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| Author : | Jae K. Shim, Ph.D., CPA |
| Course Length : | Pages: 134 ||| Review Questions: 37 ||| Final Exam Questions: 40 |
| CPE Credits : | 8.0 |
| IRS Credits : | 0 |
| Price : | $71.95 |
| Passing Score : | 70% |
| Course Type: | NASBA QAS - Text - Technical - NASBA Registry |
| Primary Subject-Field Of Study: | Auditing - Auditing for Course Id 1493 |
| Description : | The introduction of the Sarbanes-Oxley (SOX) Act law fueled rapid growth in the organizational importance of internal control systems. Appropriate interpretation and implementation of the internal control framework are vital for every organization. This course incorporates and reflects up-to-date guidance from the PCAOB, the AICPA, the ACFE, and the principles of 2013 the COSO Framework as amended. The course not only addresses the theoretical concept of the internal control system but also provides readers with the practical guidance they need to assume a role in the design, implementation, maintenance and evaluation of a comprehensive framework of internal controls for their organizations. Specifically, the course presents the principles of internal control to help readers understand the nature and context of control, such as the limitations of internal controls, the most recognized controls frameworks (e.g., COSO Framework, Green Book), and some common and important control procedures. It also includes steps on how to identify risks and controls, advice on how to assess the adequacy of controls, a discussion of how to reach a fair assessment, and documentation requirements for evidence of effective controls. In addition, the course discusses requirements related to performing an integrated audit: AS 2201 and AU-C Section 940. Although these auditing rules are mandatory for external auditors and not for management, management should give consideration to following the approach described in these requirements. No discussion of internal controls would be complete without an examination of fraud prevention and detection. All organizations are subject to fraud risks. Fraud is now so common that its occurrence is no longer remarkable, only its scale. The course offers the essential tools for designing and implementing programs and controls to prevent and detect fraud. It focuses on the causes of fraud, fraud risk factors, some of the more common types of fraud, fraud symptoms, and fraud preventive and detective techniques, along with recent cases of corporate fraud. It explains the differences between forensic accounting and auditing. It also includes the ACFE Fraud Prevention Checkup to help organizations identify major gaps and fix them before it is too late. This course includes an illustration of potential internal control weaknesses involving accounting and financial reporting cycles, along with examples of compensating controls. It provides sample audit programs of key processes. It also incorporates appendixes including an example of management internal control report, a SOX Section 404 management compliance checklist, financial reporting controls and information systems checklist for each key cycle (e.g., revenue, inventory, financing), and a computer applications checklist. |
| Usage Rank : | 0 |
| Release : | 2022 |
| Version : | 1.0 |
| Prerequisites : | None. |
| Experience Level : | Overview |
| Additional Contents : | Complete, no additional material needed. |
| Additional Links : |
Internal Controls: Definition, Types, and Importance
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| Advance Preparation : | None. |
| Delivery Method : | QAS Self Study |
| Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
| Revision Date : | 19-Jan-2022 |
| 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 - Text - Technical - NASBA Registry - 1493 |
| Keywords : | Auditing, Internal, Control, Fraud, Detection, Practical, Guide, cpe, cpa, online course |
| Learning Objectives : |
Course Learning Objectives After completing this course, you will be able to:
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| Course Contents : | Course Learning Objectives Introduction Part I - The Principles of Internal Control - Section 1 System of Internal Control The Definition of Internal Control Limitations of Internal Controls Internal Control Frameworks 2013 COSO Framework as Amended Overview Components of Internal Control The Control Environment Risk Assessment Identify Risks Evaluate Risks Respond to Risks Control Activities Information & Communication Systems Support Monitoring Activities The GAO Green Book Overview Principles and Attributes Part I - Section 1 Review Questions Part I - The Principles of Internal Control - Section 2 Types of Controls Directive Controls Preventive Controls Detective Controls Corrective Controls The Concepts of ICFR Integrating Controls over Information Systems IT General Controls IT Application Controls Other Considerations Cost-Benefit Relationships Benefit-Cost Analysis Cost-Effectiveness Analysis Smaller, Less Complex Entities Part I - Section 2 Review Questions Part II - Management Assessment of Internal Controls- Section 3 Introduction to the Sarbanes-Oxley Act Management Assessment of Internal Controls (Section 404) Overview Responsibilities of Management Exhibit A: Hertz Global Holdings, Inc. - Controls and Procedures Role of Independent Public Accountant Corporate Responsibility for Financial Reports (Section 302) Other Key