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 will also learn to efficiently document their understanding of the controls and determine where it is either necessary or efficient to test them.
DESIGNED FOR
Audit practitioners working on audits of non-public companies, and Accountants in industry who want to improve their entity’s internal controls.
BENEFITS
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 reportHIGHLIGHTS
- 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
COURSE LEVEL
Intermediate
PREREQUISITES
Basic audit course or experience.
ADVANCE PREPARATION
None
ADDITIONAL NOTES
- Qualifies for Yellow Book.
Course materials are distributed electronically. To access the materials visit My Events. Download to your laptop or tablet prior to the seminar, handouts are added as received.