This 2-hour session focuses on important internal control considerations. Auditing Bits in Bytes™ – A Practical Break-Down of “Real World” Best Practices Applied in Highly Successful Audits is a series of eight individual sessions that guide professionals through the complete audit process from “A to Z” – starting with Pre-Engagement Planning Activities, and going all the way through Wrap-up and Quality Control. Attempting to perform an effective and efficient audit can be intimidating and confusing, for new and experienced auditors alike.This series of eight individual segments will provide valuable tips and techniques from an experienced auditor that are needed to successfully design and perform financial statement audits in “real-life” circumstances. Extensive illustrative examples and exercises will be used to reinforce a practical understanding of the most critical principles and standards that support a high-quality, insightful, and profitable engagement. 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. Who Will Benefit 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 Key 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 - Service Organization Control (SOC) Report special considerations - 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 - Extensive illustrative examples and exercises will be used to reinforce a practical understanding of the most critical principles and standards that support a high-quality, insightful, and profitable engagement 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