Since the impetus of Sarbanes-Oxley, focus on the need to follow a risk-based approach to the financial statement audit has been high on the agenda for auditors. In order to properly assess risk, auditors must have a strong understanding of the organization and its key risk factors along with the specific internal controls established to mitigate risks.
When performing a financial statement audit, auditors are now required to critically evaluate internal controls that are key to addressing financial statement risk. They must examine both the design of the control as well as its operating effectiveness. This requires a strong understanding of internal control concepts and the COSO internal control framework.
One key to a successful audit is establishing the proper risk-based framework to conduct the review. In addition, understanding all components of the internal control framework utilized by the organization is key to examining controls established to mitigate risk. In this course we will examine both a risk-based approach to conducting the financial statement audit as well as the COSO 2013 internal control framework and how it should be applied within the risk-based process.
Publication Date: October 2019
Designed For
External Auditors, CPAs performing compilation and attestation services, Accountants and Finance professionals, Internal auditors, Executive management/ Board members and Audit Committee members, and Legal and Compliance professionals.
Topics Covered
- Risk Based and Internal Control Considerations in a FS audit
- Execute the requirement to assess internal control through utilization of the COSO internal control framework
- Utilize concepts of internal control as a part of the risk assessment process
- Requirements of the financial statement auditor when an organization uses a service organization
- Methods to documenting the control assessment
- Assess and communicate identified deficiencies
Learning Objectives
- Recognize and apply proper risk based and internal control considerations in a financial statement audit
- Recognize appropriate methods to documenting the control assessment and assess and communicate identified deficiencies
- Identify the requirement to assess internal control through utilization of the COSO framework
- Describe and utilize concepts of internal control as a part of the risk assessment process
- Identify requirements of the FS auditor when an organization uses a service organization in the
context of an entity's system of control
- Recognize which area is addressed through the issuance of SAS 110
- Identify an example of an operating deficiency
- Describe correct statements with respect to assessing internal control using COSO
- Identify a principle with respect to the control environment
- Identify the new term for "reportable condition" as prescribed by SAS 112
- Recognize the steps in applying the RA model
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Auditing (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Lynn Fountain
Lynn Fountain has over 38 years of experience spanning public accounting, corporate accounting and consulting. 20 years of her experience has been working in the areas of internal and external auditing and risk management. She is a subject matter expert in multiple fields including internal audit, ethics, fraud evaluations, Sarbanes-Oxley, enterprise risk management, governance, financial management and compliance. Lynn has held two Chief Audit Executive (CAE) positions for international companies. In one of her roles as CAE, she assisted in the investigation of a multi-million-dollar fraud scheme perpetrated by a vendor that spanned 7 years and implicated 20 employees. The fraud was formally investigation by the FBI and resulted in 5 indictments estimating a $13M fraud loss.
Ms. Fountain is currently engaged in her own consulting and training practice. She is a highly sought-after trainer and international speaker. In addition, Ms. Fountain has assisted numerous companies with enterprise risk management frameworks, internal audit processes and financial accounting. She also serves as a discussion leader for the AICPA for numerous classes finance, accounting and risk management topics.
Ms. Fountain is the author of three separate technical books. Her first book released in 2015 by the Institute of Internal Auditors Foundation is entitled “Raise the Red Flag – The Internal Auditors Guide to Fraud Evaluations”. Her second book “Leading the Internal Audit Function” was released in October 2015 by Taylor & Francis Publications. This book serves as the initial launch for a series of leading practice internal audit and information technology publications. Her third book “Ethics and the Internal Auditor’s Dilemma” was released in December 2016.
Ms. Fountain obtained her BSBA from Pittsburg State University and her MBA from Washburn University in Kansas. She has her CPA, CGMA, CRMA credentials.