This course is designed to refresh your understanding of the critical importance of risk assessment in the audit practice. We'll briefly discuss the impact of AICPA's Clarity Project for audits and the need to update firm processes to incorporate the risk assessment standards. Participants may alternatively need to fine-tune an implementation of the risk assessment standards. These standards are designed to eliminate the connect-the-dots methodology of checklist auditing and add critical thinking back into the audit process. They remain a problem area for many firms, resulting in engagement and peer review deficiencies. This course has been updated to include a more in-depth discussion of SAS No. 145, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement. We will break down this complex and misunderstood subject with an easy-to-understand approach.
Learning Objectives
• Understand the audit risk model
• Determine how the standards affect your audit practice
• Identify additional procedural changes requiring firm implementation
• Determine an implementation plan and the procedural and documentation requirements embodied in these standards
• Become familiar with SAS 145
Major Topics
• Assessing 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
