Substantive Audit Procedures for Different Levels of Risk 1 CPE

Finding the balance between the assessed risk and work performed in an audit is an art that many times is done in an overkill manner. It does not have to be this way. This introductory course helps an auditor, whether first year or an experienced senior, to better understand the risk assessment process, and how that ties to the requirements for appropriately performing procedures linked to the assessed level of risk. We explore the different levels of assessed risk, and how to recognize if you have appropriate substantive audit procedures.

This course touches upon the risk assessment, and how the identification of immaterial, significant accounts and RMM accounts and classes of transactions determines work performed. This course discusses the linkage between the risk areas, their related assertions, and the substantive procedures performed.

Course Key Concept: Audit, Risk Assessment, RMM, Material Misstatement, Significant Account, Materiality, Substantive Procedures, Immaterial, CPA, Audit Efficiency. Target Audience: Beginner (Intern or First Year) to 3 Year experienced Senior Auditor.

Prerequisites

No advanced preparation or prerequisites are required for this course.

Learning Objective

• Explore risk assessment.
• Identify immaterial, material and RMM accounts.
• Recognize the requirements for testing material accounts.
• Explore the linkage between extent of procedures and risk assessment.
• Discover the requirements for testing RMM accounts.

Last updated/reviewed: March 28, 2024