Internal Control - Testing for Operating Effectiveness

Overview

Properly designed and effectively operating internal control over financial reporting is critical for preventing, or detecting and correcting, material misstatement. This course describes how to satisfy the audit requirements related to taking a control reliance strategy by testing the operating effectiveness of internal controls, while promoting an effective and efficient financial statement audit.

Highlights

• Generally accepted audit requirements related to testing controls for operating effectiveness
• Identifying key controls that may prove effective and efficient to test in a control reliance strategy
• Responses when deviations are discovered when evaluating the design or operating effectiveness of internal control
• Leveraging audit evidence available for Service Organization Control (SOC1) Reports
• General computer control considerations when evaluating the design and operating effectiveness of internal control over financial reporting

Prerequisites

None

Designed For

Accountants who have responsibility for evaluating the design and operating effectiveness of controls in a financial statement audit

Objectives

• Discuss generally accepted audit requirements related to testing controls for operating effectiveness
• Explain how to evaluate the results of a control reliance test for operating effectiveness
• Describe the use of Service Organization Control (SOC1) Reports on a financial statement audit
• Identify the impact of a control reliance strategy on a detailed audit plan

Preparation

None