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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: June 17, 2021

Included In Certifications

This course is included in the following Certification Programs:

13 CoursesAudit Training 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

2 Reviews (12 ratings)Reviews

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
Material and content was appropriate and instructor was knowledgeable.

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 .
Course Syllabus
INTRODUCTION AND OVERVIEW
  1:24Learning Objectives to the Internal Control Fundamental
  13:06Introduction to Internal Control
  9:28Evaluating Design and Implementation
  13:40Overview Of Entity Level Controls
  4:46Risk Assessment
  11:07Overview of Control Activities
  16:57Sample Ways to Document the Design and Implementation of Internal Controls
  3:19Key Controls Related to Cash Receipts
  13:37Smaller Entity Considerations
  14:10Exercising - What Control is Missing?
Continuous Play
  1:41:34Internal Control Fundamentals - Satisfying Audit Requirements for Evaluating Design and Implementation
Supporting Materials
  PDFSlides: Internal Control Fundamentals - Satisfying Audit Requirements for Evaluating Design and Implementation
  PDFInternal Control Fundamentals - Satisfying Audit Requirements for Evaluating Design and Implementation Glossary/Index
Review And Test
  quizREVIEW QUESTIONS
 examFINAL EXAM