
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.
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.
Included In Certifications
This course is included in the following Certification Programs:
17 CoursesSarbanes-Oxley (SOX) Certification
- Sarbanes Oxley (SOX) Overview
- SOX: Authoritative Bodies
- Sarbanes-Oxley (SOX) Standards - Evolution
- Information Technology General Controls Primer
- COSO 2013 Overview
- Sarbanes-Oxley (SOX) Section 404
- Sarbanes-Oxley Section 302: ICFR
- Sarbanes-Oxley (SOX) And Fraud Sections
- Sarbanes-Oxley (SOX) - Top Down Risk Assessment Part 1
- Sarbanes-Oxley (SOX) - Top Down Risk Assessment Part 2
- Sarbanes-Oxley (SOX) - Entity Level Controls
- Sarbanes-Oxley (SOX) Identifying and Documenting Controls
- Sarbanes-Oxley (SOX) Testing
- Sarbanes-Oxley (SOX) - Information Technology Controls
- Sarbanes-Oxley (SOX) - Assessing Material Impact
- XBRL - Connection to SOX 302/404 and Critical Roles
- Tools For Sarbanes-Oxley Compliance
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Prerequisites
No advanced preparation or prerequisites are required for this course, but completion of the other courses in this series will be helpful.