Understanding Key Controls for Risk of Data Misstatement Accounts 1 CPE

This introductory course takes a deep look into understanding key controls and how they link to your assessed risks of material misstatement. We will briefly cover risk assessment and the determination of the risk of material misstatement. Then, the class will dive deep into the understanding of controls and how the linkage of key controls to the risk of material misstatement at the relevant assertion is important for your audits.

Many times, an audit will have an internal control walkthrough without really addressing the key controls for the assessed risks of material misstatement. This class will use examples to show a way of distilling these walkthroughs into identifying those internal controls and how they address risks at the relevant assertion level.

The goal at the end of this course is to help you identify the key controls in your audits, to better refine your audit approach and have a more efficient audit while improving your quality.

Course Key Concept: Audit, Relevant Assertion, Internal Control, Control walkthrough, controls, IC, COSO, Assertion, Key Control, RMM, material misstatement, efficiency, quality, risk assessment.

Prerequisites

No advanced preparation or prerequisites are required for this course.

Learning Objective

• Recognize Key Controls.
• Explore the linkage between Relevant Assertion and Key Control.
• Identify the difference between a control and a process.

Last updated/reviewed: March 9, 2024