A financial statement auditor’s overall responsibility is to obtain sufficient appropriate audit evidence to provide reasonable assurance as to whether the financial statements are materially misstated due to fraud or error. The biggest contributing factor that leads to an effective and efficient financial statement audit is the proper identification, evaluation, and response to assessed risk of material misstatement. Engagement teams must ensure compliance with generally accepted audit standards, but also leverage knowledge of the entity and its operating environment to design a high-quality and profitable audit. This course will emphasize the key concepts that drive the foundation of an effective risk-based audit approach.

Major Topics:

  • Understanding the various types of risk on an audit engagement – including inherent, control, fraud, and detection risk – and how they interrelate
  • Describing the symptoms of fraud, and how to identify risk of material misstatement due to fraud
  • Explaining engagement planning meeting best practices
  • Evaluating and documenting audit risk, both at the overall and relevant assertion level
  • Discovering effective and efficient workpaper documentation techniques
  • Linking risk assessment to the detailed audit plan

Learning Objectives:

  • Discuss practical application of audit risk concepts on a financial statement audit to ensure compliance with generally accepted auditing standards, while also ensuring more profitable engagements
  • Describe how to properly identify, assess, and respond to fraud and error risk
  • Explain how to determine the most appropriate nature, timing, and extent of audit procedures for maximum effectiveness and efficiency

Designed For: New staff and above in public accounting who wish to learn how to perform an audit in compliance with the SASs
Level of Knowledge: Basic
Prerequisite: Experience in the audit function
Advanced Preparation: None
Credits: 8