This interactive course focuses on evaluating the design and implementation of internal controls during a governmental audit engagement. Participants will explore how an effective understanding of process-level controls can influence the risk assessment process and help auditors design efficient and appropriate audit procedures.

Through a multi-tiered case study, participants will simulate interviews with personnel from a governmental audit entity and work through the process of gathering and evaluating information about internal controls. The case study is designed to reflect situations auditors may encounter when there are no prior-year workpapers available for reference, such as when auditing a new entity.

Participants will practice asking appropriate follow-up questions during interviews, using the information gathered to understand and document process-level controls, and determining appropriate procedures to verify whether controls have been properly designed and implemented. The course also addresses how auditors can identify deficiencies in both the design and implementation of internal controls.

The course emphasizes the connection between understanding internal controls, assessing audit risk, and designing effective audit procedures. Participants will also consider how stronger inquiries and clearer walkthrough documentation can improve the quality of internal control documentation and support effective supervision and review throughout a governmental audit engagement.