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: August 15, 2023
6 Reviews (18 ratings)

Reviews

5
Anonymous Author
Great course. Very informative on the topic at hand. Professor keeps you engaged throughout and the review questions are very straight forward relating to the topic.

4
Anonymous Author
This course provides a good understanding of what a significant account is and how to determine what to audit based on risk, materiality, and controls.

5
Member's Profile
Clear explanations of concepts. Full understanding of the Risk of Material misstatement and significant accounts.

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.

5
Anonymous Author
This course offers an effective broad overview of the assertions.

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 .
Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Relevant Assertions Are Not Relevant Assertions: Untangling the Meanings2:02
  Risk Assessment7:03
  Relevant Assertions11:41
  RMM Accounts3:33
  Key Controls10:49
  Example of Understanding a Control3:07
  Significant Accounts2:00
  Example of A Significant Account Procedure and Summary1:19
CONTINUOUS PLAY
  Relevant Assertions Are Not Relevant Assertions: Untangling the Meanings41:34
SUPPORTING MATERIAL
  Slides: Relevant Assertions Are Not Relevant Assertions: Untangling the MeaningsPDF
  Relevant Assertions Are Not Relevant Assertions: Untangling the Meanings Glossary/IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam