DESCRIPTION
This module covers foundational concepts for participants preparing to perform audit procedures in response to assessed risks. Participants begin the session by learning about the role of assertions in audit performance and by defining common assertions through active classroom discussion. Next, the module covers the seven procedures available to the auditor for gathering audit evidence, including a discussion of the strengths and weaknesses of each procedure and how technology can assist in the application of each procedure. To further apply and practice the concepts covered, participants conclude with a small-group activity demonstrating how audit procedures are selected to directly address one or more specific identified assertion-level risks.
LEARNING OBJECTIVES
- Define the common financial statement assertions for which teams gather evidence and how they relate to different areas of the financial statements
- List and define seven basic audit procedures used to gather evidence to address identified risks of material misstatement
- Recognize situations to use and perform each of the basic audit procedures effectively and efficiently
