2 CPE 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.
Information within this course comes from readily available public domain documents and is utilized by the trainer as a supplement for relaying the course content.
Note: The concepts outlined in this course are up to date and relevant in regards to the Sarbanes-Oxley legislation. Although there have not been any changes in the legislative concepts of the law since it’s release in 2002, some aspects of executing the work have evolved. This speaker is preparing a series of courses titled “Sarbanes-Oxley 20 years later”. Those courses can be found individually on the platform and would be beneficial for anyone involved with compliance.
NOTE: The Instructor has created 5 new segments on Sarbanes-Oxley Update - 20 Years Later:
Sarbanes-Oxley Update - 20 Years Later: Accounting Risk Assessment Considerations
Sarbanes-Oxley Update - 20 Years Later: Sourcing Emerging Risks Part 1
Sarbanes-Oxley Update - 20 Years Later: Evaluating Testing Processes
Sarbanes-Oxley Update - 20 Years Later: Sourcing Emerging Risks Part 2
Sarbanes-Oxley Update - 20 Years Later: Examining Fraud Risks
Learning Objectives
- 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.
Last updated/reviewed: March 11, 2024
Included In Certifications
This course is included in the following Certification Programs:
16 CoursesSarbanes-Oxley (SOX) Certification
- Sarbanes Oxley Overview
- SOX: Authoritative Bodies
- Sarbanes-Oxley (SOX) Standards - Evolution
- Information Technology General Controls Primer
- COSO 2013 Overview
- Sarbanes-Oxley (SOX) Section 404
- Sarbanes-Oxley Section 302: ICFR
- Sarbanes-Oxley (SOX) And Fraud Sections
- Sarbanes-Oxley (SOX) - Top Down Risk Assessment Part 1
- Sarbanes-Oxley (SOX) - Top Down Risk Assessment Part 2
- Sarbanes-Oxley (SOX) - Entity Level Controls
- Sarbanes-Oxley (SOX) Identifying and Documenting Controls
- Sarbanes-Oxley (SOX) Testing
- Sarbanes-Oxley (SOX) - Assessing Data Impact
- XBRL - Connection to SOX 302/404 and Critical Roles
- Tools For Sarbanes-Oxley Compliance
81 Reviews (265 ratings)
Reviews
Anonymous
(Staff Operations Auditor)
I feel the course was helpful in understanding the concepts. The examples provided were very useful; however, the parts of course felt very repetitive, as a chunk of the material was a repeat of part 1. I feel it would have been better if less time had been spent going over previously covered material and more focus had been placed on the two examples provided.
Anonymous
(Internal Auditor)
Excellent follow up course for part 1 on Risk Assessment, a very important topic and practice in auditing, since it literally determines the nature, timing, and extent of audit procedures to perform. The materials laid out nicely how to navigate through the assessment process and best practices.
Cory Goodman
(Internal Auditor - Finance at Republic Finance)
Material was presented clearly. Slides meaningfully aided in understanding concepts. Instructor was knowledgeable on the subject. The only issues I had were that some of the slides were misstated, which caused confusion, and the examples should have been presented in more depth.
Anonymous
(SVP Accounting and Internal Control)
The course could be enhanced by adding additional detail of all ELCs and procedures like was done for mgt override, risk assessment, and third party service providers. The course was well done and provided a nice flow to elaborate on the concepts from Part I.
Cecilia Guerrero
(Compliance, Sr. Analyst at Epicor)
Like in other webinars Lynn has, I loved how she goes deep in every slide using examples and/or making great observations for when you are in the process of RA. With that, you can see she is very knowledged in the subject she is teaching about.
Anonymous
(SOX process manager)
The course is very helpful in working through two examples of top down risk assessments which makes it easier to understand the concepts of weighting various elements as per AS5 and then risk scoring against significant accounts.
Anonymous
(Internal Control Expert)
It was very well structured, well-paced and easy to follow training course. Structuring the course in segments as well as offering a continuous play option is perfect for any learning style. The examples given were good.
Maurine Dyer
(Sole Proprietor at MDyer Information Management)
I have done a number of Lynn Fountain's courses and find her to be a very capable presenter and communicator. She presents complex material very easily and I appreciate her sharing her vast experience in this course.
Anonymous
(-)
Anither excellent course from Lynn Fountain - informative and easily digestable! Content was appropriate for internal or external audit professionals and provided with a very practical and hands-on approach.
Brenda Dugan
(Financial Controls Compliance Manager at United Community Bank)
Part to of the Top Down Risk Assessment course reinforced part one. I plan on revisiting this course annually as it was most informative and applicable to my job responsibilities. Thank you Lynn!
