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Properly identifying, assessing, and responding to risk through a detailed audit plan is critical to an effective and efficient financial statement audit. This module will emphasize the key concepts and best practices that drive a thoughtful risk-based approach to forming an opinion on the financial statements.

Major Topics:

  • Overview of a risk-based audit process
  • How the individual elements of the audit risk formula interrelate
  • Emphasis on overall risk, fraud risk, and control risk
  • Linking the assessed risk of material misstatement to the detailed audit plan
  • Documenting risk assessment conclusions and responses

Learning Objectives

  • Explore and explain the importance of risk assessment to a high-quality audit.
  • Discover and describe the audit risk formula, including how the elements relate.
  • Recognize and discuss the steps and best practices of an effective risk assessment process.
  • Identify and link risk to a detailed audit plan.
Last updated/reviewed: June 6, 2021

Included In Certifications

This course is included in the following Certification Programs:

13 CoursesAudit Training Level 2 - Experienced Staff

  1. Fraud Risk - Complying with Minimum Audit Requirements
  2. Best Practices for Identifying and Evaluating Audit Risk - Linking Risk to the Detailed Audit Plan
  3. Testing Internal Controls - Exploring Strategies for Verifying Operating Effectiveness
  4. Inquiry and Research - Improving Critical Audit Skills
  5. Auditing Investments - Understanding Risks and Procedures for the Most Common Investments
  6. Auditing Accounts Receivable - Focusing Procedures for Testing Existence and Valuation
  7. Auditing Liabilities, Including Long-Term Debt - Addressing the Risks of Completeness, Classification, and Disclosure
  8. Substantive Analytic Procedures - Strengthening Evidence to Satisfy Audit Objectives
  9. Sampling - Avoiding Common Mistakes on Financial Statement and Compliance Audits
  10. Desired Traits of a Star Performer - Visualizing How to Become an Exceptional Staff Auditor
  11. Professional Requirements for Assurance Providers, Including Independence - Understanding Critical Code of Professional Conduct Concepts
  12. Accounting Update - Hot Topics for Preparing Current Period Financial Statements
  13. Auditing & Attest Update - Hot Topics for Current Period Audits and Other Attest Services

Prerequisites

Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.
Designed For: Accountants who must identify, assess and respond to risk through a detailed audit plan on a financial statement audit.

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
  0:45Learning Objectives for Best Practices for Identifying and Evaluating Audit Risk
  19:27Overview
  19:12The Audit Risk Model
  14:59Impact of Understanding the Entity and Its Environment
  7:56Impact of Fraud Risk and Focus on Control Risk
  16:36More on Detention Risk and Common Audit Approaches
  11:02Case Study-Completing Risk Assessment Summary
CONTINUOUS PLAY
  1:29:57Best Practices for Identifying and Evaluating Audit Risk
SUPPORTING MATERIAL
  PDFSlides: Best Practices for Identifying and Evaluating Audit Risk - Linking Risk to the Detailed Audit Plan
  PDFBest Practices for Identifying and Evaluating Audit Risk - Linking Risk to the Detailed Audit Plan Glossary/ Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM