Audit essentials - Risk assessment and internal controls - Workshop 2016

Description

The principal behind internal control which is of interests to auditors, is that the reliance on internal control will reduce the amount of substantive testing of transactions and resultant balances in the ledger accounts required.  The operation of internal controls should ensure the completeness and accuracy of the accounting records. If the auditor is satisfied that the internal control system is functioning, there should be a reduced risk of error in the accounting records.

Course Outline
• Concept of business risk
• Assessing the kinds of business risk which clients are subject to
• Relating business risk to audit risk
• Identifying internal controls of various operational cycles
• The five components of internal control namely the control environment, the entity’s risk assessment process, the information system, control activities and monitoring of controls
• Specific control procedures
• Limitations on the effectiveness of internal controls
• Communication with the client

Learning objectives

The following are the learning outcomes of the program:
• Evaluate and discuss the impact of business risk on the conduct of an audit
• Understand the concept of risk-based approach to auditing
• Carry out risk assessment and identify the components of internal control and recognising significant characteristics of the entity and its environment that are relevant to assessing risks of material misstatement – ISA 315 (Revised) Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment
• Ascertain how different aspects of an entity’s internal control system may affect the audit
• Distinguish between control objectives, control procedures and tests of controls
• Improving communication with the client - ISA 265 – Communicating Deficiencies in Internal Control to Those Charged with Governance and Management
• Hear insights from the following subject matter expert:

Yung Chuen Seng                                    
Chuen Seng YUNG has 40 years of working experience in auditing, financial accounting, treasury functions, administration, general management , lecturing and corporate training. He started his career in a big four audit firm as an articled student and graduated as an accountant. Thereafter, he assumed positions of Accountant, Finance and Administration Manager, General Manager and Executive Director in various business sectors, including financial, retailing, distribution, healthcare and multi-level marketing.
He is currently an associate consultant and a free-lance trainer. Among the programmes he has developed and trained on are on areas covering auditing, budgeting, practical accounting skills, finance for non-finance personnel, supervisory and management skills, teambuilding cum leadership workshops and communication skills.
He is an experienced and enthusiastic trainer and has trained for various accounting associations, training and event organisers, multi-national and local companies.

Audience