Internal Control: Understanding the Requirements of SAS 145

Risk assessment and internal control continue to be common problem areas in audit quality reviews and peer review. These SAS 145 CPE courses focus on the requirements auditors need to understand when identifying and assessing risks of material misstatement under U.S. GAAS.

The collection includes two self-study courses eligible for 3.0 CPE credits. The courses explain the risk assessment procedures required by SAS 145 and provide practical guidance for understanding the entity and its environment, understanding the entity's system of internal control, identifying relevant controls, and evaluating whether those controls are designed and implemented appropriately.

Topics covered include:

• Required risk assessment procedures under SAS 145
• Understanding the entity and its environment
• Understanding the system of internal control
• Identifying relevant controls
• Evaluating the design and implementation of controls
• Performing walkthroughs and documenting the auditor's understanding

Further details

SAS 145 amended AU-C section 315 and sharpened the auditor's risk-assessment requirements, particularly the work required to understand the entity and its system of internal control. The first course focuses on the risk assessment procedures used to build that understanding, including the entity and its environment, the components of the system of internal control, and the controls the auditor identifies as relevant to the audit.

The second course moves from identifying controls to evaluating them. Learners consider the types of controls that may be relevant, how to evaluate design and implementation, and how walkthroughs can be used to understand the flow of transactions and confirm whether identified controls have actually been implemented. The emphasis is practical: translating the requirements of SAS 145 into audit work that is sufficiently thoughtful and sufficiently documented to withstand engagement review and peer review.

Although SAS 145 is a U.S. GAAS standard, many of the underlying risk-assessment and internal-control concepts will also be familiar to auditors working under PCAOB standards or International Standards on Auditing. The collection therefore provides a useful framework for understanding why internal control matters even when the audit approach is primarily substantive.

Who will benefit

This collection is especially useful for auditors performing engagements under U.S. GAAS, including staff, senior accountants, managers, and reviewers responsible for risk assessment and internal-control documentation. Firms that have received peer-review comments - or simply want more consistent execution of walkthroughs, design-and-implementation work, and AU-C 315 documentation - should also find the training directly relevant.

Value proposition

Purchase both courses for $269 instead of $360 if purchased separately—a savings of $91.

Interested in group discounts? Contact us today to learn more.