New SASs require auditors to obtain a more in-depth understanding of the client and its environment, including internal control, to more properly apply the existing audit risk model. In addition, recent guidance from various regulatory bodies focuses on strengthening the quality of auditor communications concerning internal control matters noted in a financial statement audit. Now more than ever, the risk of not performing the strongest and most effective audit procedures is significant. Auditors often struggle with efficiently performing and documenting internal-control testing, designing strong analytical procedures, or effectively using other more complex substantive testing techniques. As a result, auditors tend to rely on "same as last year" in designing their audit plan, where a fresh approach could result in a stronger, more effective, and more profitable audit. This course will provide proven best practices for testing internal controls and performing substantive fieldwork for all your audit clients, including for-profit business enterprises, nonprofits, and local governments.

Major topics include:

• Understand the impact on internal control and substantive testing resulting from recent SASs related to risk assessment and communicating internal control matters.
• Understand what everyone should know about internal controls, including the necessary components of a sound internal-control system.
• Compare internal control considerations between various types of audit clients (including Sarbanes-Oxley Section 404 and Yellow Book).
• Practice identifying the most effective and efficient controls to test in order to reduce substantive testing on a financial-statement audit.
• Discover best practices to better design and document tests of internal controls.
• Master maximizing the use of strong analytic procedures in order to reduce other substantive testing.
• Learn the art of developing appropriate expectations to use for substantive analytic tests, regardless of type of entity being audited.
• Practice resolving differences between expected and actual financial results when performing analytic procedures.
• Understand the proper way to plan and perform sampling techniques.
• Discover ways to use technology to perform better and faster audit procedures.
• Practice properly considering, documenting, and communicating the impact of internal-control deficiencies and financial-statement errors to the client.

Designed for: Experienced staff and above in public accounting who wish to learn how to perform a better audit, as well as comply with the new SASs related to internal controls. While this course qualifies for Yellow Book CPE credits, it is also highly applicable to audits of for-profit companies.

Level of knowledge: Intermediate

Field of study: Auditing