Auditing Bits in Bytes: Eight-Part Series

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Learning Objectives

• ABB Session 1: Pre-Engagement Planning Activities
  • Describe the important activities that are performed before the audit engagement even begins, such as gathering information about engagement risk
  • Explain the important considerations in making engagement acceptance and continuance decisions, including evaluating independence
  • Define what should be communicated when establishing and understanding with the client, including when nonattest services are provided for an attest client
  • Recognize the professional judgments made early in the audit that establish the foundation for a high quality and profitable engagement, including initial and group financial statement audit engagements
• ABB Session 2: Preliminary Planning Activities 
  • Recognize how preliminary planning and risk assessment activities are not just “check off the box” tasks, but meaningful judgments that directly influence audit effectiveness
  • Describe the initial information that should be gathered about the entity and its’ environment to have a proper basis for important decisions made in early planning and risk assessment
  • Recognize the importance of key materiality and performance materiality judgments, and resulting impact on risk assessment and the detailed audit plan
  • Describe how proper preliminary analytic review sets the stage for how much audit effort will be spent on the engagement
  • Identify ways to avoid common deficiencies in identifying and responding to fraud risk on the audit
  • Describe the factors that should be considered when designating significant audit areas
• ABB Session 3: Internal Control Considerations
  • Describe the requirement to evaluate the design and implementation of internal control as part of the risk assessment process
  • Identify the considerations when deciding whether it is necessary or desirable to test the operating effectiveness of internal controls to reduce assessed risk of material misstatement
  • Recognize special considerations, such as use of service organization control reports or varying audit objectives
• ABB Session 4: Assessing and Responding to Risk
  • Describe how to properly identify, evaluate, document and respond to risks of material misstatement due to either fraud or error
  • Recognize best practices for effective and efficient engagement team discussions and other risk assessment activities
  • Identify how to link assessed risk of material misstatement to the design of the nature, timing and extent of further audit procedures
• ABB Session 5: Substantive Testing
  • Identify steps to design and perform substantive audit procedures comprising the detailed audit plan
  • Identify common deficiencies in performing and documenting further audit procedures, including both tests of details and substantive analytic procedures
  • Recognize how to comply with specific requirements for extended tests of details performed to address higher risk of material misstatement, including external confirmation and sampling
• ABB Session 6: Engagement Wrap-Up
  • Recognize how lack of audit documentation may unravel all good intentions as it relates to audit quality and profitability
  • Identify circumstances where modification of the standard audit report would be appropriate
  • Recall all activities that occur during the engagement wrap-up phase of the engagement, which includes general audit procedures, audit report drafting, and audit report release
• ABB Session 7: Identifying, Evaluating and Communicating Internal Control Deficiencies
  • Describe how to properly satisfy the requirement to evaluate and communicate internal control matters noted during the course the financial statement audit
  • Recognize considerations in properly categorizing internal control deficiencies as an inconsequential matter, significant deficiency, or material weakness
  • Identify significant audit matters to communicate with those charged with governance
  • Recognize ways for reporting entities to assume greater responsibility for internal control over financial reporting
• ABB Session 8: Engagement Wrap-up and Quality Control Considerations
  • Identify how to leverage the audit documentation and review process to ensure a quality and profitable engagement
  • Describe key activities that ensure appropriate quality control procedures were performed on the financial statement audit
  • Recognize common peer review deficiencies that quality control policies and procedures should seek to avoid

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Major Topics

Series Modules:

• ABB Session 1: Pre-Engagement Planning Activities
• ABB Session 2: Preliminary Planning Activities
• ABB Session 3: Internal Control Considerations
• ABB Session 4: Assessing and Responding to Risk
• ABB Session 5: Substantive Testing
• ABB Session 6: Engagement Wrap-Up
• ABB Session 7: Identifying, Evaluating and Communicating Internal Control Deficiencies
• ABB Session 8: Engagement Wrap-up and Quality Control Considerations

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Advanced Preparations

None

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Who Should Attend

Anyone who is new to auditing or desires a refresher in how to perform effective and efficient financial statement audits for non-issuers in accordance with professional and regulatory standards

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Fields of Study

Auditing

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Prerequisites

None

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Provider

Business Learning Institute

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CPE Credits

16.0

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Level

Basic