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Track 10 · Advanced

Auditing and Internal Controls

Assertions, materiality, risk, controls, evidence, sampling, testing, fraud indicators and audit adjustments.

Lessons refer to International Standards on Auditing concepts in summary. They don't reproduce standards text.

Lessons
13
Exercises
96
Time
5 h 45 min

Module 1

Audit foundations

  1. 01

    The purpose of a financial statement audit

    Explain reasonable assurance and the auditor's opinion.

    Classification · Concept checks · ISA 200

    Members15 min
  2. 02

    Audit assertions

    Match risks and procedures to the assertions they address.

    Worksheets · Classification · Concept checks · ISA 315

    Members20 min
  3. 03

    Materiality

    Set overall and performance materiality from a benchmark and apply it.

    Worksheets · Calculations · Classification · Concept checks · Simulator · ISA 320

    Members35 min
  4. 04

    Audit risk

    Assess inherent and control risk and plan the response.

    Worksheets · Calculations · Classification · Concept checks · ISA 315, ISA 330

    Members30 min

Module 2

Internal control

  1. 01

    Internal control principles

    Describe the components of internal control and common control activities.

    Classification · Concept checks · Sequencing · COSO 2013 (summary)

    Members25 min
  2. 02

    Segregation of duties

    Spot incompatible duties in a small finance team and propose fixes.

    Worksheets · Classification · Concept checks

    Members25 min
  3. 03

    Testing controls

    Design tests of controls and evaluate deviations.

    Worksheets · Calculations · Classification · Concept checks · Sequencing

    Members25 min

Module 3

Evidence and conclusions

  1. 01

    Audit evidence

    Rank evidence by reliability and relevance.

    Worksheets · Classification · Concept checks · Sequencing · ISA 500

    Members20 min
  2. 02

    Sampling fundamentals

    Select a sample and project misstatements.

    Worksheets · Calculations · Classification · Concept checks · ISA 530

    Members30 min
  3. 03

    Substantive testing

    Perform analytical procedures and tests of detail on revenue and receivables.

    Worksheets · Classification · Concept checks · Sequencing · Simulator · ISA 330, ISA 500, ISA 505, ISA 520

    Members35 min
  4. 04

    Fraud risk indicators

    Recognise red flags in journal entries and documents.

    Worksheets · Classification · Concept checks · Sequencing · ISA 240

    Members30 min
  5. 05

    Audit adjustments and deficiencies

    Propose adjusting entries for misstatements and evaluate whether they are material.

    Journal entries · Worksheets · Calculations · Classification · Concept checks · Simulator · ISA 450, ISA 265

    Members35 min
  6. 06

    Documentation and professional judgment

    Document a judgment so another auditor can follow it.

    Calculations · Classification · Concept checks · Sequencing · ISA 230

    Members20 min