Properly designed and effectively operating internal control over financial reporting is critical for preventing, or detecting and correcting, material misstatement. This module will describe how to satisfying the audit requirements related to internal control, while promoting an effective and efficient financial statement audit.
Accountants who have responsibility for evaluating the design and operating effectiveness of controls in a financial statement audit.
- Explain the interrelationship between the five components of the COSO Internal Control – Integrated Framework
- Discuss the SAS requirements related to testing controls for operating effectiveness
- Describe the use of Service Organization Control Reports on a financial statement audit
- Identify impact of a control reliance strategy on the detailed audit plan
- Interrelationships of the COSO Internal Control – Integrated Framework
- Leveraging both preventive and detective control activities
- SAS requirements related to testing controls for operating effectiveness
- Designing the nature, timing and extent further audit procedures
- Responses when deviations are discovered when evaluating the design or operating effectiveness of internal control
- Leveraging audit evidence available through Service Organization Control Reports
- General computer control considerations
Familiarity with SASs and FASBs