5 - Governance & The IIA’s Three Lines Model | Topic 3 – Part A

Who directs the organization? Who manages its risks? And who provides independent assurance? In Topic 3 – Part A of ACCT419 – Internal Audit I, we begin our journey through Governance, Risk Management, and Internal Control (GRC) by focusing on Governance and the roles different organizational stakeholders play in making it effective. The video explores the relationship: Governance → Risk Management → Internal Control and the important two-way flow of: Top-Down → Direction & Authority Bottom-Up → Accountability & Reporting We then examine the two broad dimensions of governance: Strategic Direction + Governance Oversight and explore how the Board, Management, and Internal Audit contribute differently to effective governance. At the center of the video is The IIA’s Three Lines Model, distinguishing: 🔹 Governing Body / Board — direction, delegation, and oversight 🔹 First Line Roles — delivery of products/services and day-to-day management of risk 🔹 Second Line Roles — expertise, support, monitoring, and challenge on risk-related matters 🔹 Third Line Roles – Internal Audit — independent and objective assurance and advice We also explore the roles of stakeholders, risk appetite and tolerance, accountability, external assurance providers, and the importance of coordination in avoiding assurance/audit fatigue. The objective is not simply to memorize the Three Lines. It is to understand: Who directs → Who manages → Who oversees → Who is accountable → Who independently assures The key message: Good governance depends on clear direction, defined responsibilities, accountability, effective risk management and control, and independent assurance. This video is part of Learn Internal Audit with Dr. Emad, connecting our ACCT419 classroom learning with professional Internal Audit practice. From the Classroom to the Profession. From Assurance to Impact. Dr. Emad Awadallah Associate Professor of Accounting #LearnInternalAuditWithDrEmad