Principles Auditor Independence The Role of the Audit Committee Disclosures in Periodic Reports Corporate and Criminal Fraud Accountability Identification of Risks and Controls Step 1: Selecting the Control Framework Step 2: Defining Control Objectives Step 3: Addressing and Monitoring Risks Step 4: Establishing Controls Part II - Section 3 Review Questions Part II - Management Assessment of Internal Controls - Section 4 Assessment of the Adequacy of Controls Determining Key Controls Evaluating the Effectiveness of Controls The Design of Controls The Operating Effectiveness of Controls Evaluation of Control Deficiencies Step 1: Understanding the Nature of the Deficiency Step 2: Assessing the Misstatements Step 3: Considering Compensating Controls Step 4: Determining Classification of Deficiencies Step 5: Reporting Assessment Results Documentation of Evidence of Effective Controls Identification of Control Gaps Illustration of Potential Internal Control Weaknesses and Compensating Controls Part II - Section 4 Review Questions Part III - Integrated Audit Requirements - Section 5 Relevant Auditing Standards The PCAOB The AICPA Audit Objectives and Applicability Planning the Audit Exhibit B: Sample Audit Programs for Financial Statement Accounts Cash in Bank Trade Accounts and Notes Receivable Inventory Fixed Assets Prepaid Expenses and Deferred Charges Accounts Payable Stockholders’ Equity Sales and Other Types of Income Expense Items Using a Top-Down Approach Key Concepts Significant Risk and Inherent Risk The PCAOB The AICPA Likely Sources of Misstatement Period-end Financial Reporting Process Evaluation of the Components of ICFR Control Environment Risk Assessment Control Activities Relevant to the ICFR Audit Information and Communication Monitoring Activities Part III - Section 5 Review Questions Part III - Integrated Audit Requirements - Section 6 Identifying and Assessing Fraud Risks Characteristics of Fraud Exhibit C: Circumstances That Indicate the Possibility of Fraud Application of Professional Skepticism Discussion with the Team Interviews with Management and Employees Documentation Responding to Assessed Fraud Risks Overall Responses Audit Procedures Responses to Assessed Fraud Risks Due to Fraudulent Financial Reporting Revenue Recognition Inventory Quantities Management Estimates Responses to Risks Related to Management Override of Controls Exhibit D: Business Purpose for Significant Unusual Transactions Identified Misstatements Due to Fraud Testing Controls Design and Operating Effectiveness Relationship of Risk to the Evidence Obtained Evaluating Control Deficiencies Illustrations: Significant Deficiencies and Material Weaknesses Scenario A – Significant Deficiency Scenario B – Material Weakness Communicating Certain Matters ICFR-Related Matters Exhibit E: Illustrative Written Communication of Significant Deficiencies and Material Weaknesses Fraud-Related Matters Reporting Audit Results Types of Audit Opinions Audit Matters Critical Audit Matters Exhibit E: Walmart - Critical Audit Matters Key Audit Matters Other Considerations Smaller, Less Complex Entities Financial Information Systems Management Written Representations Use of the Work of Internal Auditors or Others Part III - Section 6 Review Questions Part IV - Fraud Prevention and Detection - Section 7 Fraud Awareness Basics of Fraud Definition of Fraud Fraud Triangle Opportunity Incentive/Pressure Attitudes/Rationalization The Evolution of Fraud Types of Fraud Occupational (Corporate) Fraud Corruption Asset Misappropriation Risk Factors Relating to Misstatements Arising from Misappropriate of Assets Financial Statement Fraud Risk Factors Relating to Misstatements Arising from Fraudulent Financial Reporting Procurement and Contractor Frauds Part IV - Section 7 Review Questions Part IV - Fraud Prevention and Detection - Section 8 Forensic Accounting and Auditing Fraud and Perpetrators The Fraud Symptoms Indicators of Financial Crime Red Flags of Employee Behavior Red Flags of Organizational Behavior Real-World Cases Accounting Fraud: Executives of Network Infrastructure Company Years-Long Accounting Scheme: Executives of The Kraft Heinz Company Fraud Prevention and Detection Fraud Risk Assessment Fraud Prevention Techniques The ACFE Fraud Prevention Checkup Fraud Detection Techniques Data Mining Forensic Computing Fraud Response Plan Part IV - Section 8 Review Questions Appendix A: Example of Management Report Appendix B: Section 404 Management Compliance Checklist Appendix C: Financial Reporting Controls and Information Systems Checklist - Medium to Large Business Part 1. Internal Control Assessment Questionnaires Control Environment Significant Transaction Cycles Revenue Cycle Revenue and Accounts Receivable Cash Receipts Purchasing Cycle Purchases and Accounts Payable Cash Disbursements Inventory Financing Investments Debt Property, Plant, and Equipment Payroll Cycle Part 2. Financial Information System Checklist End-User Computing Procedures and Controls over End-User Computing Information Processed by Outside Computer Service Organizations Part 3. Assessing Segregation of Duties and the Risk of Management Override Lack of Segregation of Duties Management Override Part 4. Interpret Results Appendix D: Computer Applications Checklist - Medium to Large Business Computer Hardware Computer Software Computer Control Environment Outside Computer Service Organizations Glossary |
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