|Author :||Leita Hart-Fanta, CPA|
|CPE Credits :||9.0|
|IRS Credits :||0|
|Passing Score :||70%|
|Primary Subject-Field Of Study:||
Auditing (Governmental) - Auditing (Governmental) for Course Id 1547
Government audits are unusually complex. Let Leita guide you through every step of conducting an audit including assessing risk, refining the audit objective, choosing methodologies, and documenting your work. Your responsibilities for fraud, useful interviewing tips, and the elements of a finding are covered using case studies, frequent references to audit standards, and stories of audit failures and successes.
This course covers three types of audits typical in the government environment: a financial audit, a performance audit, and a compliance audit.
|Usage Rank :||0|
|Experience Level :||Overview|
|Additional Contents :||Complete, no additional material needed.|
|Additional Links :|
|Advance Preparation :||None.|
|Delivery Method :||Self-Study|
|Intended Participants :||Anyone needing Continuing Professional Education (CPE).|
|Revision Date :||19-Jul-2019|
|NASBA Course Declaration :||Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam.|
|Approved Audience :||
NASBA QAS - NASBA Registry - 1547
|Keywords :||Auditing (Governmental), Essential, Skills, Government, Auditor, v09, Yellow, Book, Series, cpe, cpa, online course|
|Learning Objectives :||
Course Learning Objectives
|Course Contents :||
Chapter 1 - What Is an Auditor?
What Is an Auditor?
Consulting vs. Auditing
Subject Matter and Criteria
Questions Auditors Answer
Let’s Tweak That Definition of an Auditor
Study Questions for Chapter 1
Chapter 2 - Standard-Setting Bodies and Types of Audits
Borrow from Whomever Is in the Lead
Types of Audits
Investigations Are Different
Study Questions for Chapter 2
Chapter 3 - The Steps in Conducting an Audit Traditional Approach
Here Are the Steps in Conducting an Audit:
1. Receive vague audit assignment
2. Gather information about the audit subject
3. Determine audit criteria
4. Perform a risk assessment
5. Refine the audit objective and sub-objective
6. Choose the methodologies
7. Budget each methodology
8. Formalize the audit plan
9. Formalize the audit program
10–11. Perform the audit methodologies and document results
12. Review working papers
13. Writing findings
14. Conferring with the client
16. Finalizing the report
The Three Phases of Auditing
Study Questions for Chapter 3
Chapter 4 - How to Control an Audit
The Worst Audit Ever!
Weakness #1: A vague and ever-expanding audit objective
Things You Can Do About Other Audit Risks
But What You Do Not Do Is:
Weakness #2: No deliverables
A List of Deliverables
Weakness #3: No time limit
Your Choices Make All the Difference
Study Questions for Chapter 4
Chapter 5 - Gathering Information
AU-C 315: Understand the Entity and Assess Risk
Observations and Inspections
Gain an Understanding of Five Areas
The Yellow Book Also Has Key Areas
A Mandatory Group Meeting
“Just Do It”
The AICPA’s New Motto is “Just Think about It”
General Requirements of the Team Meeting Regarding Risk
How Do Auditors Use This Information?
Where are we in the process?
Study Questions for Chapter 5
Chapter 6 - The Audit Criteria
The Importance of Clear and Wise Criteria
What Is Criteria?
Places to Get Criteria
Three Kinds of Faulty Criteria
1. “Thanks for Sharing” Criteria
2. Vague Criteria
3. Non-Existent Criteria
The Client May Successfully Fend Off Audit Recommendations If You Don’t Have Firm Criteria
Document the Criteria and Get the Client to Agree!
Which criteria is relevant?
laws, regulations, contract, grant agreement
benchmarks, standards, goals
“Good Business Practice” Isn’t Criteria
Study Questions for Chapter 6
Chapter 7 - The Big Picture of Risk Assessment
Two Main Steps to Doing a Risk Assessment
What Happens If You Don’t Do a Risk Assessment?
How to Create Bite-sized Chunks – the Globe Analogy
Hit the Hot Spots
Study Questions for Chapter 7
Chapter 8 - Inherent Risk
Defining inherent risk
Three facets of inherent risk
1. Generic Risk
2. Fraud Risk
3. Flip side risk
Forecasters of Doom
Magnitude and Likelihood
Study Questions for Chapter 8
Chapter 9 - Control Risk
Where Did the COSO Model Originate?
The Top and Side of the Cube
How Do Small Organizations Pull off All of This?
Distinguish between Design and Implementation of a Control
Study Questions for Chapter 9
Chapter 10 - All the Risks Together
Combining Inherent Risk and Control Risk
The Auditor’s Response – Detection Risk
Inherent Risk and Control Risk Effect on Detection Risk
Another Reason to Let Go of Low Inherent Risk Items
The GAO’s Take on Risk Assessment
Where Does the IIA Stand on Risk Assessment?
A Summary of the Risk Assessment Theory, in Simple English
Study Questions for Chapter 10
Chapter 11 - Risk Assessment for a Financial Audit
The AICPA Breaks Down the Audit Universe into Pieces for a Financial Audit
First Break – The Components of the Financial Statements
Example: World Charity Super Bingo
Second Cut – Management’s Assertions
Back to Our Case Study – World Charity Super Bingo
Relating Our Financial Audit of World Charity Super Bingo to Our Globe Analogy
Study Questions for Chapter 11
Chapter 12 - Risk Assessment for a Performance Audit
The Purchasing Card Risk Assessment
What Could Go Wrong?
