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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


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

Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
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
  0:45Learning Objectives for Best Practices for Identifying and Evaluating Audit Risk
  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
  1:29:57Best Practices for Identifying and Evaluating Audit Risk
  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