Obtaining an Understanding of Internal Control

Overview

Gain a basic understanding of internal control and how it relates to risk assessment, through the lens of a financial statement auditor but also insightful for entity management and internal auditors.

Highlights

Key Topics

• 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

Prerequisites

None

Designed For

Who Will Benefit

Financial statement auditors, internal auditors and entity management involved in financial statement audits

Objectives

Learning Outcomes

• 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.