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One of the most challenging parts of an audit is the risk assessment. Within the risk assessment, the auditor needs to decide which account groups and classes of transactions have a risk of material misstatement, and which are significant accounts. Used in both degrees of risk is the term “relevant assertions” with two very different meanings.

This class takes a look into what the standards mean by “relevant” in the context of the account’s risk identification. We will then explain the differences, and what the standards require for testing with these assessed levels of risk.

Course Key Concept: Risk Assessment, Relevant Assertions, Risk of Material Misstatement, Audit Planning, Significant Accounts, Key Controls, Audit, RMM

Learning Objectives

  • Explore risk assessment.
  • Recognize Relevant Assertions as a defined term.
  • Discover the requirements for testing relevant assertions and testing assertions relevant to a significant account.
Last updated/reviewed: March 30, 2020

2 Reviews (5 ratings)Reviews

5
Member's Profile
Relevant Assertions In Audit Are Not Relevant Assertions: Untangling the Meanings excellent course.
4
Anonymous Author
Great course for novice auditors and a good refresher for experienced auditors.

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
  2:02Introduction to Relevant Assertions Are Not Relevant Assertions: Untangling the Meanings
  7:03Risk Assessment
  11:41Relevant Assertions
  3:33RMM Accounts
  10:49Key Controls
  3:07Example of Understanding a Control
  2:00Significant Accounts
  1:19Example of A Significant Account Procedure and Summary
CONTINUOUS PLAY
  41:34Relevant Assertions Are Not Relevant Assertions: Untangling the Meanings
SUPPORTING MATERIAL
  PDFSlides: Relevant Assertions Are Not Relevant Assertions: Untangling the Meanings
  PDFRelevant Assertions Are Not Relevant Assertions: Untangling the Meanings Glossary/Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM