Lesson: Public Company Integrated Audits

In this lesson, Nick Palazzolo, CPA, discusses the concept of public company integrated audits, which are required for companies with market capitalizations of more than $75 million. Unlike normal audits, integrated audits require the CPA firm to express an opinion on a company's internal control report in addition to the financial statements. Nick explains that integrated audits focus on both financial statement material statements and internal controls, ultimately providing more certainty for companies undergoing this process. Additionally, Nick touches on audit risk formulas, discussing how auditors can reduce detection risk while considering the costs of substantive testing and control risks.