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| Author : | Jae K. Shim, Ph.D., CPA |
| Course Length : | Pages: 119 ||| Review Questions: 34 ||| 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 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 is 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 COSO Framework. The course not only addresses the theoretical concept of the internal control systems 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 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 evidences of effective controls. In addition, the course discusses requirements related to performing an integrated audit: SAS 130 and AS No. 2201. 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 some recent cases in 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 controls 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 : | 2020 |
| Version : | 1.0 |
| Prerequisites : | None. |
| Experience Level : | Overview |
| Additional Contents : | Complete, no additional material needed. |
| Additional Links : |
Top Ten Internal Controls to Prevent And Detect Fraud!
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| Advance Preparation : | None. |
| Delivery Method : | QAS Self Study |
| Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
| Revision Date : | 15-Jan-2021 |
| 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 Internal Control Systems The Definition of Internal Control Limitations of Internal Controls Internal Control Frameworks 2013 COSO Framework Overview Components of Internal Control The Control Environment Risk Assessment Identify Risks Assess Risks Respond to Risks Relevance to Sarbanes-Oxley Compliance Control Activities Information & Communication Systems Support Monitoring The GAO Green Book Overview Framework Principles Control Framework - 17 Principles Control Framework with GAO’s Attributes Part I - Section 1 Review Questions 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 Considerations Specific to Smaller Entities Cost-Benefit Relationships Benefit-Cost Analysis Cost-Effectiveness Analysis Part I - Section 2 Review Questions Part II. Management Assessment of Internal Controls 0Understanding the Sarbanes-Oxley Act Rules Enhanced Financial Disclosures (Section 404) Overview Management’s Internal Control Report The Role of Independent Public Accountant Corporate Responsibility (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 General Concerns Anti-Fraud Considerations Assessment Criteria Step 4: Establishing Controls Part II - Section 1 Review Questions 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 Likelihood of Misstatements Step 3: Considering Compensating Controls Step 4: Determining Classification of Deficiencies Step 5: Reporting Assessment Results Documentation of Effective Controls Identification of Control Gaps Illustration of Potential Internal Control Weaknesses and Compensating Controls: Accounting and Financial Reporting Part II - Section 2 Review Questions Part III. Audit of ICFR Integrated with Audit of Financial Statements Audit Objectives and Scope Relevant Standards Auditing Standard No. 2201 Statement on Auditing Standards 130 Planning the Audit Part III - Section 1 Review Questions Using a Top-Down Approach The Key Concepts Sample Audit Programs 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 Assessing the Risk of Fraud Characteristics of Financial Statement Fraud Types of Fraud Fraud Risk Factors Brainstorming Sessions Fraud Risk Assessment Collect Information Identify and Assess Fraud Risks Respond to the Fraud Risk Assessment Testing Controls Testing Design Effectiveness Testing Operating Effectiveness Relationship of Risk to the Evidence Obtained Evaluating Control Deficiencies Examples of Significant Deficiencies and Material Weaknesses Scenario A – Significant Deficiency Scenario B – Material Weakness Responding to Misstatements Caused by Fraud Reporting Audit Results Types of Audit Opinions Audit Matters Critical Audit Matters Key Audit Matters Other Considerations Considerations Specific to Smaller, Less Complex Entities Considerations of Financial Information Systems Management Written Representations Communication of Certain Matters Use of the Work of Internal Auditors or Others Part III - Section 2 Review Questions Part IV. Fraud Prevention and Detection Fraud Awareness Basics of Fraud Definition of Fraud Fraud Triangle Opportunity Pressure/Incentive 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 False Claims and False Statements Part IV - Section 1 Review Questions Forensic Accounting and Auditing Fraud and Perpetrators The Fraud Symptoms Indicators of Financial Crime Red Flags of Employee Behavior Red Flags of Organizational Behavior Recent Cases in Corporate Fraud Fraud Prevention and Detection Fraud Risk Assessment Techniques for Fraud Prevention The ACFE Fraud Prevention Checkup Interpreting the Entity’s Score The Use of Technology for Fraud Detection Data Mining Forensic Computing Part IV - Section 2 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 Account Balances and 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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