Planning and Performing Risk-Based Yellow Book Audits (SMAA01/22)
By far, the biggest contributing factor that leads to a profitable, yet high quality, financial statement audit is the proper identification, evaluation, and response to assessed risk of material misstatement. When designing your detailed audit plan, how and where you decide to spend your time is largely a matter of professional judgment. The proven tips and techniques for critically rethinking how you plan and design your audit taught in this course will help auditors enhance audit quality and manage profitability on all engagements, including those performed in accordance with Yellow Book.
Anyone with responsibilities for financial statement audits
- Describe differences in auditor’s responsibilities for financial statement audits between generally accepted auditing standards and generally accepted government auditing standards
- Discuss how proper planning and risk assessment is a critical tool for promoting audit effectiveness and efficiency on Yellow Book financial statement audit engagements
- Apply best practices for performing tests of details, substantive analytic review, and evaluation of internal controls
- Explain the impact that strong client and engagement management can have on improving profitability on all engagements, including Yellow Book financial statement audits
- Properly assessing inherent, control, and fraud risk on an engagement, and linking the results to an appropriately tailored detailed audit plan based on risk assessment and client service goals, regardless of entity type (for-profit, nonprofit, governmental)
- Leveraging strong substantive analytic procedures as audit evidence to cut back on tests of details
- The most common efficiency opportunities for tailoring your audit approach based on risk
- Learn how to get the Yellow Book engagement out the door – on time and on budget!