CPE: 8 hours
Category: Accounting & Auditing
Prerequisites: A working knowledge of audit standards is beneficial, but not critical.
Advanced prep: None
Who should attend: Auditors and industry CPAs who require an in-depth understanding of the assertion-based approach to audit risk assessment.
Risk assessment is the core principle of the profession's audit standards and critical to conducting an effective and efficient audit. With peer review results in and more than few years' worth of experience under the profession's collective belt, it's time to fine-tune implementation of the risk assessment standards. These standards, designed to eliminate the connect-the-dots methodology of checklist auditing and add critical thinking back into the audit process, remain a problem area for many firms. The result? Engagement and peer review deficiencies.
This course has been updated for the recently enacted AICPA Clarity Standards that expanded the risk assessment methodology to many new additional audit areas. We'll break down this complex and misunderstood subject into an easy-to-understand, concise systematic approach.
- Recognize the risk assessment process.
- Determine how the standards have affected your audit practice
- Identify additional procedural changes requiring firm implementation.
- Determine your implementation plan and the procedural and documentation requirements embodied in these standards.
- Recognize the impact of recently enacted changes resulting from the AICPA Clarity Project.
- Assessing the risk of material misstatement.
- Audit risk and the risk of material misstatement.
- Mandatory risk assessment procedures.
- Evaluating internal controls.
- Responding to risk assessment with appropriate audit procedures.
- Complying with revised and expanded documentation requirements.