The chair of the Task Force of the AICPA Audit Guide Assessing and Responding to Audit Risk in a Financial Statement Audit will review the basic control assessment requirements for all audited entities. Implications for compliance and efficiency in smaller entities will be illustrated with examples. Implications of non-compliance with required procedures will be discussed.
1) Get an overview of required controls assessments and gathering of evidence of operation for all entities
2) Discuss how to assess the extent of assurance/risk to be taken from various control related procedures
3) Determine the trade-offs of different strategies in auditing key accounts such as revenues
4) Discover implications of non-conformity with basic requirements
5) Understanding of the opportunities for testing controls and greater audit efficiencies in smaller audit engagements
6) Identifying the areas of the audit most likely to benefit from more controls reliance
7) Discuss the pitfalls and dangers of failing to make a proper assessment of the entity system of internal control