Take Control of Your Audit - Avoid Common Internal Control Missteps

Overview

Why is it important to understand internal controls?

You may wonder why you are required to spend time on every audit dealing with internal control and may question its usefulness. Regardless of the size of your client or audit budget, there are specific requirements in the standards related to auditing internal control over financial reporting. In this course, you will learn about the impact internal control has on your audit engagements, the common misconceptions detected through peer review, and how to avoid them in your practice.

Take control of your audit

Complete this course to help you improve audit quality by becoming aware of and avoiding common financial statement audit missteps related to internal control over financial reporting.

Highlights

Key Topics

• The audit risk model
• Key steps in evaluating internal control
• Missteps in evaluating internal control
• Linkage between AU-C and AU-330

Prerequisites

None

Designed For

Who Will Benefit

Practitioners who perform audit engagements

Objectives

Learning Outcomes

• Recall the definitions of control, control risk, and what encompasses a client's internal control.
• Recall the intent of AU-C section 315A, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement, and AU-C section 330, Performing Audit Procedures in Response to Assessed Risks and Evaluating the Audit Evidence Obtained, including the interpretation of requirements.
• Recognize auditors' responsibilities when gaining an understanding of a client and its internal control.
• Recognize the impact of a client's internal control on the risk assessment and the nature, timing, and extent of further procedures.