This course will cover both materiality and risk evaluation which requires judgement from the auditor because both concepts directly impact the auditor's planned audit evidence.
At the end of this course, you will be able to:
- Know why materiality is important for an audit of financial statements.
- Know the audit risk model and its components.
- Know the impact of engagement risk on acceptable audit risk.
- Know the relationship of risks to audit evidence.
Prerequisites
No advanced preparation or prerequisites are required for this course.
Learning Objective
- Identify why materiality is important for an audit of financial statements.
- Explore and make a preliminary judgment about what amounts to consider material.
- Identify the audit risk model and its components.
- Recognize the impact of engagement risk on acceptable audit risk.
- Recognize the relationship of risks to audit evidence.
Last updated/reviewed: March 18, 2024
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Chris Clark
Audit Associate
INTRODUCTION AND OVERVIEW
- Introduction to Audit Materiality and Risk Assessment 2:25
- Set Materiality and Assess Acceptable Audit Risk 9:47
- Materiality Defined 6:07
- Evaluating Materiality and Factors Effecting Materiality 8:06
- Audit Risk 12:12
- Financial Difficulties and Inherent Risk 10:52
- Makeup of Population 9:50
- Measurement Limitations 6:52
- Risk and Materiality to Evidence 4:14
- Summary 2:00
CONTINUOUS PLAY
SUPPORTING MATERIAL
- Slides: Audit Materiality and Risk Assessment PDF
- Audit Materiality and Risk Assessment Glossary/ Index PDF
REVIEW AND TEST
- REVIEW QUESTIONS quiz
- FINAL EXAM exam
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