Course Introduction
Debt management and borrowing activities can have a significant effect on an organization’s liquidity, financial sustainability, credit profile, financing costs, and long-term financial position. The Debt Management and Borrowing Audit Training Course provides participants with practical knowledge and audit techniques for evaluating borrowing decisions, debt governance, financing controls, loan transactions, interest calculations, repayment obligations, and compliance with approved debt policies and financing agreements.
Effective debt auditing requires auditors to understand the complete borrowing lifecycle, from financing needs and approval through negotiation, drawdown, accounting, servicing, refinancing, modification, and final repayment. Participants will learn how to assess whether borrowing is properly authorized, economically justified, accurately recorded, supported by appropriate documentation, and consistent with applicable internal policies, delegated authorities, budgets, and financing arrangements.
The course examines the audit of loans, overdrafts, bonds, credit facilities, leases, guarantees, and other financing arrangements. Participants will develop techniques for verifying principal balances, interest rates, fees, repayment schedules, maturity dates, collateral arrangements, and other contractual terms. Particular attention is given to reconciling debt records with lender statements, bank confirmations, financing agreements, accounting records, and financial reporting disclosures.
Debt-related risks extend beyond the existence and accuracy of outstanding balances. Auditors must also consider liquidity pressures, refinancing requirements, covenant breaches, interest-rate exposure, foreign currency exposure, concentration of lenders, unauthorized borrowing, undisclosed obligations, and inappropriate debt classification. The course therefore provides a broader risk-based framework for evaluating debt sustainability, financial exposures, and the effectiveness of management controls.
Technology has transformed debt administration through ERP systems, treasury management platforms, automated interest calculations, electronic banking, digital loan documentation, dashboards, and data analytics. The course explores how auditors can use these technologies to improve debt testing while addressing risks involving system interfaces, data integrity, automated calculations, access rights, cybersecurity, and unauthorized changes to financing records. Participants will also consider emerging analytical and artificial intelligence tools for debt monitoring and audit procedures.
By the end of the course, participants will be able to conduct structured and risk-based audits of debt management and borrowing activities, evaluate financing controls, verify debt balances and obligations, assess covenant and liquidity risks, identify unusual borrowing activity, and communicate significant findings. Practical exercises and case studies enable participants to connect debt transactions, contractual evidence, accounting records, financial risks, and management decisions into a comprehensive audit approach.
Duration
5 days
Who Should Attend
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Internal auditors responsible for auditing debt and borrowing activities.
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External auditors reviewing loans, financing arrangements, and debt disclosures.
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Treasury managers responsible for borrowing and financing decisions.
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Finance managers overseeing organizational debt portfolios and funding requirements.
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Financial controllers responsible for debt accounting and reporting.
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Accountants responsible for loan schedules, interest calculations, and debt reconciliations.
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Risk management professionals assessing financial and refinancing risks.
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Compliance professionals monitoring borrowing policies and financing agreements.
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Treasury and cash management professionals involved in funding arrangements.
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Financial analysts evaluating debt costs, maturity profiles, and financing structures.
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Budget officers responsible for debt-funded expenditure and borrowing plans.
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Audit committee members overseeing significant financing and financial risks.
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Fraud investigators examining unauthorized borrowing or financing irregularities.
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Professionals involved in covenant monitoring and lender reporting.
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Finance and audit professionals seeking specialized debt audit skills.
Course Objectives
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Develop a comprehensive understanding of debt management, borrowing processes, financing structures, and related audit objectives.
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Evaluate whether borrowing decisions are properly authorized, appropriately documented, financially justified, and consistent with approved policies.
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Apply risk-based audit techniques to loans, overdrafts, bonds, credit facilities, leases, guarantees, and other financing arrangements.
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Verify debt balances, principal movements, interest charges, fees, repayments, maturities, and contractual obligations using reliable audit evidence.
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Assess controls over debt initiation, approval, drawdown, recording, servicing, reconciliation, modification, refinancing, and repayment.
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Evaluate compliance with borrowing limits, financial covenants, lender conditions, delegated authorities, and internal financing requirements.
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Identify risks associated with refinancing, interest-rate changes, foreign currency exposure, collateral, guarantees, lender concentration, and undisclosed obligations.
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Apply data analytics, ERP systems, treasury platforms, and automated monitoring techniques to identify unusual debt transactions and financing exceptions.
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Assess cybersecurity, system access, automated calculations, data integrity, and technology risks affecting debt records and borrowing controls.
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Prepare clear audit findings and practical recommendations that strengthen debt governance, financing controls, financial reporting, liquidity management, and accountability.
Comprehensive Course Outline
Module 1: Debt Management and Borrowing Audit Fundamentals
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Principles of debt management, borrowing governance, financing strategy, financial sustainability, and audit oversight.
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Types of borrowing including loans, overdrafts, bonds, credit facilities, leases, guarantees, and structured financing arrangements.
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Debt audit objectives, risk-based planning, materiality, professional skepticism, and assessment of significant financing risks.
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Understanding debt policies, borrowing authorities, approval requirements, financing limits, reporting responsibilities, and governance structures.
Module 2: Debt Governance, Policies, and Borrowing Controls
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Evaluating debt governance frameworks, board and management responsibilities, financing policies, and borrowing decision processes.
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Auditing delegated borrowing authorities, approval limits, lender selection, financing negotiations, and transaction authorization procedures.
