Obtaining an Understanding of Internal Control

Prerequisites

None

Highlights

Various definitions and aspects of internal control, including separation of duties and safeguarding of assets Key aspects of internal control from various organizations, such as COSO, SEC, and PCAOB Factors to consider, for example, industry, regulation, and nature of the entity Risk assessment procedures, namely inquiry, analytical procedures, and observation and inspection, as well as brainstorming

Objectives

• Recognize the importance of understanding internal control.
• Recall factors and procedures that an auditor should consider when obtaining an understanding of the entity and its environment, including internal control.
• Recall definitions and key aspects of internal control from various organizations.