Event Description

Obtaining an understanding of the entity and its environment is part of assessing risk of material misstatement, in order to design the nature, timing and extent of further audit procedures necessary to obtain sufficient appropriate audit evidence to support the auditor’s report. A critical component of understanding the entity and its environment is to evaluate the design and implementation of internal control over financial reporting.

Objectives

Describe how to properly obtain an understanding of the entity and its environment, including internal control in order to properly assess risk of material misstatementDiscuss the COSO Internal Control – Integrated FrameworkExplain important considerations in documenting a systems description narrativeDescribe how to evaluate internal control design and implementation for deficiencies and how to apply insights to the process of assessing risk of material misstatement