Properly designed and effectively operating internal control over financial reporting is critical for preventing, or detecting and correcting, material misstatement. This module will describe how to satisfy the audit requirements related to taking a control reliance strategy by testing the operating effectiveness of internal controls while promoting an effective and efficient financial statement audit.

Major Topics:

  • Generally accepted audit requirements related to testing controls for operating effectiveness
  • Identifying key controls that may prove effective and efficient to test in a control reliance strategy
  • Responses when deviations are discovered when evaluating the design or operating effectiveness of internal control
  • Leveraging audit evidence available through Service Organization Control (SOC1) Reports
  • General computer control considerations when evaluating the design and operating effectiveness of internal control over financial reporting

 

Learning Objectives
  • Discover and discuss generally accepted audit requirements related to testing controls for operating effectiveness.
  • Identify and explain how to evaluate the results of a control reliance test for operating effectiveness.
  • Explore and describe the use of Service Organization Control (SOC1) Reports on a financial statement audit.
  • Identify the impact of a control reliance strategy on the detailed audit plan.
Last updated/reviewed: August 8, 2023

Included In Certifications

This course is included in the following Certification Programs:

13 CoursesAudit Training Certification - Level 2 - Experienced Staff

  1. Fraud Risk - Complying with Minimum Audit Requirements
  2. Best Practices for Identifying and Evaluating Audit Risk - Linking Risk to the Detailed Audit Plan
  3. Testing Internal Controls - Exploring Strategies for Verifying Operating Effectiveness
  4. Inquiry and Research - Improving Critical Audit Skills
  5. Auditing Investments - Understanding Risks and Procedures for the Most Common Investments
  6. Auditing Accounts Receivable - Focusing Procedures for Testing Existence and Valuation
  7. Auditing Liabilities, Including Long-Term Debt - Addressing the Risks of Completeness, Classification, and Disclosure
  8. Substantive Analytic Procedures - Strengthening Evidence to Satisfy Audit Objectives
  9. Sampling - Avoiding Common Mistakes on Financial Statement and Compliance Audits
  10. Desired Traits of a Star Performer - Visualizing How to Become an Exceptional Staff Auditor
  11. Professional Requirements for Assurance Providers, Including Independence - Understanding Critical Code of Professional Conduct Concepts
  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
7 Reviews (29 ratings)

Reviews

4
Anonymous Author
So much information. Agree with another respondent that the slides do not assist with the exam questions at all, lots of interpretation required from the recording to the slides to the exam.
5
Anonymous Author
This course provides a very helpful overview about internal controls and the testing considerations from the auditor's perspective.
5
Anonymous Author
Thanks for this in-depth course. The course material is rich and the delivery, very excellent.
5
Member's Profile
Great course and overview of advanced assurance topics specific to internal controls
4
Member's Profile
Good course...slides alone don't seem to provide enough insight to answer the test
2
Anonymous Author
Some of the exam question information is not included in the slides provided.
5
Anonymous Author
This was a very informative course and well presented.
Prerequisites
Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.
Designed For: Accountants who have responsibility for evaluating the design and operating effectiveness of controls in a financial statement audit.

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 and Introduction to Testing Internal Controls6:05
  When to Test Operating Effectiveness of Controls13:22
  How to Test Operating Effectiveness of Controls5:30
  Timing Considerations9:59
  Extent of Testing Considerations7:55
  Selecting Controls to Test15:09
  Identified Deficiencies in Results of Testing9:56
  Case Study - Evaluating Results of Operating Effectiveness Tests12:59
  Use of an Outside Service Organization12:20
  IT Controls Considerations7:18
CONTINUOUS PLAY
  Testing Internal Controls - Exploring Strategies for Verifying Operating Effectiveness1:40:33
SUPPORTING MATERIAL
  Slides: Testing Internal Controls - Exploring Strategies for Verifying Operating EffectivenessPDF
  Testing Internal Controls - Exploring Strategies for Verifying Operating Effectiveness Glossary/ IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam