Overview
In every audit, the auditor is required to identify and assess the risks of material misstatement, whether due to fraud or error, at the financial statement and relevant assertion levels through understanding the entity and its environment, including the entity’s internal control, thereby providing a basis for designing and implementing responses to the assessed risks of material misstatement.
Objectives
To assist auditors in performing risk assessment required for all audits, particularly when auditing privately-owned companies. The program will discuss how to identify controls that exist, especially in the circumstances when those controls are not clearly identified, and how to evaluate if those controls prevent or detect material misstatements in the financial statements.
Major Topics
• Review of applicable auditing standards for risk assessment
• Identification and discussion of high-risk audit areas
• Discussion and analysis of control risk vs. inherent risk
• Practical approach to auditing companies where controls are minimal or not adequately documented
• Detailed discussion and examples of risk assessment procedures and alternative approaches
Designed For
CPAs performing audits of privately-owned companies will be able to plan their audit to perform effective risk assessment procedures, evaluate the control environment, and provide a platform to design appropriate additional audit procedures that respond to the assessed risks of material misstatement.
