• Describe the requirement to evaluate the design and implementation of internal control as part of the risk assessment process
• Identify the considerations when deciding whether it is necessary or desirable to test the operating effectiveness of internal controls to reduce assessed risk of material misstatement
• Recognize special considerations, such as use of service organization control reports or varying audit objectives

• Evaluating the Design & Implementation of Internal Controls: ◦ The typical types and flow of an internal control system ◦ Documenting an understanding of the design of internal control, including both entity-level and transactional-level internal controls ◦ Identifying the key controls that significantly reduce the possibility of material misstatement due to fraud or error ◦ Appropriately verifying that key controls have been implemented ◦ IT control considerations, including general and application controls
• Testing Controls for Operating Effectiveness: ◦ What audit evidence is required to reduce control risk below high ◦ Understanding when a control reliance strategy may be either necessary or desirable in an audit plan ◦ The impact of reduced control risk on the nature, timing and extent of substantive audit procedures
• Special considerations: ◦ Service Organization Control (SOC) Report special considerations ◦ Smaller entity considerations ◦ Varying audit objectives
• Extensive illustrative examples will be used to reinforce a practical understanding of the most critical principles and standards that support a high-quality, insightful, and profitable engagement

• None

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