Internal Controls Over Financial Reporting
- 1 hour on-demand video
- 7 downloadable resources
- 1 Practice Test
- Full lifetime access
- Access on mobile and TV
- Certificate of Completion
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- Perform an actual internal audit engagement for internal controls over financial reporting
- Learn key internal audit terminology and concepts.
- Use real templates to practice what you learn.
- Stay SOX compliant.
- Beginner Level.
- No prerequisites.
This course is designed for you to learn key concepts and put them immediately into practice. This course will be constantly evolving with real-life audit scenarios and audit templates being added routinely to the Resources tab in the course Dashboard. The goal is to help you perform audits for your business; or to assist you in learning internal auditing for your educational programs or Certified Internal Auditing (CIA) certification; or to boost your resume/CV by adding a new and in-demand skill.
- Accounting and audit students
- Small business owners
- Employees looking to add new skills to their resumes/CV
- Anyone interested in auditing
- Internal auditors performing SOX audits.
Welcome to the first course in the Internal Auditing series! This first part is designed to help you perform internal control audits over financial reporting. These types of audits are usually integrated with financial statement audits. This class is designed for beginners. We will learn terminology and have mini-quizzes along the way to retain the content. Also, we will put into practice what we learn with an audit scenario at the end of the course.
There are many important terms in the world of internal auditing; however, I will focus on the a few of the most important and widely-used terms that you will hear throughout the course or in real-life when performing internal audits.
Audits involve examining and analyzing evidence and then reporting on their findings. This is true of both large and small businesses. This lesson will help familiarize you with key concepts in audit, which will enable you to begin performing internal audits at your organization.
What are audit frameworks and standards? How are they used? In this lesson, I will explain them both and how they are related and why they are important.
Audit evidence is evidence obtained during an audit (usually in the Fieldwork phase) and recorded in the audit working paper documentation. Audit working paper documentation includes, for example, audit programs, analyses, issues memoranda, summaries of significant findings or issues, letters of confirmation and representation, checklists, abstracts or copies of important documents, correspondence (including e-mail) concerning significant findings or issues, and schedules of the work the auditor performed.
In the Planning phase, the auditor plans the scope (time period covered) of the audit; determines the audit objective; understands what documentation should be examined; collects documents from previous audits; sends questionnaires or surveys to the auditees (i.e. business unit being audited) for background information about the audit subject (i.e. process owners, users, customers, activity details, flowcharts, policies used, etc.)
The Memorandum of Discussion is used to document all communications throughout the course of the audit. This document will then become an audit working paper that you can use as evidence to support audit conclusions and should be retained in the audit project folder or audit working paper software.
Risks are the events that prevent organizations from meeting their goals. Identifying risks will lead you to the activities (controls) that you will need to examine in the Fieldwork phase to see whether they are working properly to prevent the risk. This template will walk you through the risk assessment process for your audit.
The purpose of this lecture is to identify and document the specific controls that will be examined during the Fieldwork phase. Effective controls reduce the risk of asset loss and help ensure that plan information is complete and accurate, financial statements are reliable, and that the plan complies with laws and regulations.
The audit work plan (also called the Audit program) are lists of audit procedures to be performed by auditors to obtain sufficient, appropriate evidence. The individual procedures are determined after obtaining an understanding of the organization, the financial reporting processes, and determining the audit strategy.
The auditor's objective in an audit of internal control over financial reporting is to express an opinion on the effectiveness of the company's internal control over financial reporting. The purpose of the internal controls audit over financial reporting is to understand whether any events present a reasonable possibility of material misstatement to the financial statements.