This module reinforces the importance of effective risk assessment in planning and executing an efficient government audit. Participants will review key risk assessment concepts and terminology, including the audit risk model, inherent risk, control risk, and significant risks, and consider how these concepts inform the overall audit approach.

The module then moves into a government audit case study focused on identifying, assessing, and documenting assertion-level risks of material misstatement. Through this practical application, participants will distinguish between financial statement-level and assertion-level risks and consider how those risks should be evaluated and documented as part of the audit planning process.

Participants will also explore the role of team discussions and analytical vigilance in developing an appropriate risk assessment. By applying these concepts to a realistic government audit scenario, learners will strengthen their ability to identify significant risks and support an effective, well-documented audit approach.