Thinking Like an Auditor When Preparing Your Financial Statements

Prerequisites

None

Highlights

• Determining an appropriate sense of quantitative and qualitative materiality
• Identifying the critical components of the financial statements that matter most to financial statement users
• Evaluating where the financial statements are most likely to contain material fraud and error, and ensuring adequate internal control and monitoring to mitigate those risks

Objectives

• Describe important judgments made by the auditor in providing reasonable assurance about whether financial statements are materially misstated due to fraud or error
• Explain how to apply subjectivity, materiality and other critical aspects of professional judgment when preparing financial statements and related disclosures
• Apply illustrative examples to explain how judgment can be appropriately applied in reliable financial reporting

Preparation

None