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
Learning Objectives
  • 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: August 9, 2023

Included In Certifications

This course is included in the following Certification Programs:

13 CoursesAudit Training Certification - Level 1 - Beginning Staff

  1. Professional Skepticism - Creating a Mindset for Finding Fraud and Error
  2. Audit Documentation - Creating Workpapers That Pass Review
  3. Adapting to the Engagement - Differentiating the Requirements of Preparations, Compilations, Reviews, and Audits
  4. The Audit Risk Model - Understanding Foundational Principles
  5. Internal Control Fundamentals - Satisfying Audit Requirements for Evaluating Design and Implementation
  6. Auditing Cash - Applying Basic Skills to the Starting Point of Any Audit
  7. Auditing PP&E, Including Leases under Topic 842 - Digesting the Risks of Improper Treatment of Tangible Long-Lived Assets
  8. Auditing Inventory - Performing Required Observations and Other Common Procedures
  9. Analytical Procedures - Comprehending Financial Statement Audit Fundamentals
  10. Audit Reporting Fundamentals - Introducing Core Concepts in the Audited Financial Statement Drafting and Issuance Process
  11. AICPAs Code of Professional Conduct - Exploring the Foundational Principles Underlying the CPA Profession as a Whole
  12. Accounting Update - Hot Topics for Preparing Current Period Financial Statements
  13. Auditing & Attest Update - Hot Topics for Current Period Audits and Other Attest Services
12 Reviews (53 ratings)

Reviews

5
Anonymous Author
For me this was a very informative class but it was also tough. Had to pay careful attention to distinctions between different forms of internal controls and what they accomplish.
5
Anonymous Author
This was a very informative course and provided great information on what is required for evaluating design and implementation of internal controls.
4
Anonymous Author
This course was a helpful refresher of internal controls for the purpose of preparing of reviewing our internal processes and procedures.
5
Anonymous Author
Jennifer knows her stuff and can easily rely her knowledge. Slides are helpful in getting the information across.
4
Anonymous Author
The course was well done. I appreciate the volume of information, but the jokes are quite corny.
5
Anonymous Author
It is a goid thing pretty detailed explanation. Goodcrefresher for cpa exam matetial.
5
Anonymous Author
This course provides a good overview of internal controls. I recommend this course.
5
Anonymous Author
The examples of various issues and compensating controls was helpful reminder.
5
Anonymous Author
Material and content was appropriate and instructor was knowledgeable.
5
Anonymous Author
Internal controls are so important so it was helpful to get a reminder.
5
Anonymous Author
Useful and helpful as always. Jennifer is a great speaker as well.
3
Anonymous Author
Some of the questions in the final exams was not so clear to me.
show all reviews
Prerequisites
Course Complexity: Foundational

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

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
  Course Overview CPE
Course Syllabus
INTRODUCTION AND OVERVIEW
  Learning Objectives to the Internal Control Fundamental1:50
  Introduction to Internal Control11:58
  Evaluating Design and Implementation3:46
  Overview Of Indirect Entity - Level Controls17:30
  Overview of Control Activities11:54
  Focus on IT Processes and Related Controls4:10
  Sample Ways to Document the Design and Implementation of Internal Controls16:41
  Key Controls Related to Cash Receipts4:30
  Exercising - What Control is Missing?13:08
  Smaller Entity Considerations15:12
Continuous Play
  Internal Control Fundamentals - Satisfying Audit Requirements for Evaluating Design and Implementation1:40:39
Supporting Materials
  Slides: Internal Control Fundamentals - Satisfying Audit Requirements for Evaluating Design and ImplementationPDF
  Internal Control Fundamentals - Satisfying Audit Requirements for Evaluating Design and Implementation Glossary/IndexPDF
Review And Test
  REVIEW QUESTIONSquiz
 FINAL EXAMexam