Identifying Audit Risks - Internal Controls and Audit Evidence

Author: Kelen Camehl

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