Knowing, not hoping
Three Lines Model and internal control.
- Level
- Bitesize
- Learning time
- 1 hour 45 minutes
- Where
- Audit and Assurance
- Price
- £39
When you step up to a higher level, what you paid in the last 12 months for lower-level courses inside the bigger course comes off its price, in proportion to how much of each is inside it, whichever topic it's from. Courses at the same or a lower level don't give credit against each other. A Focus course or above always costs at least £15. Read the full terms
Certificate of Completion
Overview and Outcomes.
Overview
This module draws a clear line between reassurance, which is a feeling, and assurance, which is evidence. It defines assurance, reassurance, control and oversight precisely, introduces the strength of evidence pyramid, six sources of assurance, the assurance question chain and four board postures on trust and evidence, and uses the Post Office Horizon scandal to show why no concerns raised is not the same as safety. Everyone owns risk, and nobody marks their own homework. This module traces the three lines idea from the Institute of Internal Auditors' 2013 defence model to its 2020 Three Lines Model, walks through the diagram and its six principles, and explains why lines are roles rather than boxes. The collapse of Barings Bank shows what happens when doing and checking sit with one person. A control that is never tested is a hope. This module explains the difference between control design and operation, COSO's five components of internal control, preventive and detective, manual and automated controls, and four key controls every board member should recognise. It covers culture as the control behind controls, the annual governance statement cycle, the new Provision 29 declaration, and the Carillion assurance gap.
What you'll develop
In this Bitesize, you will develop the ability to:
- Explain the difference between reassurance and assurance, and define control and oversight precisely.
- Assess the strength of the evidence your board receives using the strength of evidence pyramid and the six sources of assurance.
- Describe the roles of the governing body, first and second line roles, internal audit and external assurance providers in the 2020 Three Lines Model.
- Compare the 2013 three lines of defence model with the 2020 Three Lines Model, including the shift from defence towards value and collaboration.
- Distinguish between the design and the operation of a control, and classify controls as preventive or detective, manual or automated.
The Modules.
1 hour 45 minutes of learning.
- 01Why Assurance Matters: Knowing, Not HopingThis module draws a clear line between reassurance, which is a feeling, and assurance, which is evidence. It defines assurance, reassurance, control and oversight precisely, introduces the strength of evidence pyramid, six sources of assurance, the assurance question chain and four board postures on trust and evidence, and uses the Post Office Horizon scandal to show why no concerns raised is not the same as safety.36 min
- 02The Three Lines ModelEveryone owns risk, and nobody marks their own homework. This module traces the three lines idea from the Institute of Internal Auditors' 2013 defence model to its 2020 Three Lines Model, walks through the diagram and its six principles, and explains why lines are roles rather than boxes. The collapse of Barings Bank shows what happens when doing and checking sit with one person.36 min
- 03Internal Control and the Annual Governance StatementA control that is never tested is a hope. This module explains the difference between control design and operation, COSO's five components of internal control, preventive and detective, manual and automated controls, and four key controls every board member should recognise. It covers culture as the control behind controls, the annual governance statement cycle, the new Provision 29 declaration, and the Carillion assurance gap.38 min
Keep going.
Part of the Audit and Assurance topic, also sold whole as Assurance that counts.
Go deeper, and pay only the difference
- You are hereBitesize, 1 hour 45 minutes, £39
- Next stepFocus, Lines of defence, 3 hours, £69. Already own the Bitesize? You pay £30.
- The whole topicExplore, Assurance that counts, 5 hours 30 minutes, £129. Already own the Bitesize? You pay £90.
When you step up to a higher level, what you paid in the last 12 months for lower-level courses inside the bigger course comes off its price, in proportion to how much of each is inside it, whichever topic it's from. Courses at the same or a lower level don't give credit against each other. A Focus course or above always costs at least £15. Prices per person. Read the full terms
Also part of: Governing with confidence, Holding to account
