Identifying Audit Risks - Internal Controls and Audit Evidence (Course Id 2502)

• Who is this course for?
  This course is intended for anyone needing Continuing Professional Education (CPE), particularly CPAs, accountants, and auditors.

• What is this course about or what problem does this course solve?
  This course addresses the identification of audit risks by examining internal control weaknesses and suspicious audit evidence that could indicate fraud, financial mismanagement, or operational inefficiencies.

• How can the knowledge from this course be used?
  The knowledge from this course can be used by auditors to recognize red flags in internal controls and audit evidence, enabling them to enhance audit reliability and integrity.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  This course is important because it equips professionals with practical tools to detect control deficiencies and evaluate audit evidence, which are critical for accurate and ethical auditing practices.

• When is this course relevant or timely?
  Released in 2025 and revised in March 2025, this course is up-to-date with current auditing standards and practices, making it timely for professionals seeking relevant CPE credit.

• How is a course like this consumed or used?
  This self-study course is delivered in a QAS text format and includes review questions and a final exam; learners must achieve a 70% passing score to earn 1.0 CPE credit.

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. 

NASBA QAS - Text - NASBA Registry - 2502

Course 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
• Distinguish between valid and questionable audit evidence during the audit process

Chapter 1 - Identifying Audit Risks - Internal Controls and Audit Evidence

Course Learning Objectives

Course Overview

Introduction

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

Review Questions

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

Conclusion

Review Questions

Glossary of Key Terms