Financial Statement Audits for New Auditors: Risk Assessment (Currently Unavailable)

Author: Salvatore Collemi

The Financial Statement Audits for New Auditors series of courses is focused on assisting new staff moving into an audit practice of non-public business entities (PBEs). These courses will help staff on their first audit engagement. This is part two of the three part series.

Publication Date: August 2019

Designed For
For entry-level, newly designated in-charge and managers in public practice.

Topics Covered

• Overview of risk assessment
• Assertions
• Relevant assertions
• Risk of material misstatement
• Materiality
• Consideration of fraud risk

Learning Objectives

• Recognize and explain audit assertions
• Describe Risk of Material Misstatement (RMM)
• Identify how to calculate RMM
• Recognize how to explain inherent risk and control risk combined into RMM impacts the audit procedures to perform
• Identify the types of materiality and how each is used in an audit
• Recognize which balance sheet items is most likely to have the highest risk in terms of the completeness assertion
• Differentiate combinations of inherent risk and control risk represents an accurate determination of the risk of material misstatement
• Identify which quantified items will rarely be encountered in the course of performing testing as a relatively new staff person
• Describe how cutoff assertion for classes of transactions is best defined
• Recognize which algebraic expressions best describes the concept of risk of material misstatement
• Identify which assertions will be least significant when assessing the risks regarding trade accounts receivable

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Auditing (2 hours)

Program Prerequisites
None

Advance Preparation
None