DESCRIPTION
This module addresses the requirements regarding gaining an understanding of the client and their entity (AU-C 315) by discussing the components of understanding the entity and its environment. Through active learning, including small group activities, participants will learn how to utilize curiosity and storytelling skills to improve the gathering and documentation of information throughout the understanding the entity phase, and how this can lead to a more effective risk assessment process.
LEARNING OBJECTIVES
- Describe the purpose, uses, and requirements of the understanding the entity phase of the audit
- Perform procedures to gather information during the understanding the entity phase, with a focus on identifying potential risks of material misstatement

