IFRS:

Internal Audit’s Roadmap for Conversion

Training Introduction

Background

The transition from local accounting standards (such as U.S. GAAP or national GAAPs) to International Financial Reporting Standards (IFRS) represents a significant undertaking for any organization. It affects not only financial reporting, but also internal controls, systems, policies, performance metrics, and governance.

For internal auditors, this transition creates both challenges and opportunities. Auditors must assess the adequacy of change management, review new controls, verify the integrity of financial information under the new standards, and support risk management during the transformation.

This course is designed to provide internal auditors with a clear roadmap to effectively support and evaluate the IFRS conversion process from start to finish.

 

Purpose of the Training

To enable internal audit professionals to plan, support, and assess their organization’s IFRS conversion by understanding the phases of the process, key risk areas, control implications, and audit strategies.

 

Learning Objectives

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

• Understand the IFRS conversion lifecycle and its impact across the organization
• Identify key risk and control areas during IFRS transition
• Assess project governance and internal controls throughout the conversion
• Design and execute audit strategies to support the conversion
• Provide value-added advisory services before, during, and after implementation

 

Target Audience

• Internal auditors and audit managers
• Chief audit executives (CAEs)
• Financial and operational auditors
• Compliance and finance transformation teams
• Project assurance teams overseeing IFRS implementation

 

Training Format

• Modules: 5 structured and practical modules
• Delivery: On-site, online (live), or self-paced
• Methodology: Case studies, conversion roadmap templates, audit checklists, hands-on planning exercises

 

Course Content:

Module 1: IFRS Conversion Overview and Strategic Implications

Objectives:

• Understand the scope, drivers, and implications of converting to IFRS
• Define the internal audit function’s role in the IFRS journey

Key Topics:

• What is IFRS and why convert?
• Phases of an IFRS conversion project
• Strategic implications: financial reporting, KPIs, taxes, systems
• Internal audit’s evolving role: assurance vs. advisory
• Risk landscape during conversion

Activities:

• Review sample IFRS conversion roadmap
• Group discussion: What risks would you audit at each phase?

Module 2: Planning and Governance of the IFRS Project

Objectives:

• Evaluate the governance and project management structure of the IFRS program
• Identify risks related to program oversight, resources, and communication

Key Topics:

• Establishing effective project governance
• Roles and responsibilities: Finance, IT, Audit, Consultants
• Risk-based planning for internal audit involvement
• Change management and communication strategies
• Key success factors and red flags

Exercises:

• Audit planning checklist for IFRS project oversight
• Scenario-based review of a flawed IFRS governance structure

Module 3: Assessing System, Process, and Policy Readiness

Objectives:

• Understand how IFRS affects systems, data, and operational processes
• Identify internal audit’s role in testing system and process changes

Key Topics:

• Changes to accounting policies and financial reporting processes
• ERP/system reconfiguration and data migration risks
• Control design in newly automated processes
• Risk areas in chart of accounts redesign, mapping, and reconciliations
• Parallel reporting and dual GAAP environments

Exercises:

• Evaluate sample IFRS-configured process flow
• Group task: Identify control points in a dual-reporting environment

Module 4: High-Risk Accounting Areas and Internal Audit Focus

Objectives:

• Pinpoint the most significant technical and control risk areas during IFRS adoption
• Support technical compliance while evaluating control effectiveness

Key Topics:

• High-risk standards:
• IFRS 15 (Revenue)
• IFRS 16 (Leases)
• IFRS 9 (Financial Instruments)
• IFRS 3 (Business Combinations)
• Controls over judgments, estimates, and disclosures
• Supporting documentation and audit evidence
• Internal audit testing approaches for these areas

Exercises:

• Analyze a revenue recognition transition case
• Design a basic audit test plan for IFRS 16 implementation

Module 5: Post-Conversion Review and Continuous Assurance

Objectives:

• Support business stabilization post-conversion
• Provide ongoing assurance and continuous monitoring of IFRS compliance

Key Topics:

• Lessons learned from IFRS conversion projects
• Testing accuracy of opening balances and restated comparatives
• Controls over IFRS financial disclosures and audit trail
• Embedding continuous assurance and data analytics post-IFRS
• Communicating findings to senior management and the audit committee

Exercises:

• Post-implementation audit plan walkthrough
• Group case: Reporting control weaknesses post-IFRS transition

 

Conclusion and Certification

• Recap of internal audit’s IFRS roadmap
• Discussion of tools, templates, and continued learning resources
• Final Q&A session
• Certificate of Completion awarded

 

Optional Training Materials

• IFRS Conversion Audit Toolkit (checklists, risk register, and templates)
• Sample IFRS implementation roadmap
• Audit test scripts for high-impact IFRS areas
• Controls library for IFRS transitions