How to Break Purchasing Cards into Bite-Sized Pieces
What Should the Process Look Like?
Alarm Systems: Steps of a Process vs. Internal Controls:
A Refinement to Our Risk Assessment Model – The Elements of a Finding
Controls per step
Using the COSO Model
A Chat about Resulting Objectives and Methodologies
What Might the Report Look Like?
Wow, That Was a Lot of Work!
Study Questions for Chapter 12
Chapter 13 - Risk Assessment for a Compliance Audit
A Compliance Audit: Trixie’s Daycare
Materiality Level #1: Decide on the Major Program
Materiality Level #2: Choose Compliance Requirements
Materiality Level #3: Risk Assessment on the Applicable Compliance Requirements
Study Questions for Chapter 13
Chapter 14 - Refining the Objectives
A definition of an Audit Objective
Strong Criteria Wins Out over Effective Every Time
Replace the E Words with Something Auditable!
What NOT To Do – A Bad Audit Objective
Can You Improve These Objectives?
Revisiting the Steps of an Audit
Study Questions for Chapter 14
Chapter 15 - Choosing and Budgeting Methodologies
What Is a Methodology? An Audit Procedure? An Audit Program?
Terms Are Messy in This Area!
What is an Audit Program?
You Were Hired to Think
Who Is Calling the Shots?
Why Create an Audit Program from Scratch?
Following Up after Randy
How to Choose a Good Methodology
Linking Objectives to Related Methodologies
What if Your Audit Plan Is Too Ambitious?
Critical Juncture: Preparing a Written Audit Plan
Simple Audit Program
Disclosing your Methodology
Study Questions for Chapter 15
Chapter 16 - Interviewing Skills and Client Relations
Client Relationships Matter
11 Competencies for Interviewing
1. Analyze Background Materials
2. Assure Preparation of the Meeting Site
3. Establish and Maintain Credibility
4. Manage the Emotional and Physical Environment
5. Demonstrate Effective Communication and Presentation Skills
6. Demonstrate Effective Questioning Skills
7. Demonstrate Effective Listening Skills
8. Provide Clarification and Feedback
9. Record Results in a Clear Manner
10. Resolve All Outstanding Issues
11. Evaluate Interviewer’s Performance
Steps of conducting an interview
Overview of the interviewing steps
Preliminary Work of an Interview
Step 1: Break the ice
Step 2: Brief the interviewee
Step 3: Obtain background info from auditee
Ask them to tell you about their:
Step 4: Size up the auditee
Step 5: Ask interviewee whether they have any questions
Corpus Interviewa (the body of the interview)
Step 6: Questioning
Step 7: Summarize and Paraphrase
Finishing the Interview
Step 8: Close
Step 9: Document the Interview
Study Questions for Chapter 16
Chapter 17 - Working Papers
The Dreaded Working Papers!
From Overly Detailed to Scarily Vague – Sharon and Andrew
What the Standards Require
Working Paper Etiquette
Do Everything Possible to Make the Reviewer’s Life Easier
The Most Significant Way to Smooth the Review Process: Find out What They Want
Rebel without a Clue
Commonly Used Components of Working Papers
1. The Working Paper Is Titled, Signed, and Dated
2. Source, Purpose, Procedures, Results, and Conclusion on Every Page
3. Every Tick Mark Is Explained
4. All Cross-References Are Two-Way
5. Each Working Paper Is Neat and Legible
6. Each Working Paper Is Referenced to the Program
7. Each Working Paper Is Understandable without Further Explanation
8. Important Calculations Were Verified
9. Source Documents Were Included as Necessary
10. If the Client Produced a Document, Write “PBC” on the Working Paper
11. A Review Has Been Indicated
Reviewing Working Papers: Keeping the Big Picture in Mind
Check Concepts before Mechanics
Follow the Hierarchy of Working Papers
Study Questions for Chapter 17
Chapter 18 - Writing a Finding
What Are the Elements of a Finding?
Authority on “the Elements of a Finding”
What Questions Do the Elements Answer for the Reader?
A Few Rules and Tips for Using the Elements
Put Off Writing Full Sentences for as Long as Possible
Use Only One of Each Element
The Elements Must Match
Let’s Look at a Simple Example
Finding the Root Cause
Why Do You Need to Find the Root Cause?
Roll Up the Cause
You Can Move These Elements around Ad Infinitum
Just Stick with the Facts, Ma’am!
· All-or-nothing thinking
· Mental filter
· Disqualifying the positive
· Jumping to conclusions
· Mind reading
· Fortuneteller error
· Magnification (catastrophism) or minimization
· Emotional reasoning
· Should statements
· Labeling and mislabeling
Relax, You Control Freak, You! Edit with Care!
Study Questions for Chapter 18
Chapter 19 - Concluding the Audit
The Warm, Fuzzy Feeling
It’s Getting Better All the Time
One Last Look at the Steps of an Audit
Study Questions for Chapter 19