Applying the PCAOB’s Risk Assessment Standards to Smaller Public Entities

This course is designed primarily to teach practical ways to implement the PCAOB's new risk assessment standards. The course is focused on smaller public entities. It includes models for documenting 1) entity-wide controls, 2) financial statement closing process controls, 3) controls over routine processes for significant accounts, and 4) significant accounts, underlying processes, inherent, control and combined risk. The documentation models are suitable for reporting on internal controls and were derived from an actual smaller public entity. The auditor will clearly see the link between the control risk and an appropriate response. Included are examples of audit programs to test entity wide and financial statement closing process controls and control matrix templates with pre-populated "what can go wrong questions" for routine processes. In summary, the course presents a cost effective approach to auditing the smaller public entity.

Objectives:

• Practically implement the PCAOB's new risk assessment standards
• Document entity-wide controls, financial statement closing process controls, controls over routine processes for significant accounts, and significant accounts, underlying processes, inherent, control and combined risk
• Properly link control risk and an appropriate response
• Implement a cost effective approach to auditing the smaller public entity

Prerequisite: None

Advanced Preparation: None