In this course, we will explore how auditors identify and assess the risks of material misstatements by gaining a comprehensive understanding of privately owned companies and their unique challenges. Key questions we will address include: Are identifiable controls in place? Do owners and managers actively promote compliance with company policies? Have they documented these controls and effectively communicated them to staff? Are these controls observable and testable for operating effectiveness? Additionally, do owners and managers monitor employee performance and evaluate the effectiveness of the controls implemented?