Page 21 - JoFA_2022

LEARNING RESOURCES

COSO Internal Control Certificate Program
Harding said SAS 145 emphasizes the link
between risk assessment and the design and per- The updated COSO Internal Control Certificate
formance of audit procedures. This link means that offers you a unique opportunity to develop
auditors might need to modify audit procedures to your expertise in designing, implementing, and
consider additional risks in the pandemic-related monitoring a system of internal control in to-
environment. For example, junior audit staff who day’s technology-driven world. Nine self-paced
traditionally perform inventory counts may need to modules provide you with the knowledge
be supervised more closely by a more senior man- necessary to understand and apply COSO’s
ager if inventory is being counted remotely rather Internal Control — Integrated Framework.
than in person, particularly if clients are operating tinyurl.com/2rztak3j
the cameras.
CPE SELF-STUDY
AUTOMATION DRIVES INNOVATION
Risk assessment is an area that’s well suited for Risk Assessment During the Recovery
improvements in processes, completeness, and qual- This course will review the risk assessment
ity offered by the use of audit data analytics. standard requirements and discuss the impor-
“Being able to gather all the underlying data and tance of risk assessment during the pandemic
run it through various analytical routines really pro- recovery period. It will help you to improve
vides a lot of insight into where you want to focus audit quality by avoiding common challenges.
your attention in the audit and where there may be
tinyurl.com/huyxrwuh
likely sources of misstatement,” Manasses said. “You
can even bifurcate your population in response to a CPE SELF-STUDY
risk by directing your attention to notable items.”
Visualization tools can play an important role in Guide to Audit Data Analytics
improving risk assessment. They can help transform In your next financial statement audit, apply
a series of otherwise unnoticed numbers into a the benefits of audit data analytics. We worked
vibrant picture that tells a story about risks that with the profession’s leading experts to show
merit further analysis and audit procedures. you how.
tinyurl.com/32mtj8nh
FINANCIAL REPORTING FRAMEWORK IS A KEY
SAS 145 requires the auditor to understand how PUBLICATION
the financial reporting framework relates to a
particular client and its internal control. FASB’s For more information or to make a purchase, go to
new revenue recognition standard, for example, is aicpa.org/cpe-learning or call the Institute at 888-777-7077.
leading auditors to pay close attention to controls
that exist around contracts.
“We’re learning a lot more about our clients, and
I knew we would, as we really get into that revenue
standard,” Harding said. “Better understanding of
a particular client and what its controls are, how
it handles contracts, and how the contracts work AICPA RESOURCES
could affect our assessment of whether revenue is
Articles
being properly recognized under the new account-
“New Standard Sharpens Focus on Risk-Based Auditing,” JofA, Oct. 12, 2021,
ing rules.”
tinyurl.com/brhmmpv5
This gives auditors a better understanding of a
client’s customers and how they provide services or “Making Audits More Effective Through Data Visualization,” JofA, May 2021,
tinyurl.com/43a76kww
products to those customers, which provides ad-
ditional information on risks that can be considered “Assessing Audit Risks During the Pandemic,” JofA, Dec. 9, 2020,
in the risk assessment process. tinyurl.com/st4d5jjt
Note: The AICPA also is working to update the Audit Guide Assessing and
USE PRACTICE AIDS PROPERLY Responding to Audit Risk in a Financial Statement Audit, with plans to focus
Third-party audit practice aids typically include lan- the guide on applying risk assessment in audits of less complex entities.
guage stating that they are tools to be used within

journalofaccountancy.com January 2022 | 19