<p>One of the most challenging parts of an audit is the risk assessment. Within the risk assessment, the auditor needs to decide which account groups and classes of transactions have a risk of material misstatement, and which are significant accounts. Used in both degrees of risk is the term “relevant assertions” with two very different meanings.</p>
<p>This class takes a look into what the standards mean by “relevant” in the context of the account’s risk identification. We will then explain the differences, and what the standards require for testing with these assessed levels of risk.</p>
<p>Course Key Concept: <b>Risk Assessment, Relevant Assertions, Risk of Material Misstatement, Audit Planning, Significant Accounts, Key Controls, Audit, RMM </b></p>
Prerequisites
No advanced preparation or prerequisites are required for this course.
Learning Objective
- Explore risk assessment.
- Recognize Relevant Assertions as a defined term.
- Discover the requirements for testing relevant assertions and testing assertions relevant to a significant account.
Last updated/reviewed: March 11, 2024
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INTRODUCTION AND OVERVIEW
- Introduction to Relevant Assertions Are Not Relevant Assertions: Untangling the Meanings 2:02
- Risk Assessment 7:03
- Relevant Assertions 11:41
- RMM Accounts 3:33
- Key Controls 10:49
- Example of Understanding a Control 3:07
- Significant Accounts 2:00
- Example of A Significant Account Procedure and Summary 1:19
SUPPORTING MATERIAL
- Slides: Relevant Assertions Are Not Relevant Assertions: Untangling the Meanings PDF
- Relevant Assertions Are Not Relevant Assertions: Untangling the Meanings Glossary/Index PDF
REVIEW AND TEST
- REVIEW QUESTIONS quiz
- FINAL EXAM exam
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