In every audit, the auditor is required to identify and assess the risks of material misstatement, whether due to fraud or error, in the financial statements. This process includes understanding the entity and its environment, including the entity’s internal control, thereby providing a basis for designing and implementing responses to the assessed risks of material misstatement. This program explores efficient ways to conduct audits (primarily for private companies), including a discussion of the applicable standards and their requirements.
Identify controls that exist, especially when those controls are not clearly identified. Evaluate if those controls prevent or detect material misstatements in the financial statements. Design effective audit procedures (including testing of controls where appropriate) in response to the auditor’s assessed risk of the potential material misstatements in the financial statements.
CPAs performing audits of privately-owned companies will be able to plan their audit to perform effective risk assessment procedures, evaluate the control environment, and provide a platform to design appropriate additional audit procedures that respond to the assessed risks of material misstatement.
Privately-owned companies present numerous challenges to the auditor when attempting to determine the audit risks that exist, as follows: Are there identifiable controls that exist, and if so, are they documented? Is the lack of segregation of duties a major internal control weakness? Is there evidence of management override of existing controls? Does ownership/management determine estimated amounts in the financial statements without bias? Does ownership/management perform the required procedures to determine if a going concern exists? Do those charged with governance take responsibility for internal control over financial reporting?
Mr. Ristaino is a partner in a local firm and is Director of Accounting and Auditing and quality control. He has over 30 years experience in public accounting. He manages a diversified practice including construction and real estate, healthcare, manufacturing, governmental auditing (including single audit and HUD), transportation, travel, and not-for-profit organizations. He also has extensive experience in compliance auditing for both the public and private sector.
Mr. Ristaino has authored and presents numerous professional education programs around the country and is a former professor of tax law at Villanova and Philadelphia Universities. Gene is a member of the Peer Review Committee for the Pennsylvania Institute of Certified Public Accountants, and is a team captain for the Peer Review Program of the AICPA.
Non-Member Price $209.00
Member Price $159.00