This interactive module provides participants with an overview of the governmental audit process, including the key phases of an audit and the typical order in which those phases are completed. Participants will explore how a thorough understanding of the governmental entity and its environment serves as an important foundation for effective audit planning, risk assessment, and documentation.

The module focuses on the information auditors need to obtain and the procedures they can perform to develop a deeper understanding of the entity, its operations, and its environment. Participants will examine the purpose and required elements of this process, along with the audit procedures used to identify potential risks of material misstatement.

Through interactive discussion and practical application, participants will also explore how intentional curiosity can strengthen the process of understanding the entity. Learners will consider how asking better questions and looking beyond surface-level information can lead to a more complete understanding of the governmental entity, improve documentation, and support a more effective overall audit plan.