Learning Objectives

Understand the importance of internal control to management and auditors.

Know the definition of internal control.

Know what controls are relevant to the audit.

Identify the components of internal control.

Understand the effect of information technology on internal control.

Understand how to plan an audit strategy.

Know how to develop an understanding of an entity's internal control.

Identify the tools available for documenting the understanding of internal control.

Know how to assess the level of control risk.

Know the types of tests of controls.

Understand audit strategies for the nature, timing, and extent of substantive procedures based on different levels of detection risk.

Understand the considerations for the timing of audit procedures.

Understand how to assess control risk when an entity's accounting transactions are processed by a service organization.

Understand about the auditor's communication of internal control-related matters.

Identify and understand general and application controls.

Understand how to flowchart an accounting cycle.