Best Practices for Identifying and Evaluating Audit Risk - Linking Risk to the Detailed Audit Plan 2.5 CPE

Properly identifying, assessing, and responding to risk through a detailed audit plan is critical to an effective and efficient financial statement audit. This module will emphasize the key concepts and best practices that drive a thoughtful risk-based approach to forming an opinion on the financial statements.

Major Topics:

• Overview of a risk-based audit process
• How the individual elements of the audit risk formula interrelate
• Emphasis on overall risk, fraud risk, and control risk
• Linking the assessed risk of material misstatement to the detailed audit plan
• Documenting risk assessment conclusions and responses

Prerequisites

No advanced preparation or prerequisites are required for this course.
Designed For: Accountants who must identify, assess and respond to risk through a detailed audit plan on a financial statement audit.

Learning Objective

• Explore and explain the importance of risk assessment to a high-quality audit.
• Discover and describe the audit risk formula, including how the elements relate.
• Recognize and discuss the steps and best practices of an effective risk assessment process.
• Identify and link risk to a detailed audit plan.

Last updated/reviewed: March 23, 2024