Course ID: UTIC

Understanding and Testing Internal Control

Internal controls over financial reporting are used to prevent, detect, and correct misstatement. They also help to reduce the chance that fraud will occur. The auditor is required to obtain an understanding of an entity’s controls as part of the risk assessment process. This workshop will provide participants with an opportunity to explore the design of controls over the significant systems typically found in a small- to mid-size client. Participants working in industry will find this course useful in challenging the level of internal controls currently implemented in their organizations. Participants will also learn to efficiently document their understanding of the controls and determine where it is either necessary or efficient to test them. This course focuses on the updated 2013 COSO Framework. It has been updated for SAS 132 on the auditor’s consideration of an entity’s ability to remain a going concern as well as for the new developments in handling cyber risk.


LEARNING OBJECTIVES
  • Participants will be able to:
  • Apply the five COSO elements of internal control
  • Differentiate between understanding and testing internal controls
  • Document the understanding of internal controls at the appropriate level
  • Test and document the results of tests of internal controls
  • Issue an AU 265 report

MAJOR TOPICS
  • 2013 COSO Framework
  • Understanding the design of controls at the entity level and at the activity (financial statement assertion) level with an emphasis on manual control activities
  • Determining whether controls have been implemented
  • Effective and efficient tests of controls
  • Multi-purpose tests
  • Documentation techniques
  • Use of service auditor reports (AU 402)
  • AU 265 reporting requirements

DESIGNED FOR
• Audit practitioners working on audits of non-public companies • Accountants in industry who want to improve their entity's internal controls

FIELD OF STUDY
Auditing

PREREQUISITES
Basic audit course or experience

COURSE PRODUCER
Loscalzo Associates

CPE CREDITS
8.0

LEVEL
Intermediate

This course is available for your group as:

Group Live
 

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