Basic Audit Staff Training: Audit Risk Assessments

Author: Robert K Minniti

This online course introduces new and developing audit professionals to the essential principles, standards, and techniques involved in performing high‑quality audit risk assessments. Participants will gain a clear understanding of the requirements under AU‑C 315, PCAOB risk assessment standards, and related guidance governing how auditors identify, assess, and respond to the risks of material misstatement.

Through practical examples and real‑world scenarios, the course demonstrates how auditors integrate knowledge of the entity, its environment, industry conditions, and internal controls into a comprehensive risk assessment framework. Participants will learn how to evaluate inherent and control risks, identify fraud risk indicators, perform preliminary analytical procedures, and design audit responses that are appropriately tailored to risk.

By the end of this course, attendees will be better equipped to exercise professional skepticism, enhance audit documentation, and develop audit strategies that improve both efficiency and audit quality.

Publication Date: March 2026

Designed For
This course is designed for early‑career professionals and others seeking foundational training in audit risk assessments.

Topics Covered

• Audit risk model and key concepts (inherent risk, control risk, detection risk)
• Requirements of AU‑C 315 and PCAOB risk assessment standards
• Understanding the entity and its environment
• Evaluating internal controls relevant to the audit
• Preliminary analytical procedures and risk identification
• Identifying and assessing risks of material misstatement (RMM)
• Fraud risk assessment and common fraud indicators
• Linking assessed risks to audit procedures
• Documentation best practices and common pitfalls

Learning Objectives

• Explain professional standards governing audit risk assessment, including AU‑C 315 and PCAOB requirements
• Identify and assess risks of material misstatement at the financial‑statement and assertion levels
• Apply understanding of the entity, environment, and internal controls into the audit risk assessment process
• Recognize fraud risk factors and evaluate related controls
• Design audit procedures responsive to identified risks, including substantive and control‑based strategies
• Analyze risk assessments and link them appropriately to the audit plan in accordance with auditing standards

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Auditing (2 hours)

Program Prerequisites
None

Advance Preparation
None