Relevant Assertions In Audit Are Not Relevant Assertions: Untangling the Meanings

<p>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 &ldquo;relevant assertions&rdquo; with two very different meanings.</p>

<p>This class takes a look into what the standards mean by &ldquo;relevant&rdquo; in the context of the account&rsquo;s risk identification. We will then explain the differences, and what the standards require for testing with these assessed levels of risk.</p>

<p>Course Key Concept: <b>Risk Assessment, Relevant Assertions, Risk of Material Misstatement, Audit Planning, Significant Accounts, Key Controls, Audit, RMM </b></p>