Course ID: ABB3

Auditing Bits in Bytes – Segment 3: Evaluating the Design & Operating Effectiveness of Internal Control to Assess Audit Risk


Get a practical break-down of “Real World” best practices applied in highly successful audits. Attempting to perform an effective and efficient audit can be intimidating and confusing, for new and experienced auditors alike. This series of eight individual segments will provide valuable tips and techniques from an experienced auditor that are needed to successfully design and perform financial statement audits in “real-life” circumstances. Extensive illustrative examples and exercises will be used to reinforce a practical understanding of the most critical principles and standards that support a high-quality, insightful, and profitable engagement. (1-2 CPE hours)

This 2-hour session focuses on important internal control considerations. This includes both evaluating the design and implementation of internal controls, which is required on all engagements. It also includes testing controls for operating effectiveness, which should be considered as part of the risk assessment procedures. This area is one of the most commonly misunderstood and misapplied aspects of the audit process, particularly given the recent significant changes in auditing standards. Inappropriate or inadequate judgment calls made at this stage of the engagement could have the greatest impact on financial statement audit effectiveness and efficiency. Missteps in this area also have the greatest likelihood of being identified as deficiencies in peer or regulatory review.


MAJOR TOPICS
  • Evaluating the Design & Implementation of Internal Controls
    -The typical types and flow of an internal control system
    -Documenting an understanding of the design of internal control, including both entity-level and transactional-level internal controls
    -Identifying the key controls that significantly reduce the possibility of material misstatement due to fraud or error
    -Appropriately verifying that key controls have been implemented
    -IT control considerations, including general and application controls
    -Service Organization Control (SOC) Report special considerations
  • Testing Controls for Operating Effectiveness
    -What audit evidence is required to reduce control risk below high
    -Understanding when a control reliance strategy may be either necessary or desirable in an audit plan
    -The impact of reduced control risk on the nature, timing and extent of substantive audit procedures
  • Extensive illustrative examples and exercises will be used to reinforce a practical understanding of the most critical principles and standards that support a high-quality, insightful, and profitable engagement

DESIGNED FOR
Public accountants interested in increasing the quality and profitability of audit engagements

PREREQUISITES
None

COURSE PRODUCER
Business Learning Institute

CPE CREDITS
2.0

LEVEL
Basic

This course is available to be scheduled as:

Group Live
 

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