Auditing Bits in Bytes Session 4: Assessing and Responding to Risk
Description
Auditing Bits in Bytes™ – A Practical Break-Down of “Real World” Best Practices Applied in Highly Successful Audits is a series of eight individual sessions that guide professionals through the complete audit process from “A to Z” – starting with Pre-Engagement Planning Activities, and going all the way through Wrap-up and Quality Control.
Attempting to perform an effective and efficient audit can be intimidating and confusing, for new and experienced auditors alike. This series will provide valuable tips and techniques from an experienced auditor that are needed to successfully design and perform financial statement audits in “real-life” circumstances. Extensive illustrative examples will be used to reinforce a practical understanding of the most critical principles and standards that support a high-quality, insightful, and profitable engagement.
This 2-hour session focuses on how to appropriately identify, evaluate, document and respond to risks of material misstatement due to either fraud or error in order to effectively and efficiently design the nature, timing and extent of further audit procedures (tests of controls for operating effectiveness and substantive audit procedures).
Learning Objectives
Upon completion of this course, participants will be able to:
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
Major Topics
Audit Risk Components: Inherent Risk, Control Risk, & Detection Risk
Understanding the underlying intent of each of the components, and key considerations in properly assessing and documenting the basis for conclusions
Identifying & Evaluating Risk – How to synthesize all the information gathered throughout the risk assessment process into a concise summary of risk assessment conclusions
Determining Significant Risks Requiring Special Audit Considerations
What differentiates this type of risk from other types of risks of material misstatement, and what that means in regards to the nature, timing and extent of further audit procedures
Engagement Team Discussion – Common deficiencies in the performance of this required important activity
Linking Assessed Risk of Material Misstatement to the Detailed Audit Plan – How judgment calls directly influence the effectiveness and efficiency of the detailed audit plan
Extensive illustrative examples will be used to reinforce a practical understanding of the most critical principles and standards that support a high-quality, insightful, and profitable engagement
Linking Assessed Risk of Material Misstatement to the Detailed Audit Plan – How judgment calls directly influence the effectiveness and efficiency of the detailed audit plan
Extensive illustrative examples will be used to reinforce a practical understanding of the most critical principles and standards that support a high-quality, insightful, and profitable engagement
Provider
Business Learning Institute
Course Level
Basic
Professional Area of Focus
T Shaped Professional Data / Digital / Technical
CPE Field of Study
Auditing
2.0
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
