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.
This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.
Learning Objectives
After attending this presentation you will be able to:
- 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
- Discuss the COSO Internal Control - Integrated Framework
- Explain important considerations in documenting a systems description narrative
- 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
Major Topics
The major topics covered in this class include:
- 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
