Course Description

Properly identifying, assessing, and responding to risk through a detailed audit plan is critical to an effective and efficient financial statement audit. This module will emphasize the key concepts and best practices that drive a thoughtful risk-based approach to forming an opinion on the financial statements post-SAS No. 145.

Major Topics: 

•     Overview of a risk-based audit process post-SAS No. 145

•     How the individual elements of the audit risk formula interrelate

•     Emphasis on overall risk, fraud risk, and control risk

•     Linking the assessed risk of material misstatement to the detailed audit plan

•     Documenting risk assessment conclusions and responses

Learning Objectives

• Identify the importance of risk assessment to a high-quality audit
• Recognize the audit risk formula, including how the elements relate
• Explore the steps and best practices of an effective risk assessment process
• Explore how to link risk to a detailed audit plan

Prerequisites

• Basic knowledge of generally accepted auditing standards.