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Concepts for an accounting top down risk assessment can be well defined, but execution of a true top-down risk accounting risk assessment is still a challenge. The requirement of Auditing Standard 5 (AS5) to consider multiple risk factors complicates the process.  Organizations will often struggle with the best method to properly evaluate their accounts to determine those which present the potential for a material misstatement.

This course focuses on the methodology steps reviewed in Segment One of developing a top-down risk assessment.  We delve further into understanding how to examine entity-level controls and their importance on determining account significance.  We review the steps outlined in Segment One and apply those steps towards two separate scenarios.  This allows the participant to think through the process and application and to examine how a scoring methodology may be beneficial within their individual process.

Information within this course comes from readily available public domain documents and is utilized by the trainer as a supplement for relaying the course content.

Note: The concepts outlined in this course are up to date and relevant in regards to the Sarbanes-Oxley legislation. Although there have not been any changes in the legislative concepts of the law since it’s release in 2002, some aspects of executing the work have evolved. This speaker is preparing a series of courses titled “Sarbanes-Oxley 20 years later”. Those courses can be found individually on the platform and would be beneficial for anyone involved with compliance.

NOTE: The Instructor has created 5 new segments on Sarbanes-Oxley Update - 20 Years Later:
Sarbanes-Oxley Update - 20 Years Later: Accounting Risk Assessment Considerations
Sarbanes-Oxley Update - 20 Years Later: Sourcing Emerging Risks Part 1
Sarbanes-Oxley Update - 20 Years Later: Evaluating Testing Processes
Sarbanes-Oxley Update - 20 Years Later: Sourcing Emerging Risks Part 2
Sarbanes-Oxley Update - 20 Years Later: Examining Fraud Risks

Learning Objectives

  • Explore the key steps of a top down Risk Assessment (RA)
    • Assessing entity level controls
    • Determining significant accounts
    • Linking to assertions
    • Identifying related controls for significant accounts
    • Linking to Committee of Sponsoring Organizations (COSO) principles
  • Explore real world examples of executing a top down Risk Assessment
    • ABC Construction
    • Acme Inc.
Last updated/reviewed: May 6, 2022

Included In Certifications

This course is included in the following Certification Programs:

16 CoursesSarbanes-Oxley (SOX) Certification

  1. Sarbanes Oxley (SOX) Overview
  2. SOX: Authoritative Bodies
  3. Sarbanes-Oxley (SOX) Standards - Evolution
  4. Information Technology General Controls Primer
  5. COSO 2013 Overview
  6. Sarbanes-Oxley (SOX) Section 404
  7. Sarbanes-Oxley Section 302: ICFR
  8. Sarbanes-Oxley (SOX) And Fraud Sections
  9. Sarbanes-Oxley (SOX) - Top Down Risk Assessment Part 1
  10. Sarbanes-Oxley (SOX) - Top Down Risk Assessment Part 2
  11. Sarbanes-Oxley (SOX) - Entity Level Controls
  12. Sarbanes-Oxley (SOX) Identifying and Documenting Controls
  13. Sarbanes-Oxley (SOX) Testing
  14. Sarbanes-Oxley (SOX) - Assessing Material Impact
  15. XBRL - Connection to SOX 302/404 and Critical Roles
  16. Tools For Sarbanes-Oxley Compliance

