On-Demand

2 CPE

Auditing Bits in Bytes™ Session 3: Internal Control Considerations

On-Demand
2 CPE
  • View Bio

    Instructor

    Jennifer
    Louis

    View Bio

    Jennifer Louis, CPA

    Bio

    Jennifer F. Louis, CPA has over 25 years of experience in designing and instructing high-quality training programs in a wide variety of technical and “soft skills” topics needed for professional and organizational success. Jennifer focuses her energy on designing and delivering high-quality and engaging accounting and auditing training. Prior to founding Emergent Solutions Group, LLC, she was Director of Audit Product Development at Surgent Professional Education.

    In 2003 she founded Emergent Solutions Group, LLC, where she focuses her energy on designing and delivering high-quality, practical and engaging accounting and auditing training. She was most recently Director of Audit Product Development at Surgent Professional Education, and prior to that served as Executive Vice President/Director of Training Services at AuditWatch, Inc., a highly-respected training and audit process consulting firm. Before joining AuditWatch, Jennifer was the Financial/Operational Audit Manager at AARP. At the start of her professional career, Jennifer was an Audit Manager for Deloitte & Touche LLP, where she frequently served as a local and national instructor. Jennifer graduated summa cum laude from Marymount University with a BBA-Accounting. She currently resides in Charlotte, NC.

This 2-hour session focuses on important internal control considerations. This 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.

This area is one of the most commonly misunderstood and misapplied aspects of the audit process, particularly given the recent significant changes in auditing standards. Inappropriate or inadequate judgment calls made at this stage of the engagement could have the greatest impact on financial statement audit effectiveness and efficiency. Missteps in this area also have the greatest likelihood of being identified as deficiencies in peer or regulatory review.

Develop a game plan for successful audits, learn more about MACPA’s Auditing Bits in Bytes™.

Learning Objectives

  • 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

Major Topics

  • 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

CPE Credits Available

2 CPE
2
Auditing

Things to Know About This Course

Course Level

  • Basic

Professional Area of Focus

  • Accounting & Auditing

Prerequisites

  • None

Advanced Preparation

None  SPEAKER BIO

Intended Audience

  • 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.

Provider

AICPA

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