SOC Risk Assessment. Information Systems and Controls ISC CPA Exam скачать в хорошем качестве

SOC Risk Assessment. Information Systems and Controls ISC CPA Exam

In this video, we discuss risk assessment in SOC engagements as covered in Information Systems and Controls ISC CPA exam. 0:00 Introduction Risk Assessment Importance (0:05-0:21): In SOC engagements, risk assessment is essential for pinpointing and assessing significant inaccuracies. This assessment is the bedrock for planning and executing audit procedures that target identified risks. Areas to Assess for Risk (2:33-4:23): In an AAK engagement, there are three key areas where risks need to be identified: understanding the system description, assessing control design, and evaluating the operational effectiveness of controls. Identifying Risks (4:44-6:33): When identifying risks, factors to consider include actions from within or outside the organization, potential dangers and weaknesses within the system, the use of subservice organizations, employee access, and the lack of complimentary user entity controls. Inherent Risks (6:44-10:08): Inherent risks are those that exist before any controls are put in place. Factors that can increase inherent risks include changes in the operating environment, high employee turnover, new or revamped information systems, rapid growth, new technology, new business models, corporate restructuring, and new accounting standards. Internal Audit Function (10:10-11:20): Understanding the responsibilities, scope, and objectives of the internal audit function is important for the service auditor, as it provides deeper insights into the company's controls. Auditor's Tools (11:20-13:57): Service auditors use various tools to understand the service organization's system, including conducting inquiries, observing and inspecting documents, reviewing agreements, reperforming controls, and reviewing external reports. Auditing Methods (14:17-15:56): Auditing methods include walkthroughs, where auditors trace a transaction from beginning to end, and concurrent procedures, where risk assessment procedures are performed simultaneously with gathering information about the system. Identifying Fraud and Compliance Risks (15:56-17:03): A crucial part of risk assessment is identifying the potential for fraud and non-compliance with laws and regulations, including evaluating the risk of management override of controls. SOC Risk Assessment A Service Organization Control (SOC) risk assessment is an essential component of any audit process for service organizations. This assessment ensures that the organization has adequate controls to manage risks related to security, availability, processing integrity, confidentiality, and privacy of the systems used to process users’ data. Here’s a detailed look at SOC risk assessment: Start your free trial: https://farhatlectures.com/