This interactive module examines the respective responsibilities of management and auditors related to internal control and the role of internal control considerations in governmental audits. Participants will explore how to identify and evaluate control deficiencies, including the differences between deficiencies arising from control design and those resulting from operating effectiveness.

Through practical governmental audit scenarios and engaging activities, learners will examine the three types of internal control deficiencies, their underlying causes, and their potential impact on the audit process. The module also addresses relevant GAAS and GAGAS (Yellow Book) requirements related to internal control over financial reporting, along with key considerations related to compliance.

Participants will evaluate the severity of identified deficiencies, determine appropriate audit responses, and explore effective approaches for communicating findings and recommendations. By applying these concepts to realistic governmental audit scenarios, learners will strengthen their ability to assess audit risk, communicate control deficiencies clearly, and develop practical recommendations for improving internal controls.