Identifying Audit Risks - Compliance and Going-Concern Issues (Course Id 2500)

• Who is this course for?
  This course is designed for anyone needing Continuing Professional Education (CPE), including CPAs and other accounting professionals.

• What is this course about or what problem does this course solve?
  This course addresses the identification of audit risks related to compliance issues, cybersecurity vulnerabilities, and going-concern uncertainties in audit engagements.

• How can the knowledge from this course be used?
  Learners can apply the knowledge to recognize red flags, assess risks, and implement appropriate audit responses to compliance violations, cybersecurity threats, and going-concern issues.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  It is important because it equips professionals with tools to detect and respond to audit risks early, thereby safeguarding organizations and ensuring audit quality and regulatory compliance.

• When is this course relevant or timely?
  The course is timely for audits involving entities facing financial or operational difficulties, increased regulatory scrutiny, or heightened cybersecurity threats, especially given its 2025 release.

• How is a course like this consumed or used?
  This course is delivered through a QAS self-study format, allowing learners to study the material independently and complete an exam to earn CPE credit.

This course addresses red flags auditors should be mindful of in compliance audits, cybersecurity evaluations, and going-concern assessments. Topics include how to spot violations of legal and regulatory requirements, signs of inadequate cybersecurity measures, and how to evaluate the going-concern assumption in light of financial difficulties or operational risks. The course also discusses how auditors can respond to these red flags and ensure that potential issues are identified early, protecting both the organization and its stakeholders from future risks. 

NASBA QAS - Text - NASBA Registry - 2500

Course Learning Objectives

• Recognize red flags in compliance audits that suggest potential violations or regulatory risks
• Identify cybersecurity risks and indicators of inadequate protection measures
• Determine when going-concern issues require further assessment or disclosure

Chapter 1 - Identifying Audit Risks - Compliance and Going-Concern Issues

Course Learning Objectives

Course Overview

Introduction

Going-Concern Assessments and the Auditor's Responsibility

Key Financial and Operational Red Flags

Red Flags Related to Management’s Plans to Mitigate Going-Concern Risks

Audit Techniques to Assess the Adequacy of Going-Concern Disclosures

Review Questions

Cybersecurity Risks and the Increasing Importance of IT in Audits

Key Cybersecurity Red Flags

Effectiveness of an Organization’s Cybersecurity Controls

Potential Data Breaches or Weaknesses in IT Governance

Integrating Cybersecurity Assessments into the Overall Audit Process

Compliance Audits and the Risks Involved in Regulatory Non-Compliance

Red Flags Suggesting Potential Violations

Identifying Patterns of Non-Compliance

Monitoring Changes in Laws and Regulations

Role of Auditors in Communicating Compliance Risks to Stakeholders

Conclusion

Review Questions

Glossary of Key Terms