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Assessing segregation of duties between borrowing approval, transaction execution, accounting, reconciliation, covenant monitoring, and reporting.
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Testing preventive and detective controls designed to prevent unauthorized borrowing, inaccurate debt records, and inappropriate financing arrangements.
Module 3: Borrowing Planning, Approval, and Financing Transactions
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Auditing borrowing needs, financing plans, debt budgets, cash requirements, and management assessments supporting financing decisions.
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Reviewing loan applications, financing proposals, approval documents, lender correspondence, term sheets, and executed agreements.
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Testing debt drawdowns, proceeds received, utilization of borrowed funds, transaction dates, and compliance with approved financing purposes.
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Evaluating borrowing costs, arrangement fees, commissions, transaction expenses, and other costs associated with obtaining financing.
Module 4: Debt Balances, Repayments, and Reconciliations
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Verifying principal balances, repayments, maturity dates, interest accruals, fees, and outstanding obligations against independent evidence.
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Reconciling debt registers and accounting records with lender statements, bank records, financing agreements, and external confirmations.
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Testing scheduled and unscheduled repayments for authorization, accuracy, completeness, and correct accounting treatment.
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Investigating unexplained differences, stale balances, unrecorded obligations, unusual repayments, and discrepancies between lender and internal records.
Module 5: Interest, Fees, and Debt Cost Auditing
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Auditing interest calculations using contractual rates, benchmark rates, repayment schedules, compounding arrangements, and applicable terms.
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Testing commitment fees, arrangement fees, penalties, restructuring costs, legal costs, and other financing-related charges.
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Evaluating the accuracy and completeness of accrued interest, prepaid costs, amortized financing costs, and related accounting entries.
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Using analytical procedures to identify unusual interest movements, unexpected borrowing costs, and inconsistencies with contractual financing terms.
Module 6: Covenants, Compliance, and Debt Risk Assessment
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Reviewing financial and non-financial covenants contained in loan agreements, bonds, credit facilities, and other financing contracts.
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Testing covenant calculations using reliable financial information and evaluating whether breaches are identified and reported promptly.
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Assessing compliance with borrowing limits, security requirements, reporting obligations, permitted-use restrictions, and lender conditions.
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Evaluating management responses to covenant breaches, waivers, amendments, defaults, refinancing pressures, and other financing risks.
Module 7: Liquidity, Refinancing, Interest Rate, and Foreign Currency Risks
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Assessing debt maturity profiles, refinancing requirements, liquidity gaps, repayment concentrations, and short-term funding pressures.
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Auditing exposure to variable interest rates, benchmark movements, refinancing costs, and changes in financing conditions.
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Reviewing foreign currency borrowing, exchange-rate exposure, remeasurement, repayment risks, and related financial reporting implications.
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Evaluating debt concentration, lender dependency, collateral requirements, guarantees, and other factors affecting financial resilience.
Module 8: Fraud Risks, Technology, Cybersecurity, and Emerging Debt Issues
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Identifying risks involving unauthorized borrowing, fictitious financing arrangements, concealed liabilities, fraudulent lender documentation, and management override.
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Auditing ERP systems, treasury management systems, loan-management platforms, automated debt schedules, and electronic financing workflows.
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Evaluating system access, privileged users, automated interest calculations, data interfaces, cybersecurity controls, and unauthorized changes to debt records.
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Applying data analytics, automation, artificial intelligence, and continuous monitoring to identify unusual borrowing activity and debt-management exceptions.
Module 9: Debt Accounting, Financial Reporting, and Audit Evidence
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Auditing debt classification, recognition, measurement, interest expense, financing costs, current and non-current obligations, and related disclosures.
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Evaluating accounting records against financing agreements, lender confirmations, repayment schedules, bank statements, and supporting documentation.
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Assessing completeness of liabilities, guarantees, commitments, contingent obligations, covenant disclosures, and significant financing arrangements.
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Preparing audit evidence matrices and working papers that clearly connect debt risks, procedures, exceptions, evidence, and audit conclusions.
Module 10: Debt Audit Reporting, Remediation, and Practical Case Studies
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Developing audit findings involving unauthorized borrowing, weak controls, inaccurate balances, covenant breaches, excessive costs, and liquidity risks.
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Performing root cause analysis and developing practical recommendations for strengthening debt governance, monitoring, and financial controls.
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Establishing continuous debt monitoring through maturity dashboards, covenant alerts, refinancing indicators, exception reports, and management review.
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Applying integrated case studies involving loan transactions, covenant testing, interest calculations, refinancing risks, debt reconciliations, and financial reporting issues.
Training Approach
This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.
Tailor-Made Course
This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: training@upskilldevelopment.com Tel: +254 721 331 808
Training Venue
The training will be held at our Upskill Training Centre. We also offer training for a group (at a discount of 10% to 50%) at requested location all over the world. The Onsite course fee covers the course tuition, training materials, two break refreshments, buffet lunch, airport transfers, Upskill gift package, and guided tour.
Visa application, travel expenses, dinners, accommodation, insurance, and other personal expenses are catered by the participant
Certification
Participants will be issued with Upskill certificate upon completion of this course.
Airport Pickup and Accommodation
Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: training@upskilldevelopment.com, +254 721 331 808
Terms of Payment:
Unless otherwise agreed between the two parties’ payment of the course fee should be done 3 working days before commencement of the training so as to enable us to prepare better.
