Author : | Andrew Clark, EA |
Course Length : | Pages: 27 ||| Word Count: 11,576 ||| Review Questions: 6 ||| Final Exam Questions: 10 |
CPE Credits : | 2.0 |
IRS Credits : | 0 |
Price : | $17.95 |
Passing Score : | 70% |
Course Type: | NASBA QAS - Text - NASBA Registry |
Technical Designation: | Technical |
Primary Subject-Field Of Study: | Auditing - Auditing for Course Id 2373 |
Description : | Every audit requires planning. Audit planning requires evaluating materiality and risk. Both materiality and risk evaluation require judgement from the auditor because both concepts directly impact the auditor's planned audit evidence. Materiality is important because the auditor provides assurance to financial statement users that the financial statements are free of material misstatements. This requires the auditor to develop a preliminary judgment about materiality when planning the audit, which will provide the basis for that important assurance. In addition, the auditor must consider risk to effectively address the most appropriate risks for each engagement. The auditor's understanding of the entity and its environment, including its internal control, provide a basis for the auditor's assessment of the risk of material misstatement. Using the audit risk model and tolerable misstatement for each account, the auditor determines the audit evidence needed to achieve an acceptable level of audit risk for the engagement. |
Usage Rank : | 32500 |
Release : | 2024 |
Version : | 1.0 |
Prerequisites : | None. |
Experience Level : | Overview |
Additional Contents : | Complete, no additional material needed. |
Additional Links : |
Audit Risk
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Advance Preparation : | None. |
Delivery Method : | QAS Self Study |
Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
Revision Date : | 24-Sep-2024 |
NASBA Course Declaration : | Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam. |
Approved Audience : | NASBA QAS - Text - NASBA Registry - 2373 |
Keywords : | Auditing, Risk, Assessment, Materiality, cpe, cpa, online course |
Learning Objectives : |
Course Learning Objectives At the end of this course, students will be able to:
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Course Contents : | Chapter 1 - Auditing Risk Assessment and Materiality Course Learning Objectives Introduction Report title requirements Audit report address requirement Introductory paragraph requirements Scope paragraph requirements Opinion paragraph requirements Name of CPA firm requirement Audit report date requirement Materiality Defined Applying Materiality Materiality Preliminary Judgement Preliminary Materiality Judgment Factors Evaluating Materiality Factors Affecting Materiality Materiality Guidelines Example Estimate Misstatement Audit Risk Audit Risk Model Planned Detection Risk Inherent Risk Control Risk Acceptable Audit Risk Risks in the Audit Risk Model Assessing Acceptable Audit Risk Engagement Risk Acceptable Audit Risk Factors User Reliance on Financial Statements Client’s Size Distribution of Ownership Nature and Amount of Liabilities Financial Difficulties After the Audit Report Is Issued Liquidity Position Profits or Losses in Previous Years. Method of Financing Growth Nature of the Client's Operations Competence of Management Evaluating Management Integrity Audit Risk Decision Inherent Risk Inherent Risk Factors Nature of the Client's Business Results of Previous Audits Initial Versus Repeat Engagement Related Parties Nonroutine Transactions Recording Account Balances and Transactions Correctly Makeup of the Population Fraudulent Financial Reporting and Misappropriation of Assets Inherent Risk Decisions Assessing Inherent Risk Risk to Evidence Relationship Audit Risk for Segments Measurement Limitation Evidence-Planning Worksheet Example Risk and Materiality to Evidence Summary Addendum - Audit Reports Review Questions Glossary |