Multimer Cayabyab
(Sr. Analyst at LCL)
Informative discussion which focus on the executing a top down risk assessment that includes the key steps, linking assertions, linking COSO principles and the procedures that maybe involved.
Anonymous
(NFR Specialist III)
This course is a very good material for beginners, but also experienced professionals. It is clearly and accessibly structured with key points brought to attention of the students.
Anonymous
(SOX Manager)
Great instruction, good examples. Would have benefited from downloadable templates and less emphasis on the review since this is an immediate follow-up from the previous section.
Anonymous
(Director, Financial Shared Services)
This course is a straight-forward and clear summary of the SOX top down risk assessment and clearly outlines considerations key to the exercise. It's clear and easy to follow.
Jon McGinnis
(Internal Audit Director at One Call)
I found the examples especially helpful because it tied it all together. Reviewing some of the items from section one was also helpful for recollection and context.
Anonymous
(Accounts Associate)
Course content was clearly presented. Reference materials was very understanding the content. Instructor was knowledgeable about the subject matter.
Anonymous
(Analyst)
I liked the two examples of businesses that illustrate the importance of the situation for applying COSO principles and top down risk assessment.
Mariem Issler
(Director Internal Control, Processes and.. at Thales)
This course provides clear examples of risk assessment process within an organization as well as the methodology to follow which is very helpful.
Anonymous
(N/A)
I enjoyed the examples given in this course. These examples helped to bring all of the concepts that I am learning in the certification together!
Anonymous
(Accountant)
I am in the midst of performing the Risk Assessment for a newly formed entity. The two sessions on risk assessments provided a good roadmap.
Joy Franklin
(Auditor at Assurant)
The course was helpful in understanding the concepts. The examples provided were relevant and helped to understand the concepts more fully.
Anonymous
()
This course provides a good understanding of what a Top Down risk assessment is and why it is performed and why it is important and useful.
Anonymous
()
The course is filled with plenty of useful information on internal controls and top down risk assessment of internal controls as per SOX.
Anonymous
(None)
Wish less time had been spent going over previously covered material and the two examples had been further developed and emphasized.
Anonymous
(Treasury Manager)
Risk Assessment is an integral part of implementing SOX. This course, along with RA1, provide a great guidance towards this goal.
Anonymous
(Audit Manager)
This course adequately outlined the steps used to create a top down risk assessment and called out some of the key milestones.
Anonymous
(SOX Reporting Manager)
Provided clear guidance on the mechanics of a top-down 10-K based risk assessment that should be used for SOX compliance.
Anonymous
(Senior Auditor)
This was a good overview of SOX top down risk assessment. Course content were clear, well explained, and to the point.
Anonymous
(IT Advisory Snr. Associate)
This is a refresher course on SOX. Nothing surprised me but I believe beginners in the field will learn from this.
Anonymous
(Senior Internal Auditor)
Sarbanes-Oxley (SOX) - Top Down Risk Assessment Part 2 was in detailed, very interesting and informative learning.
Anonymous
(Consultant)
This course is a good review of how to determine and link significant accounts to COSO and build audit plan.
TOMOAKI TOGO
( at Canadian Solar Japan)
without reading contents, I was able to score high enough to pass the threshold. relatively easy for me.
Anonymous
(Specialist SOX Compliance)
This is a good training and gives a deeper understanding on the Top Down Risk assessment. Good example.
Aline Cristina Correa
( at Disney)
I liked the examples, is perfect to understand how is the practice of RA routine. Very well explained.
Anonymous
(Audit Director)
I really appreciated the examples. The walk thru of the examples was helpful as to how to set ratings.
Anonymous
(Senior Internal Auditor)
Great material! concise and clear, very helpful. Found the materials very clear, I like it very much.
Anonymous
(Internal Auditor)
Great overview to understand the concepts of Top down approach, entity level controls and assertions.
Anonymous
(Reinsurance Accounting Manager)
Great course to present an overview of the top-down risk assessment to be performed by companies.
Anonymous
(Manager SOX & Accounting)
The examples provided really help in understanding the concepts and learning how to apply them.
Anonymous
(CPA)
This course was excellent and provided important information that I will utilize in the future.
Anonymous
(Internal Auditor)
It is a fully online course and you can access it from anywhere and continue with your studies.
Anonymous
()
This course provided a good high level overview of how to conduct a risk assessment for SOX.
amanda carney
(- at -)
I would have liked to have more examples and some of the stuff was same as covered in part 1.
