This course covers the essential tools you need to perform internal control related services. It discusses your clients' responsibility to design and implement programs and controls to prevent, deter, and detect fraud, also touching on internal control over financial reporting in accordance with SOX 404. In addition, the course covers Management Antifraud Programs and Controls and the risk factors included in SAS No. 99. The course also provides useful indicators and checklists such as indicators of financial crime, the ACFE's fraud prevention checkup, internal control assessment form, computer applications checklist, and financial reporting information systems and controls checklist.
Upon successful completion of this course, participants will be able to:
- Identify the purposes of internal auditing and topics covered on the Certified Internal Auditor exam.
- Recognize the aspects of internal auditing, including activities, tools, testing steps, reporting requirements, and the stages in the audit process.
- Recognize the various types of audits and what information an auditor examines and reports upon for each.
- Identify the components of internal control and their purpose and function in an audit.
- Recognize the concepts and auditing requirements contained in the Foreign Corrupt Practices Act and the Sarbanes-Oxley Act (SOX).
- Recognize sample audit processes and procedures for an organization.
- Recognize the components of Sas 99 - Consideration of Fraud in a Financial Statement Audit, including management's and auditor's antifraud programs, controls, and responses.
- Identify risk factors related to misstatements arising from misappropriation of assets and fraudulent financial reporting.
- Identify opportunities for fraud and techniques for fraud prevention.
- Recognize the concepts and definitions of tests of controls,sampling risk, and control risk.
- Recognize the differences between judgment (nonstatistical) sampling and statistical sampling.
- Identify the various methods of sampling.
- Recognize the components of fraud prevention and how to prevent fraud.
- Identify key concepts of and differences between auditing and fraud examination.
- Recognize what services a forensic accountant provides and what investigative procedures are performed in forensic accounting.
- Identify the types of various frauds and symptoms of fraud.
- Identify the different tools and the use of technology in forensic accounting and fraud detection.
Table of Contents
Chapter 1 – Internal Control and the Internal Audit Function
Internal Auditing Aspects
Internal Audit Reports
Appraising Internal Control
The Control Environment
Information and Communication Systems Support
The Role of the Internal Audit Function
The Cycle Approach
Identifying Deficiencies in Internal Control and Fraud
The Foreign Corrupt Practices Act
The Sarbanes-Oxley Act
Historical Reporting vs. New Reporting
Section 404 Reporting
COSO Integrated Framework 2013
Key Points of Auditing Standard No. 5
Chapter 1 Review Questions
Chapter 2 – Internal Audit of Financial Statement Accounts
Financial Statement Assertions
Auditing Objectives and Procedures
Sample Audit Program for Cash in Bank
Sample Audit Program for Trade Accounts and Notes Receivable
Sample Audit Program for Inventory
Sample Audit Program for Fixed Assets
Sample Audit Program for Prepaid Expenses and Deferred Charges
Sample Audit Program for Accounts Payable
Sample Audit Program for Stockholders’ Equity
Sample Audit Program for Sales and Other Types of Income
Sample Audit Program for Expense Items
AU 240 – Consideration of Fraud in a Financial Statement Audit
Risk Factors Relating to Misstatements Arising from Fraudulent Financial Reporting
Risk Factors Relating to Misstatements Arising from Misappropriation of Assets
Techniques for Fraud Prevention
Codes of Conduct
Definition of Fraud
Increase Awareness of Risks
Technology as a Tool
Use of Spreadsheets
Use of Databases
Fraud Response Plan
Powers of the Group
Responsibilities of the Group
Whom to Contact for Assistance
Contacting the Police
Chapter 2 Review Questions
Chapter 3 – Statistical Sampling in Tests of Controls
Tests of Controls
Methods of Choosing a Random Sample
Random Number Sampling Technique (Using a Random Number Table)
Systematic Sampling Technique
5% Risk of Control Risk Too Low
10% Risk of Assessing Control Risk Too Low
5% Risk of Assessing Control Risk Too Low
10% Risk of Assessing Control Risk Too Low
Judgment (Nonstatistical) Sampling
Random Number Table
Chapter 3 Review Questions
Chapter 4 – Fraud Prevention, Fraud Detection, and Forensic Accounting
Forensic Accounting and Auditing
Forensic Accounting and Fraud Examination
Why is Forensic Accounting Necessary?
How Fraud Losses Breakdown
When Does One Employ a Forensic Accountant?
Where is a Forensic Accountant Used?
Litigation Support Consulting:
Expert Witness Engagements
Divorce Business Valuations
Lost Earnings Engagements
How Does A Forensic Accountant Work?
Forensic Specialists’ Investigation Procedure
Forensic Computing and the Use of Technology
IT and Data Mining Used To Detect Corporate Fraud
Cases in Forensic Accounting
Case 1 – Purchase of a Business
Statements of Fact
Conclusions of Law
Case 2 – Tracing the Money Trail of Terrorism
Certified Fraud Examiners
Certified Insolvency and Reorganization Accountant (CIRA)
Indicators of Financial Crime
Red Flags of Employee Behavior
Red Flags of Organizational Behavior
Red Flags of Money Laundering or Terrorist Financing
Internal Control Assessment Form
I. Document Your Understanding of the Control Environment
II. Determine Other Areas for Evaluation
III. Assess Lack of Segregation of Duties
IV. Assess the Risk of Management Override
V. Interpret Results
VI. Document Your Conclusion with Respect to Internal Controls
Computer Applications Checklist—Medium to Large Business
I. Computer Hardware
II. Computer Software
III. Computer Control Environment
IV. Outside Computer Service Organizations
Financial Reporting Information Systems and Controls Checklist - Medium to Large Business
I. Revenue Cycle
II. Cash Receipts
III. Purchasing Cycle
VI. Property, Plant, and Equipment
VII. Payroll Cycle
Chapter 4 Review Questions
Review Question Answers and Rationales
Choose Your Preferred Format
Get immediate access to a robust collection of learning and reference materials, allowing you to dive deep into the information you need. Our self-study materials are authored by top-quality, industry experts who focus on helping you grasp concepts quickly using real-life examples. Download your CPE to any device, and take it with you so you can learn when and wherever you want. Complete your CPE with an online exam, and enjoy instant grading with the option to print your certificate immediately upon passing.
Our self-study materials are authored by top-quality, industry experts. You’ll receive a bound notebook of all the course materials, shipped to you within one business day. In addition, you’ll also have full online access. Each self-study package includes a robust collection of learning and reference materials to help you cover the information efficiently and put it into practice immediately.
Experience high-quality instruction with our Self-Study Videos, available to you 24/7. With more than 80+ videos currently in the Western CPE Self-Study Video library, you can see and hear our expert instructors deliver the information you need in a dynamic way that allows you to immediately apply your learning. Unlike a live course or webcast, you can complete the course on your own time, playing and pausing as needed. Self-Study Videos allow you to complete your CPE requirements on your own time.
Back to top