Financial Statement Audits for New Auditors: Risk Assessment
Author: Salvatore Collemi
| CPE Credit: |
2 hours for CPAs |
The Financial Statement Audits for New Auditors series of courses is focused on assisting new staff moving into an audit practice of non-public business entities (PBEs). These courses will help staff on their first audit engagement. This is part two of the three part series.
Publication Date: August 2019
Designed For
For entry-level, newly designated in-charge and managers in public practice.
Topics Covered
- Overview of risk assessment
- Assertions
- Relevant assertions
- Risk of material misstatement
- Materiality
- Consideration of fraud risk
Learning Objectives
- Recognize and explain audit assertions
- Describe Risk of Material Misstatement (RMM)
- Identify how to calculate RMM
- Recognize how to explain inherent risk and control risk combined into RMM impacts the audit procedures to perform
- Identify the types of materiality and how each is used in an audit
- Recognize which balance sheet items is most likely to have the highest risk in terms of the completeness assertion
- Differentiate combinations of inherent risk and control risk represents an accurate determination of the risk of material misstatement
- Identify which quantified items will rarely be encountered in the course of performing testing as a relatively new staff person
- Describe how cutoff assertion for classes of transactions is best defined
- Recognize which algebraic expressions best describes the concept of risk of material misstatement
- Identify which assertions will be least significant when assessing the risks regarding trade accounts receivable
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Auditing (2 hours)
Program Prerequisites
None
Advance Preparation
None
