Internal Factors

Free CPA AUD (Auditing & Attestation) lesson in Assessing Risk and Developing a Planned Response. 13 min read, ~1,970 words.

AU-C 315 requires you to understand the entity's operations, ownership and governance, financing, business model, accounting policies, KPIs, objectives and strategies, and internal control. Sarbanes-Oxley (SOX) sets corporate governance requirements for issuers: §301 independent audit committee, §302 CEO/CFO certifications, §404(a) management ICFR report, §404(b) auditor ICFR opinion. A factor becomes...

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