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Event Description

An important internal control procedure includes both evaluating the design and implementation of internal controls, which is required on all financial statement audit engagements. An important internal control consideration includes whether to test the operating effectiveness of controls for control reliance, which should be considered as part of the risk assessment procedures to properly evaluate audit risk. Internal control is one of the most commonly misunderstood and misapplied aspects of the financial statement audit process, particularly given the recent significant changes in auditing standards. Mistakes in this area have the greatest likelihood of being identified as deficiencies in peer or regulatory review, but also directly impact audit efficiency.

Designed For

Anyone responsible for evaluating internal control design or operating effectiveness on a financial statement audit

Objectives

  • Discuss the highlights of the COSO Internal Control – Integrated Framework
  • Explain requirements for evaluating the design, implementation and operating effectiveness of internal control over financial reporting
  • Discuss supplemental guidance on the monitoring component of internal control
  • Differentiate between various audit requirements, such as those related to Sarbanes-Oxley and Single Audit

Major Subjects

  • Documenting an understanding of the design of internal control, including both entity-level and transactional-level internal controls
  • Identifying and evaluating key controls that significantly prevent or detect and correct risks of material misstatement due to fraud or error in a timely manner during the course of normal operations
  • Appropriately verifying that key controls have been implemented
  • IT control considerations, including general and application controls
  • Service Organization Control Report special considerations
  • Obtaining sufficient and appropriate of the operating effectiveness of internal controls for a control reliance strategy, when necessary or desirable
  • Impact of a control reliance strategy on the nature, timing and extent of substantive audit procedures
  • Comparing and contrasting the purpose and requirements related to tests of controls and tests of compliance in a Single Audit

Prerequisites

None

Instructions

When you purchase a Surgent CPE on-demand course, it must be taken by June 30, 2019, to receive credit.
Within 5 minutes after your purchase, you will receive an email from info@surgent.com that explains how to access your course and materials.
Once you complete a course, please allow up to 30 days to receive you certificate of completion.
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