DESCRIPTION
This module focuses on the process for evaluating the design and implementation of internal controls via an interactive case study in IC-1, utilizing simulated interviews with client personnel. Throughout the 4-part case study, participants will learn about performing and documenting walkthroughs when there are no prior year workpapers available for reference (on a new client, for example), including how to ask appropriate follow-up questions during client interviews, how to select the appropriate procedure(s) to verify implementation, how to document work performed in IC-1, and how to identify deficiencies in design and deficiencies in implementation.
LEARNING OBJECTIVES
- Identify and utilize resources in the audit file for information on the client and its business
- List the four-step process for updating internal control walkthroughs
- Use the four-step process to effectively perform walkthroughs and observations to evaluate the design and implementation of the client’s system of internal control
