) of DFIs and Development Agencies.
• Operational Risk Managers and Control Specialists.
• Compliance Officers and Anti-Corruption Specialists.
• Project and Program Managers responsible for control implementation.
• Financial Supervisors overseeing the internal control environment of specialized entities.

• Operational Audit Case Studies on Project Disbursement and Grant Management
• Workshops on Applying the COSO Framework to DFI Lending Processes
• Group Activities on Developing a Fraud Risk Assessment Checklist for High-Risk Regions
• Expert Lectures on Donor Fiduciary Standards and Compliance Requirements
• Data Analytics (DA) Workshops for Continuous Auditing and Anomaly Detection
• Individual Exercises on Drafting Audit Findings and Corrective Action Recommendations

Unit 1: The Operational Control Environment in DFIs

• The unique operational risk profile of DFIs: high geographic risk, long project cycles, reliance on third parties.
• Adapting the **COSO Framework** (Control Environment, Risk Assessment, Control Activities) to development processes.
• Review of international best practices and donor fiduciary requirements (e.g., World Bank, UN).
• The role of the Internal Audit function in the DFI's governance and assurance structure.
• The challenge of balancing operational efficiency with control rigor in development contexts.

Unit 2: Auditing the Project Life Cycle Controls

• Designing audit programs for the project **origination and appraisal** phase (e.g., due diligence, control sign-offs).
• Auditing controls over the complex **disbursement process** (tranches, conditions precedent, expenditure verification).
• Assessing the effectiveness of controls over **project monitoring and supervision** (e.g., site visits, progress reports).
• Protocols for auditing the control environment of **grant management and technical assistance** activities.
• Verifying controls over the secure management of sensitive project and borrower data.

Unit 3: Fraud Risk Assessment and Anti-Corruption Controls

• Developing a specialized **fraud risk assessment** methodology for development projects and procurement processes.
• Auditing the effectiveness of **anti-corruption policies** (e.g., AML, anti-bribery, whistleblowing) and their enforcement.
• Protocols for conducting forensic investigations of alleged fraud and misuse of funds.
• Reviewing controls over third-party engagement (agents, consultants) and high-risk vendor selection.
• The role of the audit function in ensuring compliance with international sanctions and anti-money laundering regulations.

Unit 4: Data Analytics and Continuous Auditing

• Utilizing **Data Analytics (DA)** tools to perform continuous auditing of transaction flows and control performance.
• Developing audit scripts for anomaly detection in large operational datasets (e.g., procurement spending, expense reports).
• Protocols for embedding audit functions into automated operational processes and IT systems.
• The use of geographic information systems (GIS) and remote sensing for project monitoring verification.
• Managing the data quality and access requirements for effective operational auditing.

Unit 5: Impact Data and Audit Reporting

• Establishing audit criteria for verifying the accuracy, reliability, and completeness of **developmental impact data**.
• Auditing the controls over the methodology and aggregation of non-financial performance metrics.
• Protocols for drafting clear, concise, and actionable **audit reports** for the Audit Committee and management.
• Following up on audit findings and reviewing the adequacy of management's **Corrective Action Plans (CAPs)**.
• Communicating the value of the operational audit function to internal and external stakeholders.