Overview
Understand internal control
Understand internal control in risk assessment as required by GAAS.
Gain an overview of internal control and related key aspects so that you recognize auditor and management roles and responsibilities related to internal control and procedures involved in understanding an entity's internal control in a risk assessment.
Prerequisites
None
Objectives
- Recognize the importance of understanding internal control.
- Recall factors and procedures that an auditor should consider when obtaining an understanding of the entity and its environment, including internal control.
- Recall definitions and key aspects of internal control from various organizations.
Highlights
Various definitions and aspects of internal control, including separation of duties and safeguarding of assets
- Key aspects of internal control from various organizations, such as COSO, SEC, and PCAOB
- Factors to consider, for example, industry, regulation, and nature of the entity
- Risk assessment procedures, namely inquiry, analytical procedures, and observation and inspection, as well as brainstorming
