Lesson: Internal Controls & Information Technology Controls: Design, Testing, & Deficiencies Summary

Instructor: Nick Palazzolo

This lesson provides an overview of the risks that can lead to deficiencies or issues in internal controls, as well as the proper establishment, operation, and maintenance of those controls. Additionally, the significant differences between significant deficiencies and material weaknesses are emphasized. The lesson also delves into auditor responsibilities during an audit in relation to internal controls, highlighting the role of management in design, implementation, and maintenance. Finally, the importance of IT controls and their potential role in enhancing audit effectiveness and efficiency are discussed.

Updated: June 22, 2023 Create an account

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Internal Controls & Information Technology Controls: Design, Testing, & Deficiencies Overview

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Examples of Internal Controls

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Transcript

Instructor: Nick Palazzolo

Nick Palazzolo is head instructor of ExamPrep.ai CPA Review. Nick's teaching style is engaging & upbeat, combining practical Big 4 tax & assurance expertise with years of 1-on-1 coaching. His lessons are concise and emphasize what you need to know to pass. Whether you're a recent grad or working full-time, we’re confident you can conquer your CPA exams with Nick’s review.

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Another great lesson in the books. We are moving on after this nice little summary. We're going to move on and power through all these lessons. Do your multiple choice questions. Do your sims. Having a great time while doing it. Now, in summary, first off, we want to make sure we understand the risks that can lead to deficiencies or issues in internal controls. Instead of saying the word deficiency over and over, just say issues. We also want to be familiar with how to properly establish those internal controls, how the internal audit function should operate, and how to maintain the controls effectively. We want to understand the importance and difference between these significant deficiencies and material weaknesses. Obviously, quite important and pervasive throughout the entire course. We will also want to be able to explain the auditor's responsibilities during an audit when it comes to internal controls. What are our responsibilities? What are management's responsibilities? Remember, design, implementation, and maintenance are management. Lastly, we want to understand the importance of IT controls for an entity and how we can use IT as the auditor to conduct a more effective and efficient audit. We want to make sure that our audit is effective and efficient. Effective meaning we get the right opinion, and efficient meaning we're not spending too much time to do that. We're not going down rabbit holes. Thank you all for joining. Another great lesson, like I said, in the books. Keep powering through. Do some SIMs. Do some multiple choice. Look at your flashcards. This course is full, inclusive. We want to make sure that everything comes together. You want to use everything here at your disposal to help you pass. It all works together, feeds together. Enough of my preaching. Get to it.

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Substantive Testing & Internal Controls

Module: 3 Concepts, 45 Lessons

Internal Controls & Information Technology Controls: Design, Testing, & Deficiencies Overview

0:50

Internal Controls & Information Technology Controls: Design, Testing, & Deficiencies Objectives

1:37

Introduction to Internal Controls and Information Technology Controls

1:49

Examples of Internal Controls