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In the early years of Sarbanes-Oxley (SOX), organizations went to significant detail documenting and testing financial processes. The Public Company Accounting Oversight Board (PCAOB) stressed in Auditing Standard 5 (AS5) the need to focus testing on those accounts that could materially impact the financial statements. AS5 prescribes that the auditor should use a top-down approach to the audit of Internal Control Over Financial Reporting (ICFR).

Although AS5 provides guidance on performing a top-down Risk Assessment (RA), many organizations still struggle with the concept. This course will focus on the requirement for a top-down RA and processes your organization can utilize to effectively apply the approach.  We will cover critical concepts of AS5 risk factors when identifying significant accounts as well as the importance of evaluating entity level controls.

Learning Objectives

  • Explore a top down accounting Risk Assessment (RA)
  • Explore the importance of entity level controls
  • Identify types of entity controls
  • Explore linking controls to financial statement assertions
  • Explore Committee of Sponsoring Organizations (COSO) principles to evaluate for the existence of required controls
Last updated/reviewed: September 18, 2018

Included In Certifications

This course is included in the following Expert Certifications:

16 CoursesSarbanes-Oxley (SOX) Certification

  1. Sarbanes Oxley (SOX) Overview
  2. SOX: Authoritative Bodies
  3. The Evolution of Sarbanes-Oxley (SOX) Auditing Standards
  4. Information Technology in Today’s Digital World: General Controls Primer
  5. COSO 2013 Framework Requirements and Implementation Overview
  6. Sarbanes-Oxley (SOX) Section 404
  7. Sarbanes-Oxley (SOX) Section 302: Internal Controls over Financial Reporting
  8. Sarbanes-Oxley (SOX) Section 806, 902, 906
  9. Sarbanes-Oxley (SOX): Preparing for a Top Down Risk Assessment Part 1
  10. Sarbanes-Oxley (SOX): Executing a Top Down Risk Assessment Part 2
  11. Sarbanes Oxley (SOX): Entity Level and Soft Controls
  12. Sarbanes-Oxley (SOX) Identifying and Documenting Controls
  13. Sarbanes-Oxley (SOX) Testing
  14. Sarbanes-Oxley (SOX) General Controls, Applications Controls, and Spreadsheet Controls
  15. Sarbanes-Oxley (SOX) Difficulty of Assessing Material Impact
  16. XBRL - Connection to SOX 302/404 and Critical Roles

23 Reviews (54 ratings)Reviews

4
Anonymous Author
Good introduction to the risk assessment (RA) with the majority of the course reviewing material already touched upon by the instructor in other presentations and culminating in the introduction and discussion of a RA template.
4
Member's Profile
I'm happy that my suggestion to show the correct answers after test completion was implemented. Knowing the correct answer builds on the understanding of the material.
4
Anonymous Author
Very well-presented material that is relevant to today's audit environment. Course pace was appropriate and objectives were mer. I would reccomend this course.
5
Anonymous Author
Great practical overview of top down risk assessment process including a practical example that demonstrates the theory in practice.
5
Member's Profile
Very good course that did a nice job of laying out the how to conduct a top-down approach and background behind it.
4
Member's Profile
This was an informative course, and I am looking forward to the next course to see more example for application.
4
Member's Profile
This is a very good course on ELC's and the top down approach to RA. This is worth the time to take.
5
Anonymous Author
Very informative. Course provided good information to evaluate current risk assessment process.
5
Member's Profile
Simple and clearly-explained overview of the top-down risk-based assessment process.
4
Member's Profile
This course provided a good over view of preparing for a top down risk assessment
4
Anonymous Author
This course provides a great overview of the Top-Down Risk Assessment Process.
4
Member's Profile
Good information, easy to understand. Great to have the slides as reference.
5
Member's Profile
A lot of material, but well organized and presented. I enjoyed the course.
4
Member's Profile
Good course, very informative. Sample charts were extremely helpful.
5
Member's Profile
Great simple explanation with very useful examples
5
Anonymous Author
Good coverage of the topic and very informative.
5
Anonymous Author
Very informative. Concepts are well explained.
5
Member's Profile
Really enjoying the entire SOX series
4
Anonymous Author
A lot of good information.
5
Anonymous Author
Detailed points
4
Anonymous Author
Good info
5
Member's Profile
Good
5
Anonymous Author
.

Prerequisites

Course Complexity: Advanced

No Advanced Preparation or Prerequisites are needed for this course. 

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
  9:32Introduction to Sarbanes-Oxley (SOX): Preparing for a Top Down Risk Assessment Part 1
Preparing for a Top Down Risk Assessment
  9:48Critical Components of Top Down Assessment
  14:34Types of Entity Controls
  6:22Assertions
  9:49Significant Accounts
  3:08Information Technology
  11:32COSO Principles
  15:23Scoring and Rating
CONCLUSION
  3:43Course Summary
Continuous Play
  1:23:53SOX- preparing for a top down accounting risk assessment
SUPPORTING MATERIALS
  PDFSlides: Preparing for a Top Down Risk Assessment Part 1
  PDFPreparing for a Top Down Risk Assessment Part 1Glossary/Index
REVIEW and TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM