2024 The Role of Internal Control in the Risk-Based Audit

Overview

This program explores the role of client internal controls for balancing efficiency and effectiveness in a risk-based audit. We offer practical insights regarding an auditor's assessment of the risk of material misstatement when auditing financial statements of non-issuers, with particular emphasis on internal controls of small-to-medium clients.

Highlights

Specific matters auditors should consider when obtaining and documenting an understanding of the client's internal control system
Development of a tailored audit approach that considers the potential reliance on internal controls
Guidance for establishing an adequate basis for reliance on internal controls of less formal, smaller clients

Prerequisites

Basic working knowledge of financial statements

Designed For

CPAs in public practice or members in industry

Objectives

Identify minimum understanding and documentation requirements if the auditor does not intend to rely on internal controls
Recognize internal controls of less-sophisticated, small-to-medium sized audit clients
Utilize identified internal controls for an efficient, risk-based approach to audits conducted in accordance with generally accepted auditing standards
Document your procedures and related conclusions