This course focuses on red flags related to internal controls and audit evidence. This course covers weaknesses in internal controls that could indicate potential financial mismanagement, fraud, or operational inefficiencies, such as inadequate segregation of duties, lack of oversight, or unexplained adjustments. It also examines how auditors can detect suspicious audit evidence, including inconsistent or incomplete documentation, and what steps to take when such evidence is found. This course provides auditors with practical tools to strengthen their audit approach and ensure the integrity of their findings.
Publication Date: March 2025
Topics Covered
- The Role of Internal Controls in Detecting and Preventing Fraud
- Common Internal Control Weaknesses
- Red Flags Related to Control Overrides
- Evaluating the Design and Operating Effectiveness of Internal Controls
- Identified Control Deficiencies or Weaknesses
- Types of Audit Evidence and Their Relevance to the Audit Process
- Red Flags in Audit Evidence
- Incomplete, Misleading, or Unreliable Evidence During Fieldwork
- Audit Techniques to Verify Authenticity of Audit Evidence
- Maintaining Professional Skepticism
- Appropriate Audit Documentation
Learning Objectives
- Identify weaknesses in internal controls that may expose the organization to risk
- Select the appropriate response when suspicious or incomplete audit evidence is found
- Indicate how to distinguish between valid and questionable audit evidence during the audit process
Level
Overview
Instructional Method
Self-Study
NASBA Field of Study
Auditing (1 hour)
Program Prerequisites
None
Advance Preparation
None
Instructor
Kelen Camehl
Kelen is a recognized author and reviewer of CPE courses and has authored over 145 courses (350 CPE credit hours) covering a range of accounting, auditing, financial reporting, regulatory, and ethics topics. His courses are available for purchase from many online CPE providers including the AICPA. Kelen remained involved in CPA exam content development for nearly 10 years and authored more than a thousand multiple choice questions for various sections of the CPA exam. He also serves as an Editorial Advisor for the AICPA’s "Journal of Accountancy".
Kelen has nearly 20 years of progressive finance and accounting experience. He currently serves as an Accounting Policy Advisor with HP. Prior to HP, he served in multiple accounting roles in the oil & gas industry with ConocoPhillips including technical accounting policy, SOX compliance, and internal audit. He also gained public accounting experience with PricewaterhouseCoopers, working with various clients in the energy, electric, power, gas, and utility sectors.