Sarah Nikas
(Finance Controls and Compliance Lead at Cargill)
Seems some of this info was covered in the prior section - could probably combine into one.
William Seubert
(Internal Audit Manager at Angi, Inc.)
Overall good course demonstrating simple top-down risk assessment principles and examples.
Gabriel Sotero
(Associate at PwC)
Good course but I could not connect properly to part 1 as it repeats some of its concepts.
Jennifer Pawliw
(Staff Auditor 1 at Berkshire Bank)
I feel as though the course was a repeat of part 1, charts and information was the same.
Carlos Rafael Paes Felix
(Manager at EY)
Amazing how settles the theory provided on the first part bringing a more practical view.
Anonymous
(-)
More examples on explaining how the top down risk assessment is implemented were needed
Anonymous
()
It was helpful to go over examples, however, material was similar to previous webinars
Anonymous
(Internal controls manager)
I liked the practical examples demonstrated how to execute top down risk assessment.
Anonymous
(Finance Director)
Very good course to understand how to perform a top down risk assessment evaluation
Shreeya Srivastava
(IS/IT Internal Auditor at Nokia)
Very well-designed course and provide learner a brief learning about these topics.
Anonymous
(Contractor)
Trainer provides very good examples on the risk assessment. Very good training.
Jesus Gonzalez Moreno
( at Jesus Gonzalez Moreno)
good trainign to get into deeper understanding of how risk assesment is performed
Anonymous
(Consultant - Process Specialist)
The examples were very good, and the whole presentation was easy to understand.
ERIC ABAIDOO
( at Tullow Oil)
I enjoyed the case studies which made it more relatable to everyday experience.
Anonymous
(Senior IT Auditor)
Course was very informative. I gained a deeper understanding of Risk Assessment
Anonymous
(N/A)
Solid course. I continue to find the content both comprehensive and engaging.
Anonymous
(SVP & CFO)
Excellent detailed evaluation of top down risk assessment for Sarbanes Oxley.
Tunde Vágó
(Internal Control Manager at Nokia)
Excellent examples and guidance for performing a top-down risk assessment.
Michael Rogers
(Internal Auditor at Assurant)
Great way to provide additional background of the risk assessment process
Anonymous
(Manager)
organized and detailed information.
organized and detailed information.
Donald Dye
(Partner at Skylake)
this was alot of work but the slides and seminars made it much easier
Shupto Mahbub
(CFO at Shupto Mahbub)
The examples are good and easy to understand including the score sheet.
Mirwais Nazar Mohammad
(Senior Manager Finance at Ivanhoe Electric Corp.)
The information is thoroughly explained in great details with examples.
Tanay Srivastava
(Sr IT/IS Auditior at Nokia)
Very good course, Its good to have a one presentation rather than many
Anonymous
(Executive Director, Corporate Controller)
The examples are helpful in showing how to apply the COSO framework.
Paulo Sitoe
(Internal Auditor at Nokia)
Nice recap of Top Down risk assessment, entity level controls.
Waqar Ali Shah
( at LRH)
Taught with the help of examples that makes easy to understand
Anonymous
(Controls Specialist)
Another great session from Lynn on top down risk assessment.
Anonymous
()
Good course, enjoyed it. I have nothing else to comment on.
Anonymous
(Project Manager)
I am much smarter for my time in the class - good job Lynn
Randy Maddox
(Internal Control Senior at Jack Cooper Transport)
It builds on Part 1 which I believe should be taken first.
Sudhanshu Mewara
(Manager at KNAV PA)
I have completed the course and have no further comments.
Anonymous
(Internal Auditor)
Good course and level of detail covering all key areas.
Anonymous
(Business Compliance Manager)
Strongly Agree on the Course Material, Learnt objectives
Daiane Cavalcante
(Jr Manager Accountant at Hookipa Pharma Inc)
Great course, easy to follow and very much practical.
Anonymous
(Internal Auditor)
This topic is very relatable and easier to understand.
Anonymous
(SOX Senior Auditor)
Very informative. Builds nicely off part1.
Mei Ren
(Regional Director at AECOM)
Good
Prerequisites
Course Complexity: Advanced
No advanced preparation or prerequisites are required for this course, but completion of the other courses in this series will be helpful.
Education Provider Information
Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA
95113
Contact:
For more information regarding this course, including complaint and
cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to
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Course Questions and Answers(2 Questions)
Lynn FountainCPA, CGMA, CRMA, MBA, cPIA, Consultant, Author, Trainer
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I was revisiting this course and noticed that in ABC Construction example the Weighting score rate appears to be backwards: 1= high risk and 3= Low risk. The other example looks ok.
Thank you I will check this