Auditing Bits in BytesT Session 3: Internal Control Considerations

This session includes both evaluating the design and implementation of internal controls, which is required on all engagements. It also includes testing controls for operating effectiveness, which should be considered as part of the risk assessment procedures.

• Anyone who is new to auditing or desires a refresher in how to perform effective and efficient financial statement audits for non-issuers in accordance with professional and regulatory standards.

• Describe the requirement to evaluate the design and implementation of internal control as part of the risk assessment process
• Identify the considerations when deciding whether it is necessary or desirable to test the operating effectiveness of internal controls to reduce assessed risk of material misstatement
• Recognize special considerations, such as use of service organization control reports or varying audit objectives

• Evaluating the Design & Implementation of Internal Controls The typical types and flow of an internal control system
• Documenting an understanding of the design of internal control, including both entity-level and transactional-level internal controls
• Identifying the key controls that significantly reduce the possibility of material misstatement due to fraud or error
• Appropriately verifying that key controls have been implemented
• IT control considerations, including general and application controls
• Testing Controls for Operating Effectiveness What audit evidence is required to reduce control risk below high
• Understanding when a control reliance strategy may be either necessary or desirable in an audit plan
• The impact of reduced control risk on the nature, timing and extent of substantive audit procedures
• Special considerations Service Organization Control (SOC) Report special considerations
• Smaller entity considerations
• Varying audit objectives
• Extensive illustrative examples will be used to reinforce a practical understanding of the most critical principles and standards that support a high-quality, insightful, and profitable engagement