Description
Delivered as an eight-part on-demand learning program, Auditing Bits in Bytes™ is a practical break-down of “real world” best practices applied in highly successful audits. The courses guide professionals through the complete audit process from start to finish, from pre-engagement planning activities to to wrap-up and quality control.
8, 2-hour modules (Complete Package normally $495)
- Prime Global Discount Price – $330
- Groups of 10 or more $250
- Groups of 25 or more $175
Auditing Bits in Bytes™ Session 1: Pre-Engagement Planning Activities
Instructor(s):
Jennifer Louis
This 2-hour session is designed to provide participants with a solid understanding of the important judgment calls that are made before the audit engagement even begins. While these decisions are made by the audit partner/manager, the impact of these conclusions has a direct impact on the entire engagement team.
Professional judgment calls at this early stage influence the auditor’s assessed risk of material misstatement (i.e., “what could go wrong” in the client’s financial statements due to fraud or error). In addition, safeguards to protect and preserve threats to independence and objectivity are designed at this stage of the audit.
DETAILS
INTEREST
Accounting & Auditing
T Shaped Professional Strategic and Critical Thinking
CPE FIELD OF STUDY
Auditing (2.0 Credits)
LEARNING OBJECTIVES
Describe the important activities that are performed before the audit engagement even begins, such as gathering information about engagement risk
Explain the important considerations in making engagement acceptance and continuance decisions, including evaluating independence
Define what should be communicated when establishing and understanding with the client, including when nonattest services are provided for an attest client
Recognize the professional judgments made early in the audit that establish the foundation for a high quality and profitable engagement, including initial and group financial statement audit engagements
MAJOR TOPICS
Engagement Acceptance/Continuance Decisions - Documentation requirements and key engagement risk considerations
Independence & Objectivity - Identifying threats and implementing appropriate safeguards to mitigate or eliminate them to comply with current professional and regulatory standards
Establishing an Understanding with the Client - What is important to communicate to clients and why, including scope of both non-attest and attest services and responsibilities of client management and accountants
Initial Audits – Special considerations of a successor auditor
Group Audits – Clarifying pre-engagement roles and responsibilities of group and component auditors in audits of group financial statements
Extensive illustrative examples will be used to reinforce a practical understanding of the most critical principles and standards that support a high-quality, insightful, and profitable engagement
Auditing Bits in Bytes™ Session 2: Preliminary Planning Activities
Instructor(s):
Jennifer Louis
This 2-hour session focuses on the initial information that is gathered and important conclusions that are reached at the on-set of engagement planning and the performance of certain risk assessment procedures. This phase of the engagement sets the stage for how much effort will be invested in evaluating the design and implementation of internal controls (which is covered in Session 3 of this series).
Key professional judgments made at this stage provide the foundation and rationale for risk assessment conclusions that are ultimately used to design the nature, timing and extent of further audit procedures (which is covered in Session 4 of this series). One of the most important learning points that participants will take away from this session will be the recognition that these preliminary activities are not just “check off the box” tasks, but are critical to early judgment calls about risk of material misstatement, which directly influences the audit effectiveness and efficiency.
DETAILS
INTEREST
Accounting & Auditing
T Shaped Professional Strategic and Critical Thinking
CPE FIELD OF STUDY
Auditing (2.0 Credits)
LEARNING OBJECTIVES
Recognize how preliminary planning and risk assessment activities are not just “check off the box” tasks, but meaningful judgments that directly influence audit effectiveness
Describe the initial information that should be gathered about the entity and its’ environment to have a proper basis for important decisions made in early planning and risk assessment
Recognize the importance of key materiality and performance materiality judgments, and resulting impact on risk assessment and the detailed audit plan
Describe how proper preliminary analytic review sets the stage for how much audit effort will be spent on the engagement
Identify ways to avoid common deficiencies in identifying and responding to fraud risk on the audit
Describe the factors that should be considered when designating significant audit areas
MAJOR TOPICS
Gaining an Understanding of the Entity & Environment - What should be documented and how it relates to identifying areas of higher risk of material misstatement
Materiality & Performance Materiality - How these are not just rote calculations on a standard form, but important and key decisions that set the stage for conclusions throughout the entire audit
Preliminary Analytic Procedures - Why this analysis assists the auditor in identifying significant audit areas and "what could go wrong" in the client's financial statements due to fraud or error
Fraud Risk Considerations - Common peer review deficiencies identified related to these important required procedures
Identifying Significant Audit Areas - How to identify significant accounts, classes or transactions and disclosures, and what that means to further risk assessment procedures
Extensive illustrative examples will be used to reinforce a practical understanding of the most critical principles and standards that support a high-quality, insightful, and profitable engagement
Auditing Bits in Bytes™ Session 3: Internal Control Considerations
Instructor(s):
Jennifer Louis
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.
