Back Search

Overview

4.0 Credits
ONLINE

Internal control is a process effected by those charged with governance, management, and other personnel that is designed to provide reasonable assurance about the achievement of the entity's objectives with regard to the reliability of financial reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations. Internal control over safeguarding of assets against unauthorized acquisition, use, or disposition may include controls relating to financial reporting and operating objectives. 

The auditor should obtain an understanding of internal control relevant to the audit. Although most controls relevant to the audit are likely to relate to financial reporting, not all controls that relate to financial reporting are relevant to the audit. It is a matter of the auditor's professional judgment whether a control, individually or in combination with others, is relevant to the audit

When obtaining an understanding of controls that are relevant to the audit, the auditor should evaluate the design of those controls and determine whether they have been implemented by performing procedures in addition to inquiry of the entity's personnel.

Objectives

This program will provide the auditor with an approach to:
a) Obtain an understanding of the control environment
b) Ascertain the 5 components and the 17 principles of internal control
c) Determine the relevant controls related to critical audit areas
d) Assess control risk by evaluating those controls that are effective and those that are not effective or missing
e) Determine if, when, and how to test controls and reduce control risk

Major Topics

• Review of the audit requirements stated in the auditing standards regarding internal control activities 
• Analysis of the control environment, concentrating on privately-owned businesses
• Detailed discussion of an effective system of internal control and related control activities as detailed in the updated COSO report
• Sample risk assessment procedures to determine control risk for all major assertions
• Discussion of how to reduce control risk to below maximum
• Specific tests of controls that can be beneficial to a financial audit
• Discussion of the requirements to test controls for Governmental audits

Designed For

Auditors will be able to plan their audits to include only effective procedures for obtaining an understanding of the client’s control environment and testing only relevant controls that will reduce other substantive procedures.

Prerequisite

None

Advanced Preparation

None
Add to Cart