Finding the balance between the assessed risk and work performed in an audit is an art that many times is done in an overkill manner. It does not have to be this way. This introductory course helps an auditor, whether first year or an experienced senior, to better understand the risk assessment process, and how that ties to the requirements for appropriately performing procedures linked to the assessed level of risk. We explore the different levels of assessed risk, and how to recognize if you have appropriate substantive audit procedures.

This course touches upon the risk assessment, and how the identification of immaterial, significant accounts and RMM accounts and classes of transactions determines work performed. This course discusses the linkage between the risk areas, their related assertions, and the substantive procedures performed.


Course Key Concept: Audit, Risk Assessment, RMM, Material Misstatement, Significant Account, Materiality, Substantive Procedures, Immaterial, CPA, Audit Efficiency. Target Audience: Beginner (Intern or First Year) to 3 Year experienced Senior Auditor.

Learning Objectives
  • Explore risk assessment.
  • Identify immaterial, material and RMM accounts.
  • Recognize the requirements for testing material accounts.
  • Explore the linkage between extent of procedures and risk assessment.
  • Discover the requirements for testing RMM accounts.
Last updated/reviewed: March 28, 2024
11 Reviews (44 ratings)


Anonymous Author
Good refresher. Basic knowledge that surely benefits professionals with no audit background.

Anonymous Author
Perfect training duration to deliver the material in a clear and concise manner. The slides and other supporting materials will be very useful to have for future reference. Enjoyed this training course!

Anonymous Author
Great course. Very easy to follow throughout and the professor in very knowledgeable on the topic at hand. Review questions were very straightforward which made for an overall great refresher course.

Anonymous Author
This is another great course to get an understanding of the risk assessment auditors perform to gain an understanding of the substantive procedures to be performed during an audit.

Anonymous Author
This course provides an understanding of identifying risk in a risk assessment and how to determine substantive testing of risk.

Anonymous Author
I think some preparation courses should be taken to better understand and benefit from this training course

Member's Profile
Recommended for anyone who needs a refresher on auditing or anyone who is about to go through an audit!

Anonymous Author
Outstanding instructor who provided great advice on substantive audit procedures.

Anonymous Author
Nice overview and some helpful tips to consider with assessing your risk factors.

Anonymous Author
good overview and details on review of RMM and material accounts and controls

Member's Profile
Good course - familiarized me with some areas not reviewed often.

Course Complexity: Intermediate

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 Questions and Answers1 Question
Member's Profile

Hi Tyler,

thank you for an excellent course.

RMM = IR x CR. If the risk scale is Medium, Low and High, is determining the RMM pure mathematics after you have rated the IR and CR.

Let's assume the CR is high, and IR low, is there a RMM? And furthermore, when does RMM become a signficant risk: is it only when both IR and CR are high?

Should CR always high already at this stage, even though there were e.g. a good entity level control environment, or can it be lower even though key controls will not be tested later in the audit process.



Instructor for this course
Course Syllabus
  Introduction to Substantive Audit Procedures for Different Levels of Risk1:54
  Risk Assessment5:06
  Immaterial Accounts6:12
  Material Accounts9:20
  Attribute Sample Size Determination8:45
  RMM Accounts0:45
  Relevant Assertions7:52
  Substantive Audit Procedures for Different Levels of Risk41:45
  Slides: Substantive Audit Procedures for Different Levels of RiskPDF
  Substantive Audit Procedures for Different Levels of Risk Glossary/ IndexPDF