Obtaining an Understanding of Internal Control

Presented by Renee Rampulla

Presentation type = pre-record/rebroadcast

Understand internal control
Understand internal control in risk assessment as required by GAAS. Gain an overview of internal control and related key aspects so that you recognize auditor and management roles and responsibilities related to internal control and procedures involved in understanding an entity's internal control in a risk assessment.

Financial statement auditors

Internal auditors

Entity management involved in financial statement audits

• Recognize the importance of understanding internal control.
• Recall factors and procedures that an auditor should consider when obtaining an understanding of the entity and its environment, including internal control.
• Recall definitions and key aspects of internal control from various organizations.

Various definitions and aspects of internal control, including separation of duties and safeguarding of assets

Key aspects of internal control from various organizations, such as COSO, SEC, and PCAOB

Factors to consider, for example, industry, regulation, and nature of the entity

Risk assessment procedures, namely inquiry, analytical procedures, and observation and inspection, as well as brainstorming