TAIC
SURGENT MCCOYS PRACTICAL GUIDE TO BETTER SUBSTANTIVE TESTING AND AUDITING OF INTERNAL CONTROLS

Generally accepted auditing standards require auditors to obtain an 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:

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

Learning Objectices:

• Describe proper application of professional and regulatory standards related to evaluating the design and implementation, and potentially the operating effectiveness, of internal control over reliable financial reporting
• Discuss how control risk assessments may alter the nature, timing and extent of detailed audit plans
• Explain how to leverage substantive analytical procedures to address audit risk

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 SASs related to internal controls.
Level of Knowledge: Intermediate
Prerequisite: Experience with designing, evaluating or monitoring internal controls
Advanced Preparation: None
CFP: No
Yellow Book: No
New: No
Credits: 8
Field of Study: Auditing