Level 3 focuses on transitioning staff auditors to performing more complex audit procedures, and assuming more responsibilities related to handling financial reporting issues. This course builds on the technical experiences of auditors to introduce them to the tips and techniques necessary to assume responsibility on larger engagements with increased audit risk, including considering audit report modifications. NOTE: Participants must sign up for both consecutive days. Please check the registration calendar to find both complementary dates, which will run in consecutive order.

Major Topics:

  • Day 1:
    • Properly identifying, evaluating, and responding to fraud risk on an audit
    • Safeguarding threats to independence when performing both attest and nonattest services
    • Tailoring standard audit programs for a better audit: Linking risk assessments to tailor standard audit programs for more effective and efficient audits
    • Internal controls: Enhancing understanding of the COSO Integrated Framework, the auditor’s responsibility related to internal controls and service organization control reports, and designing tests of controls to reduce control risk
  • Day 2:
    • Substantive analytical procedures: Benefits of analytical procedures over tests of details, required steps for designing substantive analytical procedures, and common pitfalls in using substantive analytical procedures as audit evidence
    • Auditing common investments: Audit objectives, fair value case studies, accounting for common derivatives, and typical presentation and disclosure issues
    • Auditing revenue recognition: Audit objectives and specific identified risks, accounting for multiple element transactions, and analyzing scenarios for proper treatment
    • Complex financial reporting: Drafting footnotes and the cash flow statement, modifying auditor reports, and avoiding peer review deficiencies

Learning Objectives:

  • Describe how to alter the nature, timing and extent of audit procedures to be commensurate with assessed risk of material misstatement, including fraud risk
  • Explain how to safeguard independence threats when performing both attest and nonattest services
  • Discuss how a proper evaluation of the design and operating effectiveness of internal control could impact assessed risk of material misstatement
  • Explain significant risks such as revenue recognition and fair value of investments
  • Describe how to strengthen substantive analytic procedures
  • Draft complex footnotes and properly modify auditor reports

Designed For: Experienced staff with 1-2 busy seasons of audit experience
Level of Knowledge: Intermediate
Prerequisite: Familiarity with SASs and FASBs
Advanced Preparation: None
Credits: 8
Field of Study: Auditing(8)
CFP Credit: No

Live Seminar Course Schedule