This course will cover both materiality and risk evaluation which requires judgement from the auditor because both concepts directly impact the auditor's planned audit evidence.

At the end of this course, you will be able to:

  • Know why materiality is important for an audit of financial statements.
  • Know the audit risk model and its components.
  • Know the impact of engagement risk on acceptable audit risk.
  • Know the relationship of risks to audit evidence.

Learning Objectives

  • Identify why materiality is important for an audit of financial statements.
  • Explore and make a preliminary judgment about what amounts to consider material.
  • Identify the audit risk model and its components.
  • Recognize the impact of engagement risk on acceptable audit risk.
  • Recognize the relationship of risks to audit evidence.
Last updated/reviewed: June 11, 2021

7 Reviews (24 ratings)Reviews

5
Anonymous Author
Great course as a refresher on audit materiality and risk assessment - is useful for anyone inside or outside of public accounting. The slide handouts are lengthy and very thorough - a great resource to have. Highly recommend!
4
Anonymous Author
A lot of good information in this course. I wish that the presenter was more engaging, but it seemed like she was new to recorded courses. The information is still very good.
5
Member's Profile
Challenging course on audit, will really be good review for those who have been out of audit for a few years. Good course.
5
Anonymous Author
This is a very interesting course on audit materiality and risk assessment. The material is very easy to understand
4
Anonymous Author
This course provides easily understandable information regarding audit risk and how to assess materiality.
4
Member's Profile
Excellent review of materiality and risk assessment and discussion of the underlying concepts.
5
Anonymous Author
Great deck - very thorough and included all the material covered in this course.

Prerequisites

Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  2:25Introduction to Audit Materiality and Risk Assessment
LESSON 1
  9:47Set Materiality and Assess Acceptable Audit Risk
  6:07Materiality Defined
  8:06Evaluating Materiality and Factors Effecting Materiality
LESSON 2
  12:12Audit Risk
  10:52Financial Difficulties and Inherent Risk
LESSON 3
  9:50Makeup of Population
  6:52Measurement Limitations
  4:14Risk and Materiality to Evidence
  2:00Summary
CONTINUOUS PLAY
  1:12:25Audit Materiality and Risk Assessment
SUPPORTING MATERIAL
  PDFSlides: Audit Materiality and Risk Assessment
  PDFAudit Materiality and Risk Assessment Glossary/ Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM