DESCRIPTION
This module reinforces the importance of risk assessment to the execution of an effective, efficient audit. Participants will engage in active learning to review key terms and concepts involved in risk assessment, including the audit risk model, inherent risk, control risk, and significant risks. The remainder of the module consists of a case study focused on identifying, assessing, and documenting assertion-level risks of material misstatements.
LEARNING OBJECTIVES
- Define key terms involved in audit risk assessment
- Recognize potential risks of material misstatement and clearly document risks as financial statement level or assertion level risks
- Describe the characteristics of an effective audit team discussion or planning meeting