DETAILS
INTEREST
Accounting & Auditing
T Shaped Professional Strategic and Critical Thinking
CPE FIELD OF STUDY
Auditing (2.0 Credits)
LEARNING OBJECTIVES
Describe the requirement to evaluate the design and implementation of internal control as part of the risk assessment process
Identify the considerations when deciding whether it is necessary or desirable to test the operating effectiveness of internal controls to reduce assessed risk of material misstatement
Recognize special considerations, such as use of service organization control reports or varying audit objectives
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
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
Special considerations: ◦ Service Organization Control (SOC) Report special considerations ◦ Smaller entity considerations ◦ Varying audit objectives
Extensive illustrative examples will be used to reinforce a practical understanding of the most critical principles and standards that support a high-quality, insightful, and profitable engagement
Auditing Bits in Bytes™ Session 4: Assessing and Responding to Risk
Instructor(s):
Jennifer Louis
This 2-hour session focuses on how to appropriately identify, evaluate, document and respond to risks of material misstatement due to either fraud or error in order to effectively and efficiently design the nature, timing and extent of further audit procedures (tests of controls for operating effectiveness and substantive audit procedures).
DETAILS
INTEREST
Accounting & Auditing
Future Ready
T Shaped Professional Strategic and Critical Thinking
CPE FIELD OF STUDY
Auditing (2.0 Credits)
LEARNING OBJECTIVES
Describe how to properly identify, evaluate, document and respond to risks of material misstatement due to either fraud or error
Recognize best practices for effective and efficient engagement team discussions and other risk assessment activities
Identify how to link assessed risk of material misstatement to the design of the nature, timing and extent of further audit procedures
MAJOR TOPICS
Audit Risk Components: Inherent Risk, Control Risk, & Detection Risk – Understanding the underlying intent of each of the components, and key considerations in properly assessing and documenting the basis for conclusions
Identifying & Evaluating Risk – How to synthesize all the information gathered throughout the risk assessment process into a concise summary of risk assessment conclusions
Determining Significant Risks Requiring Special Audit Considerations – What differentiates this type of risk from other types of risks of material misstatement, and what that means in regards to the nature, timing and extent of further audit procedures
Engagement Team Discussion – Common deficiencies in the performance of this required important activity
Linking Assessed Risk of Material Misstatement to the Detailed Audit Plan – How judgment calls directly influence the effectiveness and efficiency of the detailed audit plan
Extensive illustrative examples will be used to reinforce a practical understanding of the most critical principles and standards that support a high-quality, insightful, and profitable engagement
Auditing Bits in Bytes™ Session 5: Substantive Testing
Instructor(s):
Jennifer Louis
This 2-hour session focuses on performing the substantive audit procedures outlined in the detailed audit plan. Common deficiencies in performing and documenting these further audit procedures will be discussed.
DETAILS
INTEREST
Accounting & Auditing
Future Ready
T Shaped Professional Strategic and Critical Thinking
CPE FIELD OF STUDY
Auditing (2.0 Credits)
LEARNING OBJECTIVES
Identify steps to design and perform substantive audit procedures comprising the detailed audit plan
Identify common deficiencies in performing and documenting further audit procedures, including both tests of details and substantive analytic procedures
Recognize how to comply with specific requirements for extended tests of details performed to address higher risk of material misstatement, including external confirmation and sampling
MAJOR TOPICS
Nature, Timing & Extent of Substantive Testing – How to gather sufficient and appropriate audit evidence to support the audit opinion
Substantive Analytic Review – Typical deficiencies in designing, documenting and leveraging audit evidence gathered through these further audit procedures
Confirmations – Mistakes made in designing and evaluating the results of third-party confirmations as a form of persuasive audit evidence
Sampling Considerations – Common misunderstandings related to designing, performing and concluding on tests of details
Extensive illustrative examples will be used to reinforce a practical understanding of the most critical principles and standards that support a high-quality, insightful, and profitable engagement
Auditing Bits in Bytes™ Session 6: Engagement Wrap-Up
Instructor(s):
Jennifer Louis
This 2-hour session focuses on all activities that occur during the wrap-up phase of the engagement. This aspect of an audit engagement is where all good intentions are at risk of unraveling and creating deficiencies in audit quality and compliance with professional and regulatory standards.
