Internal Control Fundamentals - Satisfying Audit Requirements for Evaluating Design and Implementation 2.5 CPE

Obtaining an understanding of the entity and its environment is part of assessing risk of material misstatement, in order to design the nature, timing and extent of further audit procedures necessary to obtain sufficient appropriate audit evidence to support the auditor’s report. A critical component of understanding the entity and its environment is to evaluate the design and implementation of internal control over financial reporting.

Major Topics:

• Responsibilities for gaining an understanding of the entity and its environment
• The inter-relationship of the five foundational components of the COSO Internal Control – Integrated Framework
• Various methods for documenting and evaluating the design and implementation of internal control over financial reporting
• Identifying critical elements of entity-level and transactional-level controls
• Case studies related to identifying deficiencies in internal control documentation

Prerequisites

No Advanced Preparation or Prerequisites are needed for this course.
Designed For: Professionals responsible for evaluating the design and implementation of internal control.

Learning Objective

• Discover and describe how to properly obtain an understanding of the entity and its environment, including internal control in order to properly assess risk of material misstatement.
• Explore and discuss the COSO Internal Control – Integrated Framework.
• Identify and explain important considerations in documenting a systems description narrative.
• Recognize and describe how to evaluate internal control design and implementation for deficiencies and how to apply insights to the process of assessing risk of material misstatement.

Last updated/reviewed: March 12, 2024