Self-Study
6
Basic
Auditing
There are no prerequisites

Course Description

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.



Instructor

Delta Publishing

For many years, Delta Publishing has offered a wide variety of continuing education courses for financial professionals. Topics covered by Delta’s courses include accounting, financial management, budgeting, investments, financial statement reporting, business management, IFRS, ethics, valuations, real estate, and business writing. The diversity and breadth of Delta’s course offerings make the company a prolific and unique contributor to the CPE world. Delta’s well-credentialed authors and contributors have also been published in numerous academic and professional journals and quoted by some of the leading financial media outlets.



Course Specifics

Auditing
Feb 9, 2018
There are no prerequisites
SS1120369
184
None


Compliance Information

103220
IRS Provider #: 0MYXB
Qualifies for CA Fraud: 4 Aud, 2 CA Fraud


Learning Objectives

Upon successful completion of this course, participants will be able to:

Chapter 1

  • 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).

Chapter 2

  • 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.

Chapter 3

  • 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.

Chapter 4

  • 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

Preface

Chapter 1 – Internal Control and the Internal Audit Function

Learning Objectives

Internal Auditing Aspects

Internal Audit Reports

Audit Program

Compliance Auditing

Operational Auditing

Management Auditing

Functional Auditing

Financial Auditing

Appraising Internal Control

The Control Environment

Risk Assessment

Control Activities

Information and Communication Systems Support

Monitoring

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

Learning Objectives

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

Incentives/Pressures

Opportunities

Attitudes/Rationalizations

Risk Factors Relating to Misstatements Arising from Misappropriation of Assets

Incentives/Pressures

Opportunities

Attitudes/Rationalizations

Techniques for Fraud Prevention

Recruitment

On-Going Process

Codes of Conduct

Definition of Fraud

Whistleblowing Policy

Increase Awareness of Risks

Implement Controls

Data Mining

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

Learning Objectives

Tests of Controls

Statistical Sampling

Sampling Risk

Methods of Choosing a Random Sample

Random Number Sampling Technique (Using a Random Number Table)

Systematic Sampling Technique

Attribute Sampling

Discovery Sampling

Multistage Sampling

5% Risk of Control Risk Too Low

10% Risk of Assessing Control Risk Too Low

5% Risk of Assessing Control Risk Too Low

Variables Sampling

10% Risk of Assessing Control Risk Too Low

Stratified Sampling

Judgment (Nonstatistical) Sampling

Random Number Table

Chapter 3 Review Questions

Chapter 4 – Fraud Prevention, Fraud Detection, and Forensic Accounting

Learning Objectives

Fraud Prevention

Forensic Accounting and Auditing

Forensic Accounting and Fraud Examination

Why is Forensic Accounting Necessary?

Investigative Services

Corporate Services

Average Loss*

How Fraud Losses Breakdown

When Does One Employ a Forensic Accountant?

Litigation Support

Investigations

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

Certifications

Certified Fraud Examiners

Certified Insolvency and Reorganization Accountant (CIRA)

Implications

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

IV. Inventory

V. Financing

VI. Property, Plant, and Equipment

VII. Payroll Cycle

Chapter 4 Review Questions

Review Question Answers and Rationales

Chapter 1

Chapter 2

Chapter 3

Chapter 4

Glossary

Index

Qualified Assessment

Answer Sheet

Course Evaluation



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