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Event Description

Recent auditing standards have emphasized the initial information gathered and important conclusions reached during risk assessment procedures to identify and evaluate risk of material misstatement in a financial statement audit. These important procedures provide the basis for determining how much effort will be invested in evaluating the design and implementation of internal controls. In addition, these procedures provide the rationale for effectively and efficiently designing the nature, timing and extent of further audit procedures (which includes tests of controls for operating effectiveness and substantive audit procedures).

Designed For

Anyone who performs or reviews risk assessment procedures on a financial statement audit

Objectives

  • Understand the importance of applying materiality concepts to risk assessment procedures
  • Explain how to determine significant audit areas and appropriately apply the audit risk model
  • Discuss how to document risk assessment procedures, including significant conclusions reached

Major Subjects

  • What to document in gaining an understanding of the audited entity and its environment, and how it relates to identifying areas of higher risk of material misstatement due to fraud or error
  • How materiality and tolerable misstatement are not just rote calculations, but important and key decisions that establish a framework for important audit conclusions
  • Why preliminary analytic review assists the auditor in identifying significant accounts, classes of transactions and disclosures, as well as higher inherent risks of what could go wrong in the clients financial statements due to material fraud or error
  • How to identify significant accounts, classes or transactions and disclosures, and what that means in relation to required or presumed risk assessment procedures
  • Understanding the underlying intent of each of the primary components of audit risk, and key considerations in properly assessing and documenting the basis for those conclusions
  • How to synthesize information gathered through risk assessment procedures to document a clear and concise summary of risks of material misstatement due to either fraud or error
  • What differentiates significant risks requiring special audit consideration from other types of risks of material misstatement, and the impact on the nature, timing and extent of further audit procedures

Prerequisites

None

Instructions

When you purchase a Surgent CPE on-demand course, it must be taken by June 30, 2019, to receive credit.
Within 5 minutes after your purchase, you will receive an email from info@surgent.com that explains how to access your course and materials.
Once you complete a course, please allow up to 30 days to receive you certificate of completion.
If you have further questions, please email info@surgent.com or call 800.778-7436. Their help lines are staffed Monday-Friday from 8:30 am to 5 pm Eastern Time.