Audit Evidence and Risk - Managing Third-Party Terms in Nonprofit Engagements   New

This course explores the emerging risks associated with gathering audit evidence directly from third-party portals, a common practice in today's digital audit environment. As auditors increasingly rely on electronic data obtained from banks, custodians, payroll processors, and other service providers, they are often asked to accept terms and conditions that may conflict with professional standards. These agreements can include nondisclosure clauses, data use restrictions, and indemnification requirements that hinder compliance with documentation, independence, and reporting rules. The course discusses the implications of such restrictions, evaluates the reliability and appropriateness of electronically sourced audit evidence, and considers service organization controls and confirmation procedures. It also outlines strategies for mitigating risk, including modifying terms of access or redirecting information flow through audited entity management, to preserve audit integrity and meet regulatory expectations.