Course ID: RAS4

Strengthening Your Understanding of the AICPA’s Risk Assessment Standards

An auditor’s overall objectives when conducting risk-based audits of financial statements of privately-held companies are to:

(a) Obtain reasonable assurance about whether the financial statements, as a whole, are free from material misstatement, whether due to error or fraud, thereby enabling the auditor to express an opinion on whether the financial statements are prepared, in all material respects, in accordance with an applicable financial reporting framework; and
(b) Report on the financial statements, or otherwise, as required by the SASs, in accordance with the auditor’s findings, outlined in AU-C 315, Understanding the Entity and Its Environment and Assessing Risks of Material Misstatements, throughout the conduct of the audit.

In this session, we will address the key requirements and how effectively comply with them as well as focus on the areas of concerns that have been noted in recent AICPA Peer Review results and internal inspections.

Learning Objectives

After completing this course, you will be able to:

Strengthen your knowledge the key requirements of the suite of Risk Assessment Standards of the AICPA
Understand and avoid recent peer review findings relating to the risk assessment requirements
Understand and define audit risk and how to properly respond and document the results of your testing procedures in the workpaper files

Major Topics

Peer Review Challenges
Audit Planning and Supervision
Audit Risk and Risk Assessment Procedures
Obtaining and Documenting the Understanding of the Entity and Its Environment Including Its Internal Control
Materiality Considerations
Linking Audit Procedures to Mitigate the Risks Identified and
Reach Audit Conclusions
Required Auditor Communications
Performing effective walkthrough procedures

Who Should Attend

This course is designed for CPAs and practitioners who perform audits of privately-held entities.

Fields of Study

Auditing

Prerequisites

Basic experience in performing audits under the AICPA Professional Standards.

CPE Credits

Level

Intermediate

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