This module addresses the requirements regarding gaining an understanding of the client and their entity (AU-C 315) by focusing on the following components of understanding the entity and its environment:

• Organizational Structure, Ownership, Governance, and Business Model
• Industry, Regulatory, and Other External Factors
• Measures Used Internally and Externally to Assess the Entity’s Financial Performance
• Applicable Financial Reporting Framework and Accounting Policies

Through active learning, including small group activities, participants will learn how to gather and update information throughout the understanding the entity phase and how the information gathered may influence risk assessment.