50 Reviews (160 ratings)Reviews

3
Anonymous Author
I feel the course was helpful in understanding the concepts. The examples provided were very useful; however, the parts of course felt very repetitive, as a chunk of the material was a repeat of part 1. I feel it would have been better if less time had been spent going over previously covered material and more focus had been placed on the two examples provided.
5
Anonymous Author
The course is very helpful in working through two examples of top down risk assessments which makes it easier to understand the concepts of weighting various elements as per AS5 and then risk scoring against significant accounts.
4
Anonymous Author
It was very well structured, well-paced and easy to follow training course. Structuring the course in segments as well as offering a continuous play option is perfect for any learning style. The examples given were good.
5
Member's Profile
I have done a number of Lynn Fountain's courses and find her to be a very capable presenter and communicator. She presents complex material very easily and I appreciate her sharing her vast experience in this course.
4
Anonymous Author
Anither excellent course from Lynn Fountain - informative and easily digestable! Content was appropriate for internal or external audit professionals and provided with a very practical and hands-on approach.
5
Member's Profile
Part to of the Top Down Risk Assessment course reinforced part one. I plan on revisiting this course annually as it was most informative and applicable to my job responsibilities. Thank you Lynn!
5
Anonymous Author
Great instruction, good examples. Would have benefited from downloadable templates and less emphasis on the review since this is an immediate follow-up from the previous section.
5
Anonymous Author
This course is a straight-forward and clear summary of the SOX top down risk assessment and clearly outlines considerations key to the exercise. It's clear and easy to follow.
5
Member's Profile
I found the examples especially helpful because it tied it all together. Reviewing some of the items from section one was also helpful for recollection and context.
4
Anonymous Author
I liked the two examples of businesses that illustrate the importance of the situation for applying COSO principles and top down risk assessment.
5
Member's Profile
This course provides clear examples of risk assessment process within an organization as well as the methodology to follow which is very helpful.
5
Anonymous Author
I enjoyed the examples given in this course. These examples helped to bring all of the concepts that I am learning in the certification together!
5
Anonymous Author
I am in the midst of performing the Risk Assessment for a newly formed entity. The two sessions on risk assessments provided a good roadmap.
4
Member's Profile
The course was helpful in understanding the concepts. The examples provided were relevant and helped to understand the concepts more fully.
4
Anonymous Author
This course provides a good understanding of what a Top Down risk assessment is and why it is performed and why it is important and useful.
5
Anonymous Author
The course is filled with plenty of useful information on internal controls and top down risk assessment of internal controls as per SOX.
3
Anonymous Author
Wish less time had been spent going over previously covered material and the two examples had been further developed and emphasized.
4
Anonymous Author
This is a refresher course on SOX. Nothing surprised me but I believe beginners in the field will learn from this.
5
Anonymous Author
Sarbanes-Oxley (SOX) - Top Down Risk Assessment Part 2 was in detailed, very interesting and informative learning.
5
Anonymous Author
This course is a good review of how to determine and link significant accounts to COSO and build audit plan.
5
Anonymous Author
This is a good training and gives a deeper understanding on the Top Down Risk assessment. Good example.
5
Member's Profile
I liked the examples, is perfect to understand how is the practice of RA routine. Very well explained.
5
Anonymous Author
Great overview to understand the concepts of Top down approach, entity level controls and assertions.
5
Anonymous Author
The examples provided really help in understanding the concepts and learning how to apply them.
5
Anonymous Author
This course was excellent and provided important information that I will utilize in the future.
5
Anonymous Author
This course provided a good high level overview of how to conduct a risk assessment for SOX.
4
Member's Profile
I would have liked to have more examples and some of the stuff was same as covered in part 1.
3
Member's Profile
Seems some of this info was covered in the prior section - could probably combine into one.
4
Member's Profile
Overall good course demonstrating simple top-down risk assessment principles and examples.
3
Member's Profile
Good course but I could not connect properly to part 1 as it repeats some of its concepts.
3
Member's Profile
I feel as though the course was a repeat of part 1, charts and information was the same.
4
Anonymous Author
More examples on explaining how the top down risk assessment is implemented were needed
4
Anonymous Author
I liked the practical examples demonstrated how to execute top down risk assessment.
5
Anonymous Author
Trainer provides very good examples on the risk assessment. Very good training.
4
Anonymous Author
The examples were very good, and the whole presentation was easy to understand.
5
Member's Profile
I enjoyed the case studies which made it more relatable to everyday experience.
5
Anonymous Author
Course was very informative. I gained a deeper understanding of Risk Assessment
5
Anonymous Author
Solid course. I continue to find the content both comprehensive and engaging.
5
Anonymous Author
Excellent detailed evaluation of top down risk assessment for Sarbanes Oxley.
5
Member's Profile
Great way to provide additional background of the risk assessment process
4
Member's Profile
this was alot of work but the slides and seminars made it much easier
3
Member's Profile
Very good course, Its good to have a one presentation rather than many
4
Anonymous Author
The examples are helpful in showing how to apply the COSO framework.
4
Member's Profile
Nice recap of Top Down risk assessment, entity level controls.
5
Member's Profile
Taught with the help of examples that makes easy to understand
5
Anonymous Author
Another great session from Lynn on top down risk assessment.
4
Member's Profile
It builds on Part 1 which I believe should be taken first.
4
Member's Profile
Great course, easy to follow and very much practical.
4
Anonymous Author
Very informative. Builds nicely off part1.
5
Member's Profile
Good

Prerequisites

Course Complexity: Advanced

No advanced preparation or prerequisites are required for this course, but completion of the other courses in this series will be helpful.

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
  4:12Introduction to Sarbanes-Oxley (SOX): Executing a Top Down Risk Assessment
Executing a Top Down Risk Assessment
  5:58Key Steps
  16:20Evaluating ELCS
  5:10Significant Financial Reporting Elements
  8:11Linking Assertions
  7:17Linking to Coso Principles
  7:11Example One
  3:51Accounts
  5:23Scoring Example
  3:59Procedures
  11:12Example 2
Conclusion
  6:02Course Summary
Continuous Play
  1:24:45Sarbanes-Oxley – Executing a Top Down RA Part 2
SUPPORTING MATERIALS
  PDFSlides: Executing a Top Down Risk Assessment Part 2
  PDFExecuting a Top Down Risk Assessment Part 2 Glossary/Index
REVIEW and TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM