Testing Internal Controls in a Single Audit (Currently Unavailable)

Author: Diane Edelstein

Did you know that testing of Internal Controls is required in a Single Audit? In depth testing of compliance is not good enough. We will look at the requirement for the auditee to establish internal control and what that might look like. The auditor is not required to test every Internal Control, so what does the auditor test? And if you find a problem how do you report the finding?

We will look at the Green Book/COSO Frameworks for Internal Control. We will also look at the Compliance Supplement and how to determine direct and material compliance requirements that will need the internal control testing. If an issue is found in the internal control we will address how it is reported both on the Schedule of Findings and Questioned Costs and in the report itself.

Publication Date: November 2021

Designed For
This session is designed for auditors but can be helpful for non-profits and governments in their designing of internal control.

Topics Covered

• Burden of More Single Audits
• Timeline on COVID Funding
• Largest COVID-19 Federal Programs Subject to Single Audit to Date
• Uniform Guidance - Overview
• Auditee responsibility for Internal Control
• Auditor responsibility for testing Internal Control
• Evaluating controls and testing controls
• How to report a finding in Internal Control

Learning Objectives

• Identify the auditee responsibility for Internal Control
• Differentiate which areas of internal control the auditor must test
• Recognize the requirement to evaluate whether controls are designed effectively and have been placed into operation
• Identify the requirement to test internal controls
• Recognize components relating to Green Book and COSO and how they apply
• Identify correct statements regarding an auditee's responsibility for internal control
• Identify correct statements regarding areas of internal control the auditor must test
• Describe contorl deficiency
• Identify the steps in tackling internal controls
• Recognize an example of an internal control, not a process
• Identify correct statements regarding the documentation of audit findings per the Uniform Guidance

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Auditing (Governmental) (2 hours)

Program Prerequisites
None

Advance Preparation
None