DETAILS
INTEREST
Accounting & Auditing
T Shaped Professional Strategic and Critical Thinking
CPE FIELD OF STUDY
Auditing (2.0 Credits)
LEARNING OBJECTIVES
Recognize how lack of audit documentation may unravel all good intentions as it relates to audit quality and profitability
Identify circumstances where modification of the standard audit report would be appropriate
Recall all activities that occur during the engagement wrap-up phase of the engagement, which includes general audit procedures, audit report drafting, and audit report release
MAJOR TOPICS
Audit Documentation – Key considerations in quality control
Audit Report Dating – How to handle “real-life” issues/concerns encountered by firms (e.g., issuing multiple audit reports with an appropriate audit report date, subsequent events identified after audit report date but prior to report release date, sufficiently fulfilling the document completion date requirements, etc.)
Audit Report Modifications – Appropriate circumstances to add emphasis-of-matter or other-matter paragraphs, or when to modify the opinion
General Procedures Considerations: Going Concern, Subsequent Events, Attorney’s Letters, Management Representation Letter, and more!
Extensive illustrative examples will be used to reinforce a practical understanding of the most critical principles and standards that support a high-quality, insightful, and profitable engagement.
Auditing Bits in Bytes™ Session 7: Identifying, Evaluating and Communicating Internal Control Deficiencies
Instructor(s):
Jennifer Louis
This 2-hour session focuses on how to properly fulfill the requirements for identifying, evaluating and communicating internal control deficiencies identified during the course of the financial statement audit.
DETAILS
INTEREST
Accounting & Auditing
T Shaped Professional Strategic and Critical Thinking
T Shaped Professional Communication
CPE FIELD OF STUDY
Auditing (2.0 Credits)
LEARNING OBJECTIVES
Describe how to properly satisfy the requirement to evaluate and communicate internal control matters noted during the course the financial statement audit
Recognize considerations in properly categorizing internal control deficiencies as an inconsequential matter, significant deficiency, or material weakness
Identify significant audit matters to communicate with those charged with governance
Recognize ways for reporting entities to assume greater responsibility for internal control over financial reporting
MAJOR TOPICS
Identifying & Evaluating Internal Control Deficiencies – Emphasizing the importance of identifying both design and operating effectiveness deficiencies during the course of the audit, and how to properly categorize deficiencies as inconsequential, significant or material
Considering the Impact of Internal Control Deficiencies - The impact on the auditor’s conclusions related to risk of material misstatement, sufficient appropriate audit evidence to support the financial statement audit opinion, and independence
Communicating Internal Control Deficiencies to Those Charged with Governance – How to fulfill requirements in a way that emphasizes to the client the value and importance of giving proper dedication to understanding, consciously evaluating and concluding on an appropriate response to identified deficiencies
Communicating Other Significant Audit Matters to Governance – What to communicate and when
Extensive illustrative examples will be used to reinforce a practical understanding of the most critical principles and standards that support a high-quality, insightful, and profitable engagement
Auditing Bits in Bytes™ Session 8: Engagement Wrap-up and Quality Control Considerations
Instructor(s):
Jennifer Louis
This 2-hour session emphasizes the key activities that ensure that appropriate quality control procedures were performed on the financial statement audit.
DETAILS
INTEREST
Accounting & Auditing
T Shaped Professional Strategic and Critical Thinking
CPE FIELD OF STUDY
Auditing (2.0 Credits)
LEARNING OBJECTIVES
Identify how to leverage the audit documentation and review process to ensure a quality and profitable engagement
Describe key activities that ensure appropriate quality control procedures were performed on the financial statement audit
Recognize common peer review deficiencies that quality control policies and procedures should seek to avoid
MAJOR TOPICS
Audit Documentation & Review – Using the workpaper documentation and review process to ensure sufficient compliance professional, technical, ethical and regulatory standards
Statement of Quality Control Standards – An overview of the AICPA standard that clarifies and enhances quality control requirements for CPA Firms performing financial statement audits
Engagement Quality Control Review – When this may be necessary, who can perform most effectively perform this review, what he/she should review, and documentation considerations
Peer Review – Common deficiencies identified related to financial statement audits, and how CPA firms can strengthen quality control policies and procedures to combat them
Extensive illustrative examples will be used to reinforce a practical understanding of the most critical principles and standards that support a high-quality, insightful, and profitable engagement