Sarbanes-Oxley (SOX): Top Down Risk Assessment Part 2

This course focuses on the methodology steps reviewed in Segment One of developing a top-down risk assessment.

Ratings 4.04 / 5.00

Sarbanes-Oxley (SOX): Top Down Risk Assessment Part 2

What You Will Learn!

Explore the key steps of a top down Risk Assessment (RA).
Assessing entity level controls.
Determining significant accounts.
Linking to assertions.
Identifying related controls for significant accounts.
Linking to Committee of Sponsoring Organizations (COSO) principles.
Explore real world examples of executing a top down Risk Assessment.
ABC Construction.
Acme Inc.

Description

Concepts for an accounting top down risk assessment can be well defined, but execution of a true top-down risk accounting risk assessment is still a challenge. The requirement of Auditing Standard 5 (AS5) to consider multiple risk factors complicates the process. Organizations will often struggle with the best method to properly evaluate their accounts to determine those which present the potential for a material misstatement.

This course focuses on the methodology steps reviewed in Segment One of developing a top-down risk assessment. We delve further into understanding how to examine entity-level controls and their importance on determining account significance. We review the steps outlined in Segment One and apply those steps towards two separate scenarios. This allows the participant to think through the process and application and to examine how a scoring methodology may be beneficial within their individual process.