Auditing Internal Controls for Governments

Learning Objectives

• To identify the COSO Framework for Internal Control.
• To describe audit procedures for conducting an audit of internal controls for a government entity.
• To describe internal control standards in the Green Book.
• To recognize the form for internal control documentation.
• To describe internal control components that are often considered to be the most important part of the internal control framework.
• To determine a risk response where no action is taken to respond to the risk based on the insignificance of the risk.
• To identify the correct equation for audit risk.

Course Description

So why is gaining an understanding of controls necessary?

The understanding of internal controls assists the auditor in assessing the risks of material misstatement, which in turn assists in designing and implementing audit responses that are tailored to a client's assessed risks. This is true regardless of the size of the entity.

Without properly understanding controls, an auditor may not identify risks associated with the entity's internal controls and therefore may not design and implement appropriate responses.

Auditing internal controls for a government entity is more subjective than auditing other areas of a client. There is no “one size fits all” set of internal controls. This online CPE course reviews the COSO Framework for Internal Control and discusses auditing a client’s internal controls. From conducting walkthroughs to hypothesis testing, we will review the various aspects of auditing and evaluating internal controls.

This online continuing education course will review the component evaluation of the internal controls and will discuss the difference between sampling and using data analytics to test populations. We will specifically address the government auditing standards as they relate to internal controls. 

Major topics covered in this online CPE Auditing webinar:

• A Review of Internal Control
• The COSO Framework for Internal Control
• Auditing Internal Control Components
• Auditing Internal Controls: Relying on the Internal Auditor's Work
• Audit Sampling
• Evaluating Internal Controls

Overview

• Financial Statement assertions

  7 mins
• Government auditing ethics

  18 mins
• IIA survey - Top 5 risks for 2022

  35 mins
• Persuasiveness of audit evidence

  50 mins
• Certain risk disclosures

  69 mins
• COSO framework for internal control

  82 mins
• Statistical sampling

  93 mins
• Evaluating internal controls

  96 mins