1. Internal control in financial statement audit

2. Barker Group interview on Tuesday Find information to assess overall inherent risk Understand line items on financial statements Find information to assess overall control risk

4. General

5. Control environment

6. Risk assessment

7. Financial Reporting

8. Posting

9. Adjusting entries

10. Financial report prep

11. General IT controls

12. System software management

13. Access security

14. Networking and infrastructure

15. Application system management

16. Monitoring internal controls

17. Application or transaction level

18. Information and communication

19. Initiation, authorization, recording, processing, and reporting

20. Accounting records

21. Control Activities

22. IT application controls

23. Limitations of internal control

24. Override

25. Collusion

26. ErrorAssess Control Risk

27. Assess Control Risk Rely upon controls Substantive strategy Extent of testing depends on detection risk

28. Assess Control Risk Rely upon controls Substantive strategy Reliance strategy Identify control upon which you rely for an assertion Test Controls Conclude on achieved level of control

30. Inquiry

31. Observe

32. Inspect documents and records

34. Communication of control deficiencies Control deficiency: does not prevent or detect and correct a misstatement Significant deficiency Important enough to merit attention Material weakness Reasonable possibility that a material misstatement will not be prevented or detected and corrected Significant deficiencies and material weaknesses are reported to management and board.