DESCRIPTION
This module will introduce participants to the risk response options in DAS and provide guidance on when each type of procedure is effective and efficient. The course also explores the two levels of risks in DAS (financial statement level or assertion level) and discusses the appropriate types of risk response for each level of risk. Through an interactive group exercise, participants will close the module by applying the information covered during the module, designing their own responses to assessed risks for an example company.
LEARNING OBJECTIVES
- Explain the strengths and limitations of each type of further audit procedures (tests of controls, substantive analytical procedures, and tests of details)
- Analyze financial statement level and assertion level risks to determine the nature, timing, and extent of appropriate audit responses
- Document clear linkage between assessed risk and planned risk responses in RA-